TowerCo of Africa Tanzania (TOA Tanzania), a provider of telecommunications infrastructure, has recently entered into a $30 million financing deal with British International Investment (BII). This funding is set to enhance TOA Tanzania’s network infrastructure by facilitating the construction of approximately 200 new cellular towers. The expansion is particularly aimed at increasing mobile network coverage in the rural regions of mainland Tanzania and Zanzibar, potentially improving mobile connectivity for an estimated 600,000 inhabitants.
Inaugurated in February 2023, TOA Tanzania operates as a subsidiary of Axian Telecom and focuses on the ownership and leasing of passive telecom infrastructure, such as cell towers, to various mobile network operators. The company has a footprint in several African countries, including Madagascar, the Democratic Republic of the Congo, Uganda, and Tanzania, where it is contributing to the development of telecom infrastructure.
Innocent Mushi, the CEO of TOA Tanzania, expressed that the financing agreement with BII reinforces the company’s dedication to reducing the digital divide within Tanzania. The investment from BII is expected to hasten TOA Tanzania’s growth plans and extend vital mobile services to areas that currently suffer from insufficient connectivity.
Mushi also highlighted TOA Tanzania’s commitment to sustainability and social responsibility. The upcoming cell towers are planned to be powered by renewable energy sources and will follow eco-friendly waste management protocols.
The telecommunications sector in Tanzania is on an upward trajectory, having generated an estimated revenue of $2.2 billion in 2023. Forecasts suggest that the sector will continue to grow at a compound annual growth rate (CAGR) of over 4% through to 2028. The number of mobile subscriptions in Tanzania has seen a substantial increase, reaching 67.72 million in 2024, a significant rise from 50.8 million the year before.
TOA Tanzania’s expansion efforts are in line with the UK-Tanzania Mutual Prosperity Partnership, which was established in April 2024 with the support of BII. This bilateral partnership is designed to catalyze £1 billion ($1.27 billion) in government-backed investments in Tanzania over the coming five years.
