Axian secures $100m EIB funding for Tanzania, Madagascar broadband expansion
DAR ES SALAAM: The European Investment Bank (EIB Global) has unveiled a 100 million US dollars financing package for Axian Telecom to expand mobile broadband infrastructure in Tanzania and Madagascar.
The project will expand 4G mobile broadband network infrastructure across the two countries as well as continuing the introduction of 5G coverage.
The 60 million US dollars of the financing will benefit Tanzania and 40 million US dollars go to Madagascar.
Axian Telecom operates under the Yas brand in both countries.
This new Global Gateway investment, backed by a budgetary guarantee of the European Commission, will enhance access to high-speed communications, accelerate inclusive digitalisation, and drive sustainable development across the two countries.
This investment will help reduce geographic inequality of telecom access in Africa and emerging markets.
Axian Telecom is a leading pan-African telecommunications company with a strong market position in its core areas of operation.
Axian Telecom currently serves over 44 million subscribers and is present in nine Sub-Saharan African countries with its key mobile and fixed operations being in Tanzania, Madagascar, Senegal, Togo and Comoros.
Axian Telecom’s CEO, Mr Hassan Jaber said, this new large-scale network investment will pave the way for socio-economic growth, digital inclusion and better opportunities
“The 100 million US dollars EIB Global financing will help us expand mobile phone infrastructure in Madagascar and Tanzania and benefit millions of people.
‘Digital connectivity opens doors for education, business, healthcare and social inclusion,” stated European Investment Bank Vice-President Ambroise Fayolle.
“This new investment demonstrates the EIB’s commitment to empowering communities, fostering sustainable development, and driving positive change through enhanced access to affordable high-speed communications.”
Improved connectivity plays a pivotal role in advancing socio-economic development, and this investment under the European Union Global Gateway Strategy aligns with the United Nations Sustainable Development Goals (SDGs).
By expanding a resilient and energy efficient mobile broadband infrastructure, the new EIB Global investment will unlock numerous SDG benefits, including sustained, inclusive and sustainable economic growth, leading to the creation of quality jobs.
Fragile communities will gain access to the tools and resources necessary to connect with the wider world, fostering knowledge sharing, e-commerce, and innovation.
The European Union Ambassadors to Madagascar and Tanzania have expressed their support for the EIB’s investment and its significant impact on the countries’ development.
EU Ambassador to Madagascar and the Union of the Comoros Roland Kobia stated that “This commitment from the EU through the EIB further demonstrates, in difficult times, our desire to contribute to the sustainable development of Madagascar through private investments in the formal sector and thereby generate growth and open up opportunities for all.
This investment will enhance mobile broadband connectivity and bring vital opportunities for economic and social growth to all corners of Madagascar.
The expansion of 4G and the introduction of 5G in a context of fair competition between telecommunication operators will be key drivers of digital inclusion, supporting education, innovation, and the creation of new jobs.”
EU Ambassador to Tanzania, Ms Christine Grau said, “The European Union is a key partner for Tanzania in advancing the government’s digital transformation agenda.
Our partnership is broad, covering policy support as well as infrastructure and investments. This EIB Global investment in Axian Telecom, made possible through a European Union guarantee, is a concrete example of our commitment to invest in digital connectivity.
The European Union believes that in the area of connectivity, reinforcing public-private partnerships is crucial for a human-centric model of digital transformation to ensure that no one is left behind.”
EIB Global is a key financier for telecom and digitalisation in Africa and emerging markets. The current project supports the objectives of the EU’s Digital4Development (D4D) initiative launched in 2017.
It feeds into the Global Gateway strategy for Africa that seeks to mobilise up to 150 billion Euros by 2030 for the development of physical and digital infrastructures across the continent.
By collaborating with local stakeholders, telecom operators and government agencies, EIB Global aims to create a comprehensive and inclusive digital ecosystem.
Though Axian Telecom is operating in a highly competitive market, the burgeoning youth population across countries of operation is expected to accelerate growth of demand for mobile communications and digital services.
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