TowerXchange's Sub-Saharan African guide - A country-by-country guide to the Sub-Saharan African tower industry
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Q1 2021 UPDATE TowerXchange’s Sub-Saharan African guide A country-by-country guide to the Sub-Saharan African tower industry
REGIONAL GUIDE AFRICA
Introduction
As of March 2021, towercos own and manage 40.3% of Figure 1: Breakdown of ownership of Africa’s 169,347 telecom towers (Q1 2021)
Sub Saharan Africa’s 169,347 telecom towers. ESCOs
manage power at 19,723 sites, for both towercos and
MNOs. After a few years of relative stability in the
industry, things are changing fast.
Smaller towercos
2,197
75% of towerco-owned towers are owned by the “Big Africa Mobile Networks
Three” of IHS Towers, American Tower and Helios 1,785
Towers, but a number of alternative towercos are Pan African Towers
sprouting up to challenge and complement the existing 1,600
hierarchy. Four towercos stand out, either for their Infratel
IHS Towers American Tower 1,300
formidable management teams and financial backing or 24,126 19,863
because of their successful recent rollouts: TowerCo of Madagascar
1,200
⚫A
frica Mobile Networks: Africa’s fastest growing Atlas Tower/SBA
Communications
towerco, Africa Mobile Networks is a rural specialist 1,095
that has built nearly 2,000 sites from a standing start.
MNOs Helios Towers Gyro Group
Its unique revenue share model, low-cost sites and 101,105 8,576 6,500
Source: TowerXchange
NaaS offering is a potentially disruptive alternative to
the traditional towerco model.
⚫ Eastcastle Infrastructure: Established by Peter Lewis towers across West Africa, including Nigeria, Cote leasebacks in several African markets. Paradigm has
and Pankaj Kulshrestha (the former Eaton Towers d’Ivoire and the Democratic Republic of Congo. been linked to the Airtel Tanzania tower sale and to the
CFO and COO) and currently courting investment from new towerco licence process in Egypt.
African Infrastructure Investment Management, Adenia ⚫ Paradigm Infrastructure: Founded by ex-American
Partners and the IFC, Eastcastle is targeting the build- Tower stalwarts Steve Harris, Steven Marshall and Hal ⚫ SBA Communications: SBA Communications’ entry
to-suit opportunity and plans to deploy 1,950 telecom Hess, Paradigm Infrastructure is targeting sale and into Africa through acquiring Atlas Tower has given the
2 | TowerXchange Issue 31 | www.towerxchange.com
REGIONAL GUIDE AFRICA
INTRODUCTION
American giant a strong footprint to build upon. It remains to reach the pace of new build achieved in South Africa; Now, in March 2020 Helios Towers announces plans to
to be seen whether SBA Communications expands first Atlas Tower remains one to watch. acquire over 2,000 sites from Airtel Africa in Madagascar,
within South Africa or elsewhere on the continent through Malawi, Chad and Gabon. Helios Towers are in advanced
partnerships with other towercos or investors. The sale and leaseback drought since 2016 is over. discussions on another 7,500 sites with more in the
Helios Towers fired the staring pistol on a new phase of longer-term pipeline. New acquirers are also popping up,
Pan African Towers would have made the list, but having M&A in Africa by inking a deal to acquire 1,220 towers like the aforementioned Paradigm Infrastructure and the
lost their CEO to Liquid Telecom Nigeria, TowerXchange in Senegal. Soon after this deal MTN reported it was low profile Telecom Towers Africa.
is waiting to see who will be taking the helm. Similarly, looking at selling some or all of its 13,000 sites in South
Nate Foster continues to operate Atlas Tower outside Africa; a deal which would be transformational for the Of Africa’s major MNOs, Vodacom retain towers in
South Africa, with several sites built in Kenya, but has yet South African telecom tower industry. South Africa, Democratic Republic of the Congo,
Figure 2: Estimated tower counts for selected countries in SSA
Namibia Chad Cameroon
749 2,000 3,737
Malawi Burkina Faso
1,000 2,757
Rwanda Zambia
1,300 3,182
Cote
Uganda Mozambique DRC Ghana Ethiopia Tanzania Kenya Nigeria South Africa
d’Ivoire
4,187 4,400 4,845 6981 7,300 7,776 8,070 32,069 33,837
4,344
Niger
1,853
Gabon Zimbabwe Angola
1,001 3,000 3,318
Congo Brazzaville Madagascar Senegal
871 2,310 4,045 Source: TowerXchange
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REGIONAL GUIDE AFRICA
INTRODUCTION
Figure 3: Estimated tower counts for selected countries in SSA also working with NuRAN to roll out 1,000s of towers
on an OpenRAN basis – opting out of the traditional
948 towerco and OEM market altogether.
IHS Towers 16,481 2,720 2,220 1,757 3,370
Orange has also been instrumental in the growth of
707 720
ESCOs in Africa. While Airtel’s ESCO deal in Gabon was
made necessary because it couldn’t sell its towers,
American Tower 5,823 3,989 3,387 2,831 2,406 ESCOs have formed a positive part of Orange’s strategy
to retain the sites it considers strategically important
426
while outsourcing the tricky business of power
1,220 management. Orange recently activated its Cameroon
Helios Towers 3,821 1,895 978 *subject to closure of
Free Senegal acquisition ESCO agreement with Aktivco, its seventh ESCO market,
236 with a deal freshly inked with ESCOTEL in the DRC.
Africa Mobile 550 180 60
240 180 5
Networks 440 125 5 (Pity the Orange Cameroon Relationship Manager,
dealing with sites leased from IHS Towers
commercially, other sites managed under their
0 5000 10000 15000 20000 25000 30000
Managed with Licence arrangement, 300 sites
managed by Aktivco, 240 Africa Mobile Network sites
Uganda Nigeria Cote d’Ivoire Zambia Liberia
[with perhaps some on an opex basis and some on a
Tanzania Ghana Cameroon Congo B Guinea Bissau
revenue share basis] and now sites running on NuRAN
Kenya Burkina Faso Niger Senegal Non-African towers
OpenRAN base stations!)
South Africa DRC Rwanda Guinea Conakry Source: TowerXchange
The energy headaches that confront telecom networks
in Africa appear to be relenting somewhat, with Helios
Mozambique, Lesotho and Kenya through its Outside Cote d’Ivoire and Cameroon, Orange retains Towers reporting material improvements to their bottom
Safaricom subsidiary. MTN retains towers in Sudan, its towers and has no plans to sell to a towerco. In line thanks to grid connections in Tanzania and DRC.
South Sudan, Benin, Guinea-Bissau, Guinea-Conakry fact, they have been prime instigators of alternatives. Similarly, a site connected to a grid which can provide
and Liberia, and in eSwatini and Botswana through Alongside MTN, Orange are Africa Mobile Network’s energy for 20+ ours a day becomes the perfect site for
its subsidiaries. After their deal with Helios, Airtel will major client, sending 100s of rural build-to-suit sites to hybridisation and battery back-up, enabling towercos
retain towers only in Tanzania. the towerco. And in the DRC and Cameroon they are to cut out diesel generators and refuelling expenses.
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REGIONAL GUIDE AFRICA
Figure 4: Heatmap of tower deals and towerco activity in MENA
Nevertheless, diesel generators and distributed Figure 4: TowerXchange SSA towerco activity and tower transaction heatmap
renewable generation are here to stay, especially as
Africa continues to add 1,000 of new sites each year.
We continue to wait for IHS Towers’ IPO. After first
exploring an IPO in 2018, IHS Towers published a notice
in August 2020 that they were looking to list in New York.
However, since then there has been little reported from
the global towerco giant, in fact, IHS Towers has since
acquired another 1,000 sites in Brazil as well as being
linked to a tower sale in Oman, the licence process in
Egypt and a deal to form a joint venture in Saudi Arabia
to control Zain and Mobily’s 19,100 towers.
Africa’s strong macroeconomic performance and rapid
demographic growth make it a hot spot for telecom
investment. Over the next five years Africa’s population
is expected to grow at a rate of 2.5%, its economy at
3.5% and mobile subscription growth at 3.1% (Helios
Towers Annual Report, 2020). This compares very to
favourably to the developed world. Despite struggling
Towercos own the majority of towers
through lost decades, Africa has had a strong growth
record this century, and its young economies have Towercos own a significant portion of towers
proved surprisingly resilient to the COVID-shock. with at least one major tower deal completed
These factors are driving the resurgence of sale and
Limited towerco activity. No major tower deals
leasebacks and the entry of new capital and new teams
completed
looking to serve the African telecom tower market.
No known towerco activity
TowerXchange provides a country by country analysis
New SLBs or carve outs expected or rumoured
of tower ownership and market dynamics across 24 of
the more active tower markets in sub-Saharan Africa. Source: TowerXchange
5 | TowerXchange Issue 31 | www.towerxchange.com
REGIONAL GUIDE AFRICA
Figure 5a: Multi-country towerco footprints in sub-Saharan Africa
ry
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Gh
Gu
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Bo
Bu
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So
So
Ke
Su
Se
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Ta
Ni
Ni
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Helios Towers
Towerco
Africa Mobile Networks
IHS Towers
American Tower
Figure 5b: Single-country towercos
Ghana Kenya Zimbabwe
African SEAL Eighty Four
Towers Towers Dynamics
South Africa
GyroTowers
Coast to coast Nigeria Unknown
Blue Sky Networks
BCTek Engineering Botswana Senegal Madagascar Country
Sentech
Hostpot Networks Pula Al Karama Towerco of Paradigm Infrastructure
Comco
Communication Towers Towers Towers Madagascar Eastcastle
Eagle Towers
Secured Towers Infrastructure
Sky Coverage
International Tower Corporation
Atlas Towers SA (SBA Communications)
Namibia Angola Uganda
PowerCom ANTOSC Ubuntu Towers
Source: TowerXchange
6 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Figure 6: ESCO footprint in sub-Saharan Africa
Burkina Faso: Aktivco
CAR: CREI
Cote d’Ivoire: Aktivco
Chad: Aktivco
DRC: Sagemcom
Gabon: Energy Vision
Guinea Conakry: IPT, CREI
Liberia: Sagemcom, CREI
Niger: Aktivco
Nigeria: IPT, Biswal, Mantrac, NEC XON and
Energy Vision
Country with confirmed live ESCO(s)
Lebanon: IPT
ESCO RFP live or rumoured to be imminent
Sierra Leone: Sagemcom
Confirmed live ESCO(s) with further RFPs live
or rumored Sudan: Ascot
No ESCO activity yet detected Zimbabwe: Distributed Power Africa
Source: TowerXchange
7 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Figure 7: SIMs per tower in Africa
World 1,373
South Africa 2,862
Gabon 2,930
Mozambique 3,198
Namibia 3,767
Zimbabwe 4,398
Senegal 4,420
Angola 4,469
Madagascar 4,612
Nigeria 5,367
Zambia 5,411
Ethiopia 5,424
Niger 5,782
Africa 5,785
Uganda 5,845
Ghana 5,852
Congo Brazzaville 5,740
Tanzania 6,132
Kenya 6,760
Cameroon 6,959
Burkina Faso 7,386
Rwanda 7,429
DRC 7,662
Chad 7,973
Cote d’Ivoire 8,751
Malawi 8,901
0 2000 4000 6000 8000 10000
Source: TowerXchange
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Angola
Figure 8: Angola – estimated tower count
680
Towers: Population: Subscribers: 38
(World Bank, 2019): (World Bank, 2019):
ANTOSC
3,318 31,825,000 14,830,000
Unitel
SIMs per tower: 4,469 SIM penetration: 46.6%
1,800 Movicel
MNOs: Africell, Angola Telecom, Movitel, Unitel 800 Angola Telecom
Towercos: ANTOSC
ESCOs: None Source: TowerXchange
Angola now has three MNOs, Africell, Unitel and Movicel. become an infrastructure provider, despite possessing a have around 400 sites within three years. They appear well
Unitel has around about two thirds of the market, Movicel universal licence. positioned to assist Africell in its network rollout.
the other third and Africell which is still establishing its
network before launch later in 2021. In order to reach the Whilst infrastructure sharing to date has been limited, a new Grid infrastructure in the country is poor with 85% of sites
level of coverage they are targeting, Unitel needs to add a law came into force in 2016, prohibiting the construction understood to be operating on diesel generators. Unitel in
further 1,000 sites and Movicel a further 2,000. Depending of a new site in close proximity to an existing one. Such particular have put a lot of focus on renewables, looking
on network planning and sharing arrangements Africell will legislation will necessitate infrastructure sharing going at solar hybrid systems on a number of their sites whilst
need the use of 1,000s of sites directly or indirectly. Angola forward. ANTOSC are Angola’s first independent towerco ANTOSC have deployed DG battery hybrids on the first
Telecom, the fixed line incumbent, is reportedly aiming to and have built 38 sites already and the towerco expects to wave of towers they have rolled out.
9 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Burkino Faso
Figure 9: Burkino Faso – estimated tower count Faso. Prior to their opco being acquired by Orange,
Airtel sold their towers to Eaton Towers which acquired
a portfolio of nearly 700 sites on which Orange is now
the anchor tenant. Omatel has the largest portfolio of
500 towers in the country, at approximately 1,000 sites.
Towers: Population: Subscribers: Telecell owns around 550 towers.
(World Bank, 2019): (World Bank, 2019):
2,757 20,321,000 20,364,000
1,000 Eaton Towers had engaged in some decommissioning
and build-to-suit, with American Tower announcing the
acquisition of 677 towers, but its primary investment in
SIMs per tower: 7,386 SIM penetration: 100% Burkina Faso had been in upgrading the energy assets
550
it inherited from Airtel. Orange also reports that it leases
MNOs: Onatel, Orange, Telecel space on just over 100 towers owned by the other
MNOs whilst retaining a portfolio of around 300 sites.
Towercos: American Tower In July 2018, Orange signed a ten-year ESCO agreement
707 with Camusat’s Aktivco, and whilst the number of sites
ESCOs: Aktivco this covers has not been disclosed, TowerXchange
estimate this to be around 500, including some organic
Onatel Telecel growth delivered by Camusat. American Tower has also
There are three MNOs in Burkina Faso; with Onatel American Tower Orange been adding sites at a slow by steady rate.
(part of the Maroc Telecom group) having 42% market
Source: TowerXchange
share, Orange (which acquired Airtel’s opco in the
country) having 44% market share and third placed,
Telecel with 14%. 3G was launched in the country in
2013 and 4G trials were begun by Onatel and Orange 47%, with the overall mobile penetration rate hovering
following the introduction of a new licencing region. around 100%. At the start of 2020 American Tower
However, mobile broadband penetration still sits at only acquired Eaton Towers and all its sites within Burkina
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Cameroon
Figure 10: Cameroon – estimated tower count
240
300 IHS Towers
Towers: Population: Subscribers:
(World Bank, 2019): (World Bank, 2019): IHS Towers (under MLL for Orange)
3,737 25,876,000 21,155,000 400 1,394
Nexttel
SIMs per tower: 6,959 SIM penetration: 82%
CamTel
MNOs: MTN, Orange, CamTel Nexttel 577 Orange
Towercos: IHS Towers, Africa Mobile Networks Africa Mobile Networks
826
ESCOs: Aktivco Source: TowerXchange
There are four MNOs in Cameroon; MTN, Orange, state- AMN, a low cost rural-specialist which offers revenue Cameroon, with the sites featuring a solar-powered
owned CamTel and Viettel-owned Nexttel. IHS Towers shares and opex-based site leasing, have 240 sites carrier-grade GSM base station to enable a remote
owns or manages a portfolio of 2,220 sites having acquired active in Cameroon, with both Orange and MTN. Orange tower with a small footprint.
towers from MTN and entered into a management with have awarded a 300 site ESCO RFP to Camusat’s
license to lease (MLL) contract with Orange. Orange Aktivco. Orange will be deploying a total of 242 rural
manage at least 300 sites of their own outside of their OpenRAN sites, with each consisting of towers
arrangement with IHS Towers, but have also recently and equipment to be installed by NuRAN. NuRAN’s
started working with Africa Mobile Networks. technology is targeted towards rural communities in
11 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Chad
Towers: Population: (World Bank, 2019): Subscribers: (World Bank, 2019):
2,000 15,946,000 7,664,000
SIMs per tower: 7,973 SIM penetration: 48%
MNOs: Airtel, Moov Africa and Sotel
Towercos: Helios Towers* *pending acquisition of Airtel’s towers
ESCOs: Aktivco
There are three MNOs (Airtel, Maroc Telecom and close due to the more complciated regulatory situation.
Sotel) and an estimated 2,000 towers in Chad, a Airtel has committed to a 60 site BTS programme
country where electrification sits at just 4%. Tigo sold with the towerco. To address power issues, Millicom’s
their Opco to Maroc Telecom in July 2019. Plans by Tigo has signed an ESCO contract in the country with
Helios Towers to acquire Airtel’s 539 towers were Camusat’s Aktivco.
announced at the end of March 2020, alongside plans
to buy towers in Malawi, Madagascar and Gabon. As
in Gabon, the Chad acquisition will take some time to
12 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Congo Brazzaville
Figure 11: Congo Brazzaville – estimated tower count
60
Towers: Population: Subscribers:
(World Bank, 2019): (World Bank, 2019):
185 Helios Towers
871 5,380,000 5,000,000
Airtel Congo
SIMs per tower: 5,740 SIM penetration: 93% 426 Azur Congo
Africa Mobile Networks
MNOs: Airtel Congo, Azur, MTN Congo
200
Towercos: Helios Towers, Africa Mobile Networks
Source: TowerXchange
ESCOs: None
There are three mobile network operators in Congo phenomenon in Congo, Airtel having acquired Warid’s with power availability of on-grid sites averaging 15
Brazzaville, all of which are backed by regional players. operation in the country in 2014 vaulting them over hours a day. A rural specialist towerco, Africa Mobile
MTN Congo and Airtel Congo compete with the much MTN to become market leaders. Networks, has built 60 low-cost rural sites for MTN.
smaller Bintel-owned Equateur Télécom (trading as MTN explored an ESCO RFP for their sites in the
Azur Congo). Helios Towers is the sole traditional towerco in Congo country but have pulled the RFP with the intention to
Brazzaville, having closed a deal to acquire Airtel’s relaunch it at a later date.
Negotiations to sell Airtel’s Congolese opco to 384 towers, representing 49% of the country’s towers.
Orange lapsed, but MNO consolidation is not a new Around half of Helios’ sites are reported to be off-grid,
13 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Cote d’Ivoire
Figure 12: Cote d’Ivoire – estimated tower count
174 450
Towers: Population: Subscribers: IHS Towers
(World Bank, 2019): (World Bank, 2019):
1,546
4,344 25,716,000 37,376,000 IHS Towers (under MLL for Orange)
1,000 Moov
SIMs per tower: 8,751 SIM penetration: 145%
Orange
MNOs: Moov, MTN, Orange
To be transferred to fourth licence holder
Towercos: IHS Towers
1,174
ESCOs: Aktivco Source: TowerXchange
IHS Towers own or manage a portfolio of 2,720 towers, then subsequently revoking a license from LPTIC Orange has recently signed an ESCO agreement with
having acquired sites from MTN and entered into a 15 (GreenN’s backer). There are understood to be about Camusat’s Aktivco whilst IHS Towers has invested
years MLL arrangement with Orange in 2013. Number 400-500 sites which were previously owned by the heavily in upgrading energy equipment, with over 70%
three MNO, Moov still retains their tower portfolio which different parties, with a significant degree of parallel of its sites now equipped with solar hybrid solutions.
numbers about 1,000 sites. infrastructure.
The regulator had previously revoked the operating Overall estimations suggest that the market needs a
licenses of smaller operators Comium, Cafe Mobile further 2,000 towers to be added between all operators
and GreenN in the market before awarding and within the next three years. With regards power,
14 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
DRC
Figure 13: DRC – estimated tower count and business models. Orange has an ESCO contract with
ESCOTEL which is close to activiation: ESCOTEL is a
Sagemcom-run ESCO that is backed by Norfund. Orange
is also looking to extend its network by working with
OpenRAN rural specialists: In early 2021 Orange signed
Towers: Population: Subscribers: a deal with NuRAN to roll-out 2,000 OpenRAN sites on a
(World Bank, 2019): (World Bank, 2019):
sole-tenant basis.
4,845 86,790,000 37,123,000
1,895
These are in addition to their deal with Africa Mobile
SIMs per tower: 7,662 SIM penetration: 43% Networks for 550 sites. AMN sites run a single RAN
2,400
but with the option for multiple tenants on the active
MNOs: Africell, Airtel, Orange, Vodacom side.With around 5,000 towers serving nearly 40mn
connections, DRC has one of the highest number of
Towercos: Helios Towers, Africa Mobile Networks SIMs per tower in the world, and with less than 40% of
the population having a mobile phone and 50% of the
ESCOs: Escotel 550 population living in an area with mobile coverage, the
potential for growth is huge.
There are four MNOs in the DRC; Vodacom has 36% of Helios Towers Other operators Grid power is reasonably reliable in Kinshasa, but less
the voice market, Orange 28%, Airtel 26% and Africell has Africa Mobile Networks reliable in Lubumbashi and Goma. Almost all sites
10%. Subscriptions are growing around 2.5% per quarter outside these three cities are off-grid and the delivered
Source: TowerXchange
and consists of over 99% pre-paid SIMs and an ARPU of cost of diesel can be 2.5x more expensive in rural
US$3.38 (ARPTC, 2020). areas, although this has reduced somewhat recently.
Renewables and power hybridisation are essential tools
Helios Towers are the country’s only traditional towerco as well as recently finishing two new backbones. Thanks for operators and towercos alike.
having acquired first Millicom’s and then Airtel’s towers. to its size, underdevelopment and tough operating
Helios have also built around 500 new sites in the country conditions, DRC is home to many innovative site designs
15 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Ethiopia
investment. Ethiopia’s grid is unreliable and many sites
are off-grid, so there is significant demand for energy
management for cell sites within the country. A large
majority of Ethio’s sites use Huawei equipment, but both
ZTE and Ericsson also work with Ethiotel.
Towers: Population: (World Bank, 2019): Subscribers: (World Bank, 2019):
7,300 112,078,000 39,600.00 TowerXchange understands that a carve-out and sale of
Ethio Telecoms ~7,300 is no longer being considered.
The independent telecoms regulator, the ECA, had
SIMs per tower: 5,424 SIM penetration: 35% supported the introduction of towercos to support new
network construction but there is resistance from the
MNOs: Ethiotel incumbent, Ethiotel, which is seeking to lease space on
its existing towers as the country’s sole infrastructure
Towercos: None owner. Ethiotel is establishing a separate tower
management team, but it remains to be seen whether the
ESCOs: None towers can take the additional tenancies required or if the
incumbent can cooperate fairly.
MTN-Telkom, Safaricom-Vodacom-Vodafone and Orange
2021 should see the resolution of Ethiopia’s licence fees and the slowing of any subsequent are all the favoured operators for the new licences, but
long privatization process. This April will see the rollouts remains to be seen. 11 organisations in total expressed an interest in entering
competition for two new MNO licences close, to be the market. At least four independent African towercos
followed by the privatisation of a 45% stake in Ethiotel Although long a telecoms laggard, a surge in investment were known to have established a presence in the
itself. No towerco licences are likely to be awarded from 2013 onwards saw 3G coverage expand from country and were exploring opportunities, although many
this year thanks to savvy lobbying by Ethiotel to below 30% to around 66% today and 2G to 85%. Further of these plans have been put in the cooler.
position itself as an infrastructure provider in the expansion of the network stalled due to a lack of debt
country. The effect on the liberalisation process, capacity by the Ethiopian state to finance further
16 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Gabon
Figure 14: Gabon – estimated tower count upfront capex. The project encompasses a full solar hybrid
system with CDC batteries and is in the process of being
extended to cover 500 sites (of which 40% are off grid,
10% are on unreliable grid and 50% are on grid). Energy
Vision has also been awarded responsibility for all passive
Towers: Population: Subscribers: elements of the sites, with a view to extend this to sites on
(World Bank, 2019): (World Bank, 2019):
unreliable grid.
1,001 2,172,000 2,930,000
Gabon Telecom and Airtel have deployed LTE, and despite
467
SIMs per tower: 2,930 SIM penetration: 135% comments in 2019 by the Telecom Regulator no moves
534 have been made to roll-out 5G. 4G coverage is still largely
MNOs: Airtel, Gabon Telecom limited to cities with rural areas still underdeveloped.
ARPUs are high for Africa, with prepaid customers at
Towercos: Helios Towers* 4,903CFA (US$9.02) and postpaid 48,650CFA (US$89.46),
although postpaid represents less than 2% of the market.
ESCOs: Energy Vision
In March 2021, Helios Towers announced its plans to
*pending acquistion of Airtel’s towers acquire 459 towers in Gabon (the regulator puts Airtel’s
Airtel Gabon Telecom count at 467), with a commitment to 60 further BTS sites.
Regulatory issues held up the deal last time around, and
Source: TowerXchange
There are two MNOs in the market since Gabon Telecom the deal is not expected to close until Q1 2022 and no deal
merged with Moov to create the country’s largest operator value has been announced. No comment has been issued
ahead of Airtel. Since the merger the two have moved for the future of Energy Vision’s ESCO contract on Airtel’s
into rough parity, with Gabon Telecom having 53% market grid is much less extensive in more rural areas leading to sites except to say that Helios Towers would be assessing
share to Airtel’s 47%. 30-35% of the country’s 1,001 sites being off-grid. Energy the arrangement as it would do in any market.
Vision signed the first real ESCO contract in Africa with
Whilst the electricity grid in the main cities is okay, the Airtel, offering power on a fixed monthly price with no
17 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Ghana
Figure 15: Ghana – estimated tower count
Towers: Population: Subscribers: 1,500
(World Bank, 2019): (World Bank, 2019): American Tower
6,981 30,417,000 40,857,000
Helios Towers
5
SIMs per tower: 5,852 SIM penetration: 134% African Towers
209
MNOs: AirtelTigo, MTN, Glo, Surfline, Vodafone, 3,989 Africa Mobile Networks
plus data-only suppliers Surfline, Telesol, Broadband
Home 978 Other
Towercos: American Tower, Helios Towers, African
Towers, Pan African Towers, Africa Mobile Networks
Source: TowerXchange
ESCOs: None
Ghana now has four MNOs after Expresso’s exit from the Ghanaian market, the government will be taking over Tigo as minority partners into which 831 towers were
market. MTN leads the market with 58% marketshare, AirtelTigo. Ghana’s relatively high SIMs per tower ratio transferred. Shortly afterward Eaton Towers closed
followed by Vodafone with 20%, AirtelTigo with 19% and indicates both the requirement for new sites and the their deal with Vodafone Ghana, then American Tower
Glo with just 3%. The MNOs are joined by three LTE only high tenancy ratio in the market. set up another joint venture with MTN to which 1,856
players – Surfline, Telesol and Broadband Home. With towers were transferred. In 2015 Airtel sold its towers
both Airtel and Millicom indicating they wish to exit the In 2010, Helios Towers set up a joint venture with to Eaton. There are now two major towercos active
18 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
GHANA
in Ghana after a series of five tower transactions,
including the acquisition of Eaton Towers by American
Tower in 2020.
TowerXchange Membership
Access the tower industry’s most comprehensive resource centre and network of professionals
In addition to the three large towercos, African Towers
has also built a portfolio of slightly over 200 macro and Detailed market studies Country by country tower counts for the world’s 305 towercos
IBS sites. Parallel Wireless is part of a consortium in Tower ownership in the
German market
the country which has been awarded a project to build
10 Ground based towers: Select Towerco
2,000 OpenRAN sites by the Ghanaian Universal Service 6 Select Towerco
5 1. Deutsche Funkturm
2. Vodafone Towercos Business Model Total Towers Count Last Updated Country Count
Fund, as has Huawei. Africa Mobile Networks, the rural 3. Telxius
4. ATC Europe
1. China Tower Corporation Operator-led 2,015,000 Q220 1
specialist, is working with MTN in the country and has 5 4 5. Telefónica 2. American Tower Pureplay independent 181,200 Q320 20
7 6. Media Broadcast Group 3. Summit Digitel Pureplay independent 136,000 Q420 1
sites now live.
4. Indus Towers [1] Operator-led 127,946 Q320 1
Rooftops:
9 1 5. Cellnex Pureplay independent 52,893 Q320 9
7. Deutsche Funkturm 6. Vantage Towers [2] Operator-led 45,500 Q420 9
3 8. Vodafone 7. Bharti Infratel [1] Operator-led 41,471 Q320 1
9. Telefónica
Whilst grid coverage and availability is good by African
8. Crown Castle Pureplay independent 40,128 Q320 1
10. Telxius
9. edotco Operator-led 32,816 Q220 9
10. SBA Communications Pureplay independent 32,724 Q320 14
standards (with one towerco reporting over 95% of 2
11. Deutsche Funkturm Operator-led 31,200 Q120 1
sites to be on-grid and availability trending towards 1 2 3 4 ... 22
8
above 20 hours a day), electricity prices increased in
the past year meaning that the business case for solar
and hybrid is strengthened and the use of deep cycle
batteries is growing. A
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Become a member of TowerXchange and access a wealth of industry
Find out more at www.towerxchange.com
resources, analyses and experts
19 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Kenya
Figure 16: Kenya – estimated tower count Telkom Kenya sold 715 towers to American Tower in a
sale and leaseback deal which closed at the end of 2018.
In early 2020 American Tower’s acquisition of Eaton
300
Towers successfully closed and through further BTS
American Tower now own 2,406 sites in Kenya. Hundreds
Towers: Population: Subscribers: of Eaton and American Tower sites are within 500m of
(World Bank, 2019): (World Bank, 2019): 2,406
one another which will be decommissioned by American
8,070 52,573,000 54,555,000
Tower as it rationalises its sites, so net growth in sites in
the coming years will understate the rate of new build.
SIMs per tower: 6,760 SIM penetration: 104%
Macro towers predominate in Kenya, with only a single
MNOs: Safaricom, Airtel, Telkom percentage of sites on rooftops. Around 500 buildings are
suitable for DAS with a hundred or so covered already;
Towercos: American Tower, Atlas Towers, SEAL Tower Safaricom are currently operating shared DAS networks.
In March 2021 Safaricom announced plans to launch 150
5,364
ESCOs: None 5G sites across nine towns over the next 12 months.
TowerXchange have also been made aware of a
With the cancellation of their planned merger, Airtel American Tower Other new towerco, SEALTowers a start-up focused on low
and Telkom remain the number two and three MNOs in Safaricom cost compact tower site solutions and hybrid power
Kenya, behind market leader Safaricom. The merger’s innovations. Atlas Towers have entered the market too and
Source: TowerXchange
cancellation has thrown Telkom’s plans into disarray, but signed a deal to work with local MSP Adrian Group. Neither
Airtel has reacted by upping its build to suit demands, new towerco have disclosed site counts in the country.
with American Tower reporting health demand for new
sites. Safaricom is still on course for roughly 500 new 3G Eaton Towers originally entered the market following the
and 4G sites each year. Safaricom had an ESCO RFP for acquisition of Airtel’s sites and had a portfolio of 1,320
~1,200 sites, but its current status is unclear. sites in the country after some build-to-suit additions.
20 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Madagascar
Figure 17: Madagascar – estimated tower count Helios Towers announced plans to acquire 494 towers
from Airtel, with a BTS commitment of 135. Announced
alongside plans to acquire towers in Malawi, the deal is
120 expected to close in Q4 2021. The consideration for the
towers in the two countries is US$108mn,, which given
Towers: Population: Subscribers: the ratio of reported EBITDA between the two countries
(World Bank, 2019): (World Bank, 2019):
509 suggests a valuation of US$42mn or US$117.6k per tower.
2,310 26,969,000 10,654,000
Airtel’s tenancy ratio is 1.3x.
SIMs per tower: 6,959 SIM penetration: 40% Orange also issued an ESCO RFP in the Madagascan
1,200 market, although it has since been withdrawn. The
MNOs: Telma, Orange, Airtel, Blueline operational challenge of operating a distributed tower
network, particularly during the rainy season is not for the
Towercos: TowerCo of Madagascar, Helios Towers* 481 feint hearted, and with significant energy challenges in the
country, (Airtel report that 50% of its sites are off-grid) TOM
ESCOs: None has been extensively evaluating a number of different energy
options including a pilot of a wind project in the country.
*pending acquistion of Airtel’s towers
Towerco of Madagascar Airtel
Orange Blueline
Telma, Orange and Airtel operate in the Madagascan
market, with Blueline the country’s newest MNO. Telma Source: TowerXchange
launched 4G operations in 2015, with Orange and
Airtel following in 2017. In May 2020, Telma claimed
to have completed its LTE-A rollout. Towerco of sites in the country, 55% of Madagascar’s total towers.
Madagascar (TOM), initially spun out of Telma but now Madagascar represents one of the few markets where
an independent towerco operates a portfolio of 1,200 Airtel still retains its towers, with that about to change.
21 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Malawi
Figure 18: Malawi’s slow mobile broadband (Kbps) in 2016 with Airtel launching in early 2018. Afrimax
Malawi predominantly targets business customers, but
was rumoured to be mulling a tower build programme
Kenya of roughly 200 sites to target more retail customers,
depending on acquiring outside financing.
Towers: Population: Subscribers:
Uganda
(World Bank, 2019): (World Bank, 2019):
A recent regulatory review is seeking to promote
1,000 18,628,000 8,901,000
Nigeria further MNOs to begin operating, and has
recommended reducing Mobile Termination Rates
SIMs per tower: 8,901 SIM penetration: 48% from US$0.04 to US$0.02 to bring them into line with
South Africa
international norms, and making more spectrum
MNOs: Airtel, TNM, Afrimax Malawi, Celcom, Access available for the country’s currently inactive MNOs.
Mozambique
Celcom and Access are both potential new entrants in
Towercos: None Malawi, but the regulator has signposted that further
Malawi incentives or changes in policy would be required
ESCOs: None before either could become commercially viable.
0 1000 2000 3000 4000 5000 6000 7000 Perhaps the entry of Helios Towers will enable a
Source: MACRA Report, 2020 healthier mobile market to appear.
There are three active MNOs in the Malawian market
– Airtel, TNM and Afrimax Malawi. Malawi was one of
the few markets where Airtel retained its towers after towers in the two countries is US$108mn, which given
an agreement to sell their towers to Eaton in 2015 was the ratio of reported EBITDA between the two countries
cancelled, but that is about to change. Helios Towers suggests a valuation of US$66mn or US$89.8k per
announced plans to acquire 735 towers from Airtel, with tower. Airtel’s tenancy ratio is 1.4x.
a BTS commitment of 60 more. Announced alongside
plans to acquire towers in Madagascar, the deal is TNM is currently undergoing a project to rollout over 200
expected to close in Q4 2021. The consideration for the towers across the country. TNM launched 4G services
22 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Mozambique
Figure 19: Mozambique – estimated tower count Fibre rollout to the tower has resulted in microwave
backhaul dishes being removed from some sites,
thus freeing them up for further active equipment.
Infrastructure sharing in the country has been limited,
with a just an estimated 50 towers being shared
Towers: Population: Subscribers: between TMCel and Vodacom. The government passed
1,400
(World Bank, 2019): (World Bank, 2019):
a bill mandating infrastructure sharing at the end of
4,400 30,366,000 14,074,000
2018 but without much improvement.
1,800
SIMs per tower: 3,198 SIM penetration: 46% Back in 2019, state-owned MCel (prior to its merger
with TDM and renaming) reviewed a sale of its ~1,000
MNOs: Vodacom, TMCel, Movitel towers. There had also been speculation of a potential
tower sale at Movitel although a formal process was
Towercos: None never announced. Rumour has it that the entrance
of Movitel into the market was part of a government
1,400
ESCOs: None plan to expand network infrastructure and then sell the
assets. If this were the case, the decision to sell may be
more likely to come from FRELIMO than Viettel.
There are three MNOs in Mozambique, Vodacom, Movitel TMCel Vodacom
government-backed Tmcel, and Viettel’s Movitel. The As to who the likely bidders would be in a Mozambique
Source: TowerXchange
entrance of a third MNO Movitel back in 2012 caused tower sale, it is not yet clear – Tmcel’s earlier tower
a radical shakeup of the telecoms sector with the sale announcement didn’t appear to have attracted the
Vietnamese-owned operator rapidly deploying their interest of the continent’s leading towercos. In January
network. Movitel’s widespread roll-out of guyed masts upgraded to lattice structures much of Mozambique’s 2020, TMCel announced plans to raise US$200mn for
is what pushed down Mozambique’s SIMs per tower to infrastructure is not suited to sharing. The country network expansion projects.
such a low level for a country at its level of development. has an estimated 2,600 foundation-based towers,
While some of these guyed masts have since been supplemented by an additional 1,800 guyed masts.
23 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Namibia
Towers: Population: (World Bank, 2019): Subscribers: (World Bank, 2019):
749 2,494,000 2,822,000
SIMs per tower: 3,767 SIM penetration: 113%
MNOs: MTC, Telecom Namibia, Paratus
Towercos: Powercom
ESCOs: None
The Namibian mobile market has been dominated by two has tenancies from all three operators in the market as a designated infrastructure provider in the country. MTC
government owned MNOs: MTC and Telecom Namibia, well as a number of non-traditional tenants. has announced plans to roll out over 524 rural towers
although the entrance of privately held Paratus following from 2018 onwards, with 40 contractors and 17 different
an overhaul of the country’s telecoms regulation has The Communications Regulatory Authority of Namibia suppliers selected for the process.
introduced a new level of competition. has proposed a new regulation mandating infrastructure
sharing and prohibiting operators from setting up In terms of power, the country’s electricity grid is extensive
PowerCom, owned by MNO Telecom Namibia, is new infrastructure where there are existing sites. An and as such, most sites only need rectifiers and battery
Namibia’s first dedicated infrastructure player. Managing announcement from the regulator is expected imminently banks, with back up DGs only on critical sites. Powercom
a portfolio of 311 towers, the company has ambitions to regarding the legislation. The government have also report that only two of their 311 sites is off-grid. PowerCom
integrate further assets into its portfolio. The company introduced a network facility license category to regulate is exploring the option of working with an ESCO.
24 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Niger
Towers: Population: (World Bank, 2019): Subscribers: (World Bank, 2019):
1,900 23,310,000 10,986,329
SIMs per tower: 5,782 SIM penetration: 47%
MNOs: Airtel, Moov, Orange, Sahelcom
Towercos: American Tower
ESCOs: Aktivco
There are four MNOs in Niger; Airtel, Moov, Orange and has been fairly modest, Airtel’s recent turnaround in
Sahelcom. Airtel sold their portfolio of 600 sites to Eaton, profitability in the African market, coupled with them
with the transaction closing in 2017. Orange sold out to obtaining a 4G license means that American Tower is
a local minority investor at the end of 2019. In early 2020 already seeing more build-to-suit activity, American Tower
American Tower announced it had completed a deal to now own 720 sites in the country.
acquire all of Eaton Towers’ sites in the country.
Over 50% of the country’s towers are off-grid. Orange
recently signed an ESCO contract with Camusat’s Aktivco
covering around 500 sites. Whilst new build in the market
25 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Nigeria
Figure 20: Nigeria – estimated tower count
550 440
IHS Towers
Towers: Population: Subscribers: American Towers
(World Bank, 2019): (World Bank, 2019):
6,000 Pan African Towers
32,069 200,963,000 172,730,000
BCTek Engineering
200 Communications Towers Nigeria
SIMs per tower: 5,367 SIM penetration: 86%
500 75
700 Hotspot Networks
MNOs: Airtel, Glo, MTN, 9mobile 16,481
1,300 Other small Nigerian towercos
Towercos: IHS Towers, American Towers, African Glo
Mobile Networks, Pan African Towers and other NATCOM
smaller Nigerian towercos 5,823
Africa Mobile Networks
ESCOs: Renewables Watts, IPT PowerTech,
Source: TowerXchange
Mantrac
There are four GSM mobile network operators in the with 172.7mn connections among a population of 201mn are in Nigeria, and over US$2.5bn has been spent by
Nigerian market, namely MTN, Glo, Airtel and 9mobile (World Bank, 2019). towercos to acquire towers there. Towercos have proved
(formerly Etisalat Nigeria). In addition to the four GSM their ability to deliver 99.9% uptime in challenging grid
players there are two CDMA operators and a host of It’s the oldest growth independent towerco market in conditions in Nigeria. Nigeria is not just a benchmark
LTE-only players.Nigeria is a benchmark tower market Africa; towercos have been building towers in Nigeria for African towers, its proof of the efficacy of the
for many reasons. It’s the largest mobile market in SSA, since 2006. Almost half of SSA’s towerco-owned towers independent towerco model in any emerging market.
26 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
NIGERIA
American Tower entered the Nigerian market in 2014 country, replacing diesel generators with solar hybrid
following an acquisition of Airtel’s 4,700 towers, whilst solutions on over 10,000 towers through five different
IHS Towers acquired the portfolios of Etisalat and MTN contractors (now three). The towerco is continuing to
in the same year. IHS Towers has further consolidated explore further green and energy efficiency solutions
its position in the market, acquiring HTN Towers and are looking now at options to supply power beyond
portfolio of 1,211 sites as well as sites from Hotspot the tower which may ultimately require a tripling of the
Network. IHS Towers’s acquisition of HTN Towers also energy generation capacity of some of their sites. Pan
included a MLL contract for SWAP’s 368 towers, IHS African Towers are also working with an ESCO partner
has however since terminated the agreement. Pan to switch away from diesel.
African Towers has around 1,300 towers in the country.
IHS Towers has a license to deploy fibre in Nigeria and
A deep recession and the devaluation of the Naira they are starting formulate their fibre strategy, having
had a major impact on Nigeria’s MNOs with knock on identified about a third of their towers which they think
effects for their towerco partners. Unable to service a have a good business case to deploy fibre to. Four
loan, Etisalat’s opco in the country was taken over by other companies hold infraco licenses in the country
its creditors and rebranded to 9mobile. 9mobile is still which enable them to deploy fibre. Advert
seeking a new buyer but has been raising capital an
investing in its network again.
In 2019 Africa Mobile Networks got their first Nigerian
site active. AMN is a low-cost, rural-site specialist
which operators on both a revenue share and
traditional opex-model. They have a deal with MTN
to deliver 420 rural sites before the end of 2020, and
will soon be reaching a scale similar or larger than the
longer tail of independent towercos already active in
Nigeria. They have since added 9mobile as second
tenant on some sites.
IHS Towers has invested heavily in upgrading power
systems through their ‘Big Five’ initiative in the
27 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Rwanda
Towers: Population: (World Bank, 2019): Subscribers: (World Bank, 2019):
1,300 12,626,000 9,658,000
SIMs per tower: 7,429 SIM penetration: 76%
MNOs: Airtel, MTN
Towercos: IHS Towers
ESCOs: None
There are now two MNOs in the Rwandan market IHS have announced that they are assessing solar farm
following Airtel’s acquisition of their larger rival, Tigo opportunities in Rwanda that could potentially supply
in early 2018. The new unit moved ahead of their power to the national grid in the first ‘energy swap’ model
competitors, MTN, in terms of market share. to be used in Africa.
IHS Towers has acquired both Airtel’s and MTN’s Rwandan Of all the SSA regions, Rwanda is showing some of the
towers and, after having added build-to-suit towers and strongest promise in small cells and DAS making it a key
undertaking decommissioning work, now owns a portfolio target for such companies looking to enter Africa; IHS have
of 948 sites. As a small market, new build is limited and explored shared DAS.
decommissioning is still required.
28 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Senegal
Figure 21: Senegal – estimated tower count Interestingly, Senegal’s number three MNO had previously
signed a deal to sell its towers. In 2016 local towerco Al
Karama Towers announced the acquisition of 450 towers
625 from Expresso Telecom. Since then, the total number of
Expresso sites has swelled to 625 but the deal is yet to
Towers: Population: Subscribers: close, leaving an opportunity open should Helios Towers
(World Bank, 2019): (World Bank, 2019):
want to also expand inorganically in Senegal.
4,045 16,296,000 17,880,000
The potential for lease up in a three-player market is
SIMs per tower: 4,420 SIM penetration: 110% acceptable for a towerco, and the option for the entry of
2,200
a fourth MNO provides some upside. There have been
MNOs: Sonatel, Expresso, Free 1,220 reports that a joint venture between South Korea’s SK
Telecom and Middle Eastern firm CKG Group had applied
Towercos: Helios Towers (pending deal closure) for a fourth MNO license in the country, in a bid to access
Senegal’s nascent LTE market. There were also three ISP
ESCOs: None licences issued in 2017.
4G growth in the country has been limited so far. Expresso
Senegal has a young, growing and increasingly urbanised Sonatel Expresso is yet to launch its 4G after receiving a licence last year,
population with high GDP growth. There are 17.9mn Helios Towers* and the COVID-19 crisis disrupted its planned March
mobile connections in the country, these are split between * pending closure of acquisition from Free Senegal launch. Free Senegal received its 4G licence only in
9.9mn with Orange, 4.4mn with Free and 3.6mn with third- December 2018, shortly after Sonatel launched its 4G
Source: TowerXchange
placed Expresso. network in September 2018. The growth of 4G offers a
promising source of growth for lease-up and new site
First placed operator Sonatel, in which Orange has a workforce resistance. Senegal is not included in Orange’s development for Helios Towers.
controlling stake, had reportedly looked into a sale of current ESCO pipeline, and so their towers may remain an
its towers previously but talks failed, reportedly due to attractive acquisition target for Helios Towers.
29 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
South Africa
Figure 22: South Africa – estimated tower count
235
236
240
700 MTN
Towers: Population: Subscribers: 1,095
13,000
(World Bank, 2019): (World Bank, 2019): Vodacom
33,873 58,558,000 96,972,000
Gyro Group
2,831
American Tower
SIMs per tower: 2,862 SIM penetration: 166%
SBA Communications/Atlas Tower
MNOs: MTN, Vodacom, Telkom, Cell C, Rain Cell C
Sentech
Towercos: American Tower, SBA Communications/
6,500
Atlas Tower, Helios Towers, Gyro Towers, Sentech, Helios Towers
Eagle Towers, Blue Sky Towers + ~20 other middle- Other smaller towercos
9,000
market towercos
Source: TowerXchange
ESCOs: Abbott Technologies
There are five MNOs in the South African market – South African market since Cell C sold their portfolio position to monetise their towers. Disagreements over
MTN, Vodacom, Telkom and Cell C, with new data to American Tower back in 2010; with Cell C currently lease rates have now been resolved and American
focussed MNO, Rain, having recently launched. Cell on the brink of insolvency. Telkom has carved out Tower is now leasing and building sites for South
C is in the process of shutting down its network their tower business into a separate unit, Gyro Towers Africa’s other MNOs again.
and switching to a roaming agreement with MTN. in order to better commercialise its 6,500 towers.
Towercos have struggled to get a foothold in the Rumours have arisen lately that Gyro are now in a Vodacom has developed a successful commercial
30 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
SOUTH AFRICA
towerco business model in house, including a platform a joint venture between Helios Towers and local fibre- a steel and grass model more akin to the developed
on which other frequency holders can view available player Vulatel. They acquired 100 towers when they markets of Europe and the U.S. with power managed
space on Vodacom sites. Towercos have long been bought SA Towers, as well as a pipeline of around 200 as a pass through. Towercos have begun to eye up
eyeing up MTN’s portfolio of 13,000 sites and the more. In May 2020, Helios Towers agreed to purchase the fibre market in South Africa, with American Tower
operate has now announced plans to monetise its 65 sites from Eagle Towers and work together on future signing a partnership with fibreco, Frogfoot, and Helios
towers some time in 2021. site development. Towers partnering with Vulatel.
A long tail of build to suit towercos have emerged in The power grid is robust and widespread in South 5G spectrum is being auctioned in an unusual way in
South Africa, headed by the rapidly growing Atlas Tower Africa, with MTN reporting that all but 53 of their sites South Africa with “Tier 1” MNOs, Vodacom and MTN,
which has been acquired by SBA Communications. SBA are on-grid, however the reliability has recently suffered excluded from some of the auctions to make way for
Communications had until 2020 been a strictly western with Eskom forced to use rolling blackouts to manage Telkom, Liquid Telecom, Cell C and others in “Tier 2.”MTN
hemisphere towerco, but now owns Atlas Tower’s demand. Battery theft has compounded the problem, is challenging the process in court. Plans to create a
portfolio of over 1,000 sites in the country. prompting Vodacom to issue a 1,140 site ESCO Wholesale Open Access Network (WOAN), which would
RFP. Unlike the majority of their sub-Saharan African use 5G spectrum to create a wholesale network not
Helios Towers South Africa launched in early 2019 as counterparts, South Africa’s towercos tend to operate owned by any existing MNO continue.
Advert
31 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
Tanzania
Figure 23: Tanzania – estimated tower count
340
715
Towers: Population: Subscribers:
(World Bank, 2019): (World Bank, 2019): Helios Towers
7,776 58,005,000 47,685,000
Airtel
1,500
Halotel
SIMs per tower: 6,132 SIM penetration: 82% 3,821
Tigo/Zantel
MNOs: Tigo and Zantel (owned by Axian Group),
Vodacom, Airtel, Haltoel, TTCL, Azam Other
Towercos: Helios Towers 1,400
ESCOs: None Source: TowerXchange
Helios own nearly 4,000 sites in Tanzania having acquired deal, Millicom and Helios formed a joint venture in which which owns Madagascar’s TELMA and TowerCo of
both Vodacom and Millicom’s portfolios in the country Millicom held a 40% stake, the 40% stake was then Madagascar. Axian has investments across Africa and
as well as Zantel’s mainland sites. In the Vodacom restructured into a shareholding at Helios’ group level. recently agreed a tower sale in Senegal to Helios Towers.
transaction, Vodacom sold 100% equity in the towers Axian plans to expand Tigo and Zantel’s coverage,
but obtained a 24% stake in Helios Towers Tanzania, a Millicom has now consolidated Zantel into its Tigo especially 4G. Zantel retains its towers on Zanzibar,
stake which Helios has since purchased. In the Millicom Tanzania brand. Millicom has sold out to the Axian Group, which may now come to market.
32 | TowerXchange Issue 31 | www.towerxchange.comREGIONAL GUIDE AFRICA
TANZANIA
In addition to Tigo, Vodacom, Airtel and Zantel, Halotel contributing factors to the calling off of the deal was continuing apace in Tanzania, materially reducing Helios
and TTCL are present in the market, with each of the the introduction of a new legal requirement for telecom Towers costs in the country. At over 20 hours a day
main MNOs dominant in a different part of the country. companies to list a 25% stake on the Dar Es Salaam stock grid power, battery backup and hybridisation become
Halotel has been particularly aggressive in their national exchange. In May 2019 Airtel announced a request for extremely attractive.
rollout, driving significant additional tenancies to Helios interest for 1,400 towers following the rescindment of the
Towers. Azam Telecom became the newest MNO to be local listing requirement. Ex-ATC staff backed Paradigm The Tanzania Universal Service and Access Fund is
awarded an operating license and expects to start rolling Towers has been linked to the deal, although there has financing the building of over 100 rural sites a year. Each
out its network imminently. Smart have exited the market been no official movement since the original request. of the three main MNOs have been in a RANsharing
but retain 40 unwanted towers. agreement since 2016 to improve coverage in rural
Helios report that approximately 80% of their towers in areas. To enhance their rural coverage, TTCL are working
In 2016, Airtel agreed the sale of the 1,350 sites to the country are on-grid, with grid availability currently with Fariwaves to build 13 low-cost rural sites based on
American Tower, but the deal was cancelled. The biggest around 20 hours per day. Grid connections are Fairwaves’ OpenRAN technology.
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