African Infrastructure Investment Managers (AIIM), African private equity firm Adenia Partners and IFC, a member of the World Bank Group, have partnered to invest $130 million in Africa’s telecoms sector.
The investment will go to support Eastcastle Infrastructure, a company specializing in Africa’s tower sector. The funding will support Eastcastle’s build-to-suit strategy to develop new telecom towers initially in the Democratic Republic of Congo, Nigeria and Côte d'Ivoire.
The deal comes as Africa’s data consumption per subscriber is expected to increase four-fold by 2025, and the number of new mobile internet users is expected to grow by 200 million. According to AIIM, by 2025, the number of operators that use bandwidth intensive technologies, such as 3G, 4G and 5G, are expected to account for 85 percent of connections, compared to 38 percent in 2017. In addition, smartphone usage is expected to rise to 65 percent of connections in 2025, up from the current