EIB Global Provides $100M for AXIAN Telecom’s 4G & 5G Expansion in Africa

AXIAN Telecom, a leading pan-African telecommunications provider, has operations in nine Sub-Saharan African countries and serves more than 44 million subscribers.

The European Investment Bank (EIB Global) has revealed a significant financing package of US$100 million for AXIAN Telecom to boost the expansion of mobile broadband network infrastructure across Madagascar and Tanzania. This investment, which is backed by a budgetary guarantee from the European Commission, will help introduce 4G and 5G mobile broadband infrastructure, significantly improving digital connectivity and enabling socio-economic growth across these two nations.

AXIAN Telecom, a leading pan-African telecommunications provider, has operations in nine Sub-Saharan African countries and serves more than 44 million subscribers. This investment will primarily benefit Tanzania, with US$60 million allocated for the expansion of mobile broadband infrastructure, while US$40 million will be used to enhance connectivity in Madagascar. The company operates under the Yas brand in both countries, providing mobile and fixed telecommunications services.

The financing package aims to bridge the digital divide in Africa and emerging markets, providing wider access to high-speed internet, enhancing digital inclusion, and promoting sustainable development. As mobile broadband infrastructure improves, it is expected to reduce geographic inequality, particularly in remote areas where access to telecom services has been limited.

According to AXIAN Telecom CEO, Mr. Hassan Jaber, the financing will have a transformative impact on the regions. “The US$100 million EIB Global 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 for the population,” he said.

Mr. Ambroise Fayolle, Vice-President of the European Investment Bank, emphasized the importance of connectivity in enhancing development. "Digital connectivity opens doors for education, business, healthcare, and social inclusion," he noted. “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.”

This investment aligns with the objectives of the European Union's Global Gateway Strategy, which aims to mobilize up to €150 billion by 2030 to develop infrastructure across Africa. By expanding mobile broadband coverage and introducing 5G in both countries, this initiative contributes directly to the United Nations Sustainable Development Goals (SDGs). It promotes sustained, inclusive, and sustainable economic growth, with the potential to create high-quality jobs and foster innovation across sectors.

The improved connectivity will also have wide-ranging socio-economic benefits, including fostering knowledge-sharing, boosting e-commerce, and enhancing healthcare and education systems. These advantages are expected to provide millions of people with new opportunities, contributing to the long-term development of Madagascar and Tanzania.

In Tanzania, the expansion of mobile broadband services is expected to support the government's ambitious digital transformation agenda. Ms. Christine Grau, the EU Ambassador to Tanzania, expressed strong support for the project. “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 is a concrete example of our commitment to invest in digital connectivity,” she said. She emphasized that the EU believes that reinforcing public-private partnerships is key to ensuring that digital transformation benefits everyone, particularly vulnerable groups.

Similarly, in Madagascar, the European Union’s strong commitment to the country’s development was highlighted by Laurent d’Ersu, Deputy Head of the EU Delegation to Madagascar and the Union of the Comoros. “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. This investment will enhance mobile broadband connectivity and bring vital opportunities for economic and social growth to all corners of Madagascar,” he stated. He further noted that the expansion of 4G and the introduction of 5G will drive digital inclusion, support education, foster innovation, and help create new jobs.

The increased connectivity will also have a profound effect on the education system in both countries, enabling students and educators to access learning resources and collaborate more effectively. Additionally, it will provide new opportunities for businesses to access global markets and expand, particularly in sectors such as e-commerce, agriculture, and manufacturing.

AXIAN Telecom’s project is a part of the European Union’s Digital4Development (D4D) initiative, launched in 2017, which focuses on creating inclusive digital ecosystems in developing countries. The initiative works alongside local stakeholders, telecom operators, and government agencies to ensure that investments in digital infrastructure lead to lasting, positive impacts. The broader goal is to enhance access to technology and information, contributing to the economic and social empowerment of communities across Africa.

The expansion of mobile networks in Tanzania and Madagascar also has a strategic long-term impact for the telecommunications sector, with demand for mobile communication services expected to surge as a result of the growing youth population in both countries. As digital services become more accessible, AXIAN Telecom is poised to see strong growth in its subscriber base, while also fostering a competitive telecommunications landscape.

This US$100 million financing package is a major step forward for digital inclusion in both countries and underscores the critical role of digital infrastructure in fostering sustainable economic development in Africa. As the world continues to recover from the pandemic, the importance of digital connectivity in driving socio-economic transformation is more evident than ever.