The Emerging Africa Infrastructure Fund (EAIF) has committed $30-million to shared telecom tower infrastructure owner, operator and developer Eastcastle Infrastructure to enable the purchase and development of telecommunication towers across the Democratic Republic of Congo (DRC) for the country's mobile network operators (MNOs).

EAIF, a company of infrastructure development and finance organisation Private Infrastructure Development Group, has participated in the International Finance Corporation (IFC) loan programme as an IFC B lender. IFC and Standard Bank of South Africa acted as co-lead arrangers.

The consortium's funding operationalises Eastcastle's growth strategy, which includes the expansion of its tower company (towerco) in the DRC and Nigeria, bolsters the company's balance sheet and unlocks additional cash flow to finance the construction of built-to-suit (BTS) towers and power equipment for provision of towerco services.

The investment is expected to connect more communities across the DRC, with the expansion of mobile Internet coverage and increased access to second-, third- and fourth-generation technology set to transform one of Africa's most underdeveloped mobile markets and generate various economic opportunities for populations within rural and urban areas.

“With Eastcastle's experience and expertise rooted in developing mobile connectivity in nascent markets, we are excited to witness the evolution of the tower sector and support an ambitious young population who will achieve given access to more opportunities.

“Backing this long-term vision emphasises the importance of a proactive and positive approach to laying the foundation for rapid expansion in high-potential markets such as the DRC,” EAIF fund manager Ninety One investment director Esther Chan said.

Eastcastle's BTS model leverages the team's expertise in the purchase, development and operational efficiency of towers, opening up more private capital to invest in quality and improved access to mobile Internet connectivity.

The continued shift from exclusive ownership to colocation allows MNOs to share towers, offering customers more choice and more affordable tariffs.

Outsourcing towers to specialist towercos, such as Eastcastle, considerably improves tower density and service delivery and reliability to consumers, as well as reduces data costs and expands coverage of higher-speed Internet connections to larger segments of society.

“DRC’s digital market has untapped potential, and infrastructure sharing initiatives such as telecom towers are central to helping the country boost digital inclusion. IFC’s growing work with Eastcastle will play a key role in connecting more people in the DRC to the digital economy,” said IFC DRC country manager Malick Fall.

EAIF's investment backs the DRC's national development plan as part of a commitment to developing digital infrastructure across the country, where 22-million new subscribers are expected to join the market by 2030, by which time the number of towers in the country will grow by 32%.

The loan is EAIF's second capital commitment to a towerco operating in the DRC, signifying confidence in a sector positioned for onward growth.