Tanzanian TowerCo Secures $30 Million For Telecommunications Expansion

TowerCo of Africa Tanzania, a recent player in the telecommunications infrastructure sector, has secured $30 million in funding to construct 200 new telecommunications sites. Launched in February 2023, TowerCo of Africa Tanzania leases its passive telecommunications infrastructure to mobile network operators, contributing to the connectivity landscape across several African nations including Madagascar, the Democratic Republic of the Congo, Uganda, and Tanzania. The parent company, Axian Telecom, has been expanding its footprint with TowerCo of Africa Uganda emerging from a rebranding of UBUNTU Towers Uganda.

Mr. Innocent Mushi, CEO of TOA Tanzania, highlighted the significance of this financial injection, stating, “The funds will allow the company to accelerate its growth and provide essential telecom services to underserved communities.” He also underscored the company’s commitment to sustainability, noting that the new sites were chosen with a focus on incorporating renewable energy sources and adhering to responsible waste disposal practices.

The company is ambitious, aiming to double its site portfolio by the end of its first operational year. The expansion is expected to significantly support underserved communities and bolster government digitalisation efforts, fostering financial inclusion and job creation.

The overall investment prospects have also improved in Tanzania, on a broader perspective. The Mutual Prosperity Partnership (MPP) was approved by the British International Investment (BII) in April 2024 regarding the UK-Tanzania deal. This move is expected to facilitate about £1 billion ($1. 27 billion in government-supported investment within Tanzania within the coming five years.

This sector is promising for growth since it has been estimated to generate approximately 2 million US Dollars in Tanzania. 125 million dollars in revenue by 2023 with the projected market value of 2 billion dollars. Some industry forecasts suggest the current and future growth rates surpass trending 4% compound annual growth rate (CAGR) through 2028. This is reflected in the increase in the number of mobile connections which stood at 50. From 8 million in 2023 to 67. 72 million in 2024.

The expansion of TowerCo of Africa Tanzania is a clear indication of exploring this growing market in a bid to close the telecoms and offer telecommunication solutions in enhancing socio-economic development.