The Emerging Africa Infrastructure Fund (EAIF or the Fund) has announced that it has loaned US$20 million to Helios Towers Africa (HTA) to partly finance the purchase of 950 telecommunications towers in the Democratic Republic of Congo (DRC). EAIF is participating in a syndicated loan providing HTA with a total of US$105 million.

As we reported in mid May, Bharti Airtel International BV, a subsidiary of Bharti Airtel Limited and Helios Towers Africa (HTA) announced an agreement for the divestment of approximately 950 telecoms towers in the Democratic Republic of Congo from Airtel to HTA. The divestment also includes towers currently under construction in the DRC.

The agreement will allow Airtel to focus on its core business and customers, while enabling it to deleverage through debt reduction. The deal will significantly reduce Airtel’s ongoing capital expenditure on passive infrastructure and also mitigate the proliferation of towers through enhanced sharing.

HTA is focused on reducing operating cost, improving network uptime, preserving capital,  and mitigating the proliferation of towers through infrastructure sharing, as they expand network coverage and capacity to meet the growing demand and improve quality of telecom service. 

 David White, Chair of EAIF, said:

“Advanced telecommunications are vital to unlocking more of the DRC’s potential. HTA’s investment is an important boost to enterprise and business growth in the country.”

“No other technology has the ability to bring remote communities into the economic mainstream, provide quick and reliable payments systems, open up markets to existing businesses and stimulate new business creation. HTA’s business model widens consumer choice and helps develop more competitive telco markets, which is good for business, good forjobs and communities and good for national economic developments.”

Commenting on the closure of its latest transaction with EAIF, HTA’s Chief Executive Officer, Kash Pandya, said

“EAIF has been a skilled, dependable, reliable and wholly supportive part of HTA’s growth and success. I am delighted that for the fifth time EAIF is with us as we grow the business across Africa. Our latest venture means that we are playing a key role in contributing to the long-term success of the economy of the Democratic Republic of Congo.

Our business model means that telecommunications service providers can focus their capital and management energies on the products and services they offer their customers. Because we own, operate and maintain the infrastructure, the incremental cost to our users of providing services to their customers falls. One of the many beneficial consequences of that is that more remote areas are brought into reach and the cost of services is more affordable in less developed areas.”