New Investments

TowerCo Tanzania Secures $30 Million to Expand Rural Connectivity

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TowerCo of Africa Tanzania (TOA Tanzania), a telecommunications infrastructure provider, has signed a $30 million financing agreement with British International Investment (BII) to bolster its network across the country.

This investment will enable TOA Tanzania to construct roughly 200 new cell towers, with a particular focus on expanding coverage in underserved rural areas of mainland Tanzania and Zanzibar.

These new sites are expected to improve mobile connectivity for up to 600,000 residents.

Founded in February 2023, TOA Tanzania is a subsidiary of Axian Telecom, specializing in owning and leasing passive telecom infrastructure, such as cell towers, to mobile network operators.

The company is actively involved in developing telecom infrastructure across several African nations, including Madagascar, the Democratic Republic of the Congo, Uganda, and Tanzania.

“This financing agreement strengthens our commitment to bridging the digital divide in Tanzania,” said Innocent Mushi, CEO of TOA Tanzania.

“With BII’s support, we can accelerate our growth and deliver essential mobile services to communities currently lacking adequate connectivity.”

Mushi emphasized the company’s dedication to environmental and social responsibility. The new towers will reportedly utilize renewable energy sources and adhere to responsible waste management practices.

This expansion aligns with Tanzania’s thriving telecommunications sector. The industry generated an estimated $2.2 billion in revenue in 2023 and is projected to maintain a compound annual growth rate (CAGR) exceeding 4% until 2028.

Additionally, the number of mobile subscriptions in the country has grown significantly, reaching 67.72 million in 2024, compared to 50.8 million in the previous year.

TOA Tanzania’s initiative complements the UK-Tanzania Mutual Prosperity Partnership, a collaboration signed in April 2024 with BII’s involvement.

This partnership aims to unlock £1 billion ($1.27 billion) in government-backed investments for Tanzania over the next five years.

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