Towerco of Africa Tanzania Limited

TowerCo of Africa (TOA) Tanzania Limited is a key player in the telecommunications infrastructure sector, focusing on providing passive telecom infrastructure and related services. It is a subsidiary of the pan-African telecommunications service provider, Axian Telecom, and is a significant part of TOA’s growing presence across the continent, which also includes operations in Madagascar, Uganda, and the Democratic Republic of Congo.

Business Model and Services

TOA Tanzania’s core business model revolves around owning and operating passive telecommunications infrastructure, such as towers, and leasing them to mobile network operators (MNOs). This “build-to-suit” model allows MNOs to expand their networks and reach new areas, particularly in rural and underserved regions, without the need for significant capital expenditure on infrastructure. By sharing this infrastructure, the company helps to reduce costs for operators and promotes a more efficient use of resources in the telecom industry.

The company’s services include:

• Built-to-Suit: Designing, building, and operating new telecommunications sites to meet the specific needs of its clients.
• Colocation: Allowing MNOs to place their equipment on TOA’s existing towers, which helps them minimize costs and optimize network coverage.
• Sale and Leaseback: Acquiring existing tower sites from MNOs and then leasing them back to the operators. This allows MNOs to free up capital for their core business operations.
• In-Building Solutions: Providing solutions to enhance network coverage and performance within specific buildings or targeted zones.
• Support and Maintenance: Offering round-the-clock site supervision and proactive monitoring to ensure network performance and minimize downtime.

Strategic Goals and Impact in Tanzania

TOA Tanzania is committed to bridging the digital divide and supporting the country’s digital transformation. A major part of this commitment was demonstrated in May 2024 when the company secured a $30 million financing agreement with British International Investment (BII). This investment is designated to fund the construction of approximately 200 new telecommunications sites across the mainland and Zanzibar, with a strong focus on rural areas. This project is expected to improve the lives of up to 600,000 people by providing connectivity to previously isolated communities.

In addition to expanding network coverage, the company’s initiatives are designed to foster financial inclusion, support government digitization efforts, and create employment opportunities throughout the lifecycle of the sites. TOA Tanzania also emphasizes environmental sustainability, with a focus on using renewable energy sources and responsible waste disposal practices for its new sites.

The company’s growth strategy in Tanzania involves not only building new towers but also increasing the number of tenants on its inherited sites. With the government’s “Digital Tanzania” project aiming to achieve 80% broadband penetration by 2025, TOA Tanzania is well-positioned to play a critical role in supporting this national goal.