IHS Towers Divests Rwanda Operations to Paradigm Tower Ventures: A Strategic Shift in African Telecoms
IHS Holding, a global leader among independent telecom tower operators, has finalized the sale of its Rwanda business unit to Paradigm Tower Ventures. This transaction represents a significant move in IHS’s ongoing strategic review, designed to enhance value for its shareholders by optimizing its portfolio. The acquisition of 100% of IHS Rwanda Ltd., which manages an extensive network of approximately 1,467 tower sites, was completed for an enterprise value of $274.5 million, signaling a robust valuation for the country’s telecom infrastructure.
Strategic Implications and Future Growth in African Telecoms
This landmark deal marks the inaugural investment for Paradigm Tower Ventures, a newly established platform dedicated to the expansion of new build shared wireless infrastructure across Sub-Saharan Africa. Paradigm’s strategic focus underscores a growing trend in the region: the development of robust, shared digital backbone to support the continent’s rapidly expanding mobile connectivity needs. The venture is strongly supported by a consortium of equity and debt finance providers, including Convergence Partners, a prominent African private equity firm focused on the technology sector, and Rand Merchant Bank, a division of FirstRand Bank Limited, which acted as the mandated lead arranger, sole funder, and financial advisor to Paradigm Tower Ventures. Stephen Harris, Co-founder and Chairman of Paradigm, highlighted the strategic importance of this acquisition, noting that “Rwanda represents an exciting market with high demand for shared wireless infrastructure,” indicating the country’s potential for significant growth in mobile penetration and digital services.
The acquisition by Paradigm Tower Ventures not only solidifies its entry into the vibrant Sub-Saharan African telecom market but also positions it to capitalize on the increasing demand for reliable and efficient shared wireless infrastructure. For IHS Holding, this sale allows the company to streamline its operations and focus on other strategic priorities, reflecting a disciplined approach to capital allocation and market presence. This development is a clear indicator of the dynamic investment landscape in African tech and telecommunications, where strategic asset optimization and targeted infrastructure development are key drivers of value and connectivity.
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