NextGen Tower Company, TowerCo of Africa Uganda has secured US$40 million in financing from European development finance partners, to improve internet penetration in Uganda via 506 new towers.
Mobile internet penetration in Uganda is still low, at <60%, as at 2023, against a coverage goal of 95%
CEO of TowerCo of Africa Uganda, Geoffrey Donnels Oketayot, the enthused about the partnership, 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.” He added, “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.”
The funding, which includes contributions from the European Investment Bank, the Development Bank of Austria (OeEB), and the Belgian Investment Company for Developing Countries, will primarily be allocated to enhancing mobile phone network coverage in rural areas of Uganda. A total of 506 new telecom towers will be installed to address connectivity gaps.
Vice President of the European Investment Bank, Thomas Östros, emphasized the institution’s commitment to bridging the digital divide in Africa, stating, “The European Investment Bank is committed to tackling the digital divide in Africa and is happy to support TowerCo of Africa Uganda’s engagement to transform rural connectivity across Uganda.”
The TowerCo of Africa project aligns with the EU Global Gateway initiative, which aims to promote inclusive development by addressing connectivity challenges in rural areas. Nada Shall, liaison officer – East Africa at BIO, highlighted the transformative potential of the project, stating, “This project aligns with our goal of empowering communities through sustainable development, and we anticipate the transformative effects it will bring to rural areas.”
The collaborative effort between TowerCo of Africa Uganda and its European partners represents a significant step towards advancing digital infrastructure in Uganda. Ambassador Jan Sadek, head of the European Union Delegation to Uganda, commended the initiative, stating, “This visionary new telecom investment by TowerCo of Africa Uganda, backed by European development finance partners, overcomes barriers holding back mobile network investment and will unlock digitalization and telecommunications opportunities for rural communities across the country.”
The project, which is set to be implemented over the next two years, is expected to generate employment opportunities for local communities during the construction phase, further contributing to sustainable development in Uganda.
Uganda also announced an agreement with China to improve nationwide connectivity earlier this year.
