The European Investment Bank (EIB) has announced a financing package of US$100mn to Madagascan-based pan-African operator AXIAN Telecom to support the expansion of its mobile broadband network infrastructure across Madagascar and Tanzania.
The project will expand 4G infrastructure across both markets and support the introduction of 5G coverage.
Backed by a budgetary garuantee from the European Commission, the new Global Gateway investment will enhance high-speed connectivity, drive digital inclusion and sustainable development.
AXIAN Telecom CEO Hassan Haber stated that the new financing will “help us expand mobile phone infrastructure in Madagascar and Tanzania and benefit millions of people. This new large-scale network investment will pave the way for socio-economic growth, digital inclusion, and better opportunities."
Of the US$100mn, US$60mn will be invested in Tanzania with the remaining US$40mn going to Madagascar. Tanzania has become a hot bed for investment from the MNO, who recently raised US$160mn from the African Development Bank.
The Global Gateway strategy is the EU's positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems.
The EU-Africa Global Gateway investment package consists of €150 billion in investments to help accelerate Africa’s digital and green transition as well as support sustainable jobs growth and stronger health systems.
The EIB recognises the role of expanding access to resilient and efficient mobile broadband infrastructure in driving the United Nations Sustainable Development Goals. EU government representatives in both Tanzania and Madagascar have commented on the role this investment will play in supporting key SDG pillars.
“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” said Deputy Head of the EU Delegation to Madagascar Laurent d’Ersu.
EU Ambassador to Tanzania Christine Grau stated “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.”
