European Investment Boosts Uganda’s Rural Telecom Expansion with US$40 Million Investment
The Head of the European Investment Bank Regional Hub – East Africa, Edward Claessen, with TowerCo of Africa Uganda CEO, Geoffrey Donnels Oketayot, during the announcement on the sidelines of the Uganda-EU Business Forum
TowerCo of Africa Uganda has secured a substantial US$40 million in long-term financing from European development finance partners to bolster the expansion of mobile phone network coverage in rural areas of Uganda. The financing is provided by the European Investment Bank (EIB), the Development Bank of Austria (OeEB), and the Belgian Investment Company for Developing countries (BIO).
The 10-year funding will facilitate the installation of 506 new telecom towers, primarily located in rural areas currently lacking mobile network access or facing network saturation. These towers, predominantly powered by renewable energy, aim to enable rural communities to access 4G and 5G data services, mobile money solutions, and foster financial inclusion.
As of now, only 65% of Uganda has mobile network coverage, and this investment seeks to address coverage challenges, playing a crucial role in advancing the country’s goal of achieving 95% coverage.
The project tackles a key barrier hindering telecom access in rural Africa by implementing towers shared by multiple mobile network operators, ensuring commercial viability and providing more comprehensive network access for rural communities.
A significant 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, stated, “The deployment of hundreds of new telecom towers across Uganda will make a significant leap towards ensuring that no one is left behind in the digital age.”
Thomas Östros, European Investment Bank Vice President, emphasized the commitment to bridging the digital divide in Africa and supporting TowerCo of Africa Uganda’s engagement in transforming rural connectivity across Uganda.
The rural telecom expansion initiative is anticipated to create 2,000 skilled and unskilled jobs for local communities during the two-year installation period. The European Investment Bank will contribute US$16 million, while the Development Bank of Austria and Belgium will provide US$12 million each for this transformative project. The initiative represents a significant stride in narrowing the digital divide, unlocking opportunities for rural communities, and fostering sustainable development in Uganda.
