TowerCo of Africa Uganda has announced plans to set up 506 new telecom towers.
This move comes as part of a substantial US$40 million backing from European development finance partners, including the European Investment Bank, the Development Bank of Austria (OeEB), and the Belgian Investment Company for Developing Countries (BIO).
The initiative aims to enhance telecom infrastructure significantly, paving the way for improved access to 5G data, mobile money services, and financial inclusion for rural communities.
With only 65% of Uganda currently covered by mobile networks, this new investment is poised to play a pivotal role in achieving the country’s ambitious goal of 95% coverage. The 10-year financing plan will see the installation of these towers in strategic rural locations, addressing areas with limited or saturated mobile network coverage.
A notable aspect of this project is its focus on sustainability, with a considerable portion of the new towers set to be powered by renewable energy sources such as solar power. This move aligns with TowerCo of Africa Uganda’s commitment to responsible infrastructure development and also mitigates the risks associated with fuel and generator theft.
Geoffrey Donnels Oketayot, CEO of TowerCo of Africa Uganda, highlighted the project’s potential to drive economic growth and digital inclusion. He emphasized the significance of the new towers in bridging the digital gap and ensuring that rural communities are not left behind in the digital age.
European Investment Bank Vice President, Thomas Östros, echoed this sentiment, underlining the bank’s dedication to addressing the digital divide in Africa. He emphasized the importance of such partnerships in fostering inclusive development, a sentiment shared by Nada Shall of the Belgian Investment Company for Developing Countries.
Sabine Gaber, a member of the Executive Board of OeEB, stated the crucial role of modern telecommunication services in driving economic and social progress. This sentiment was further reinforced by Ambassador Jan Sadek, Head of the European Union Delegation to Uganda, who highlighted the transformative potential of this investment for rural communities across the country.
Over the next two years, TowerCo of Africa Uganda plans to install these new telecom towers, creating around 2,000 jobs for skilled and unskilled workers within local communities during the construction phase.
The European Investment Bank, with support from the ACP Trust Fund, will contribute US$16 million, while the Development Bank of Austria and the Belgian Investment Company for Developing Countries will each provide US$12 million for this new initiative by TowerCo of Africa Uganda.
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