European Investment of US$40 Million Boosts Uganda’s Rural Telecom Expansion

In a significant move to enhance mobile network coverage in rural Uganda, TowerCo of Africa Uganda has secured long-term financing of US$40 million from European development finance partners. The financing, provided by the European Investment Bank (EIB), the Development Bank of Austria (OeEB), and the Belgian Investment Company for Developing Countries (BIO), aims to install 506 new telecom towers strategically positioned in underserved rural areas.

The 10-year financing initiative addresses the current challenge of limited mobile network coverage, providing a catalyst for digital empowerment and economic advancement in remote communities. The project, supported by renewable energy sources, aims to bring 4G and 5G data services, mobile money solutions, and financial inclusion to rural areas.

Currently, only 65% of Uganda has mobile network coverage, emphasizing the necessity to overcome coverage challenges. The new investment supports Uganda’s goal to achieve 95% coverage and will play a crucial role in bridging the digital divide in the country.

The network investment by TowerCo of Africa Uganda, backed by European financing, aims to tackle barriers hindering telecom access in rural areas. The shared towers, to be utilized by multiple mobile network operators, offer a commercially viable solution for expansion and foster comprehensive and inclusive network access for rural communities.

A considerable portion of the new towers will be powered by solar energy, aligning with TowerCo of Africa Uganda’s commitment to responsible infrastructure development and climate action.

Geoffrey Donnels Oketayot, CEO of TowerCo of Africa Uganda, expressed his enthusiasm for the financing, stating, “This new financing backing from European development finance partners is a testament to our shared vision of connecting communities and fostering economic growth here in the heart of Africa.”

Thomas Östros, European Investment Bank Vice President, emphasized the commitment to addressing the digital divide in Africa and supporting rural connectivity. The collaboration exemplifies the shared commitment to making a positive impact on the lives of rural populations.

Nada Shall, Liaison Officer East-Africa for BIO, highlighted Belgium’s contribution to expanding mobile coverage in Uganda and the anticipated transformative effects on rural areas.

Sabine Gaber, Member of the Executive Board of OeEB, emphasized the importance of providing rural areas with access to modern telecommunication services for economic and social progress.

Ambassador Jan Sadek, Head of the European Union Delegation to Uganda, underlined the focus on increasing access to digital infrastructure and hailed the visionary telecom investment by TowerCo of Africa Uganda as a step toward unlocking opportunities for rural communities.

The installation of the new telecom towers is expected to be completed over the next two years, generating 2,000 skilled and unskilled jobs for local communities during construction. The partnership signals a significant step forward in narrowing the digital divide, unlocking new opportunities for rural communities, and fostering sustainable development in Uganda.