Pan African Towers, a leading provider of telecom infrastructure in Africa, has announced a strategic investment from Development Partners International (DPI) and Verod Capital.
The investment will serve as a launch pad for the next phase of Pan African Towers’ strategy and will help accelerate the Nigerian telecommunications market.
In an interview with CNBC Africa, Azeez Amida, the CEO of Pan African Towers, discussed the significance of this partnership and how it fits into the company’s overall strategy. Amida emphasized that the investment was long overdue and would enable Pan African Towers to take advantage of the current activity in the telecom sector.
When asked about the attractiveness of the Nigerian market for digital infrastructure, Amida pointed out that Nigeria has a friendly regulatory environment, thanks to the efforts of the Nigerian Communications Commission (NCC). He believes that the boxes are already ticked in terms of the regulatory and business environment, and that Nigeria is a country with a large population and a strong demand for telecom services.
Amida sees the opportunity in the telecom infrastructure space in Nigeria, where there is a significant gap between the number of towers currently in operation and the desired number. According to the NCC, there are currently over 41,000 towers in Nigeria supporting 3G and 4G technology, but the Ministry of Commerce aims to increase that number to 80,000. Pan African Towers plans to close that gap and play for the excess capacity in the industry.
The company’s strategy is to aggressively roll out new towers, triple its tower count in the coming years, and concentrate its portfolio in areas where it is strongest. Pan African Towers is also open to acquisitions and partnerships, and will assess the demands of mobile network operators (MNOs) in order to deliver value to its customers and other players in the telecom sector.
While Nigeria is currently the company’s only market, Pan African Towers is keeping an open mind about expanding into other African markets. However, for now, the focus is on growing its presence in Nigeria. Amida expressed optimism about the outlook for the market, citing the industry’s contribution to the country’s GDP and the upcoming technological advancements, such as 5G.
Overall, Pan African Towers is excited about the Nigerian market due to its large population, technological advancements, and the role it plays as a bridge in the economy. The company recognizes the importance of providing the right telecom services to enable other sectors, such as banking, to thrive.
The investment from DPI and Verod Capital will undoubtedly propel Pan African Towers forward and help it capitalize on the opportunities in the Nigerian telecom sector. With its aggressive expansion plans, the company is well-positioned to meet the growing demand for digital infrastructure and support the development of the telecommunications industry in Nigeria.