The equity investment in TRES Infrastructure Ltd committed by Admaius Capital Partners, a pan-African-focused private equity investor, will drive the scale-up of telecommunication towers in the country, according to officials.
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During the investment unveiling ceremony held on June 12, it was highlighted that the operational expansion of TRES Infrastructure Ltd, the only local licensed tower owner, operator, and developer of shared telecommunications infrastructure, will improve network affordability and connectivity in both rural and urban areas.
This will result from expanding its tower portfolio locally in line with the country’s target to achieve more than 95 per cent geographical coverage over the next years, coupled with the roll-out of 4G and 5G networks across the country.
TRES’ tower infrastructure is used by the two local mobile network operators, MTN and AIRTEL, while also benefitting other local network service providers such as KT Rwanda Networks Ltd.
Marlon Chigwende, the Managing Partner of Admaius Capital, said that they are confident in investing in Rwanda thanks to the country&039;s strong and developing corporate ecosystem.
He further noted that the Pan-African equity investor seeks to accelerate the growth potential of TRES by unleashing not only capital but also expertise.
"Our investment in TRES will help to expand network coverage to rural parts of Rwanda, as well as aid the rollout of 4G, and ultimately 5G over time. In addition to capital, we are bringing experienced towers experts to support in strengthening the TRES business.”
At the ceremony, Venuste Twagiramungu, Chief Executive Officer of TRES, said the company set out in 2020 to become the second tower company in Rwanda to address network issues in the country because of having only one tower operator.
"We want to use our infrastructure to expand connectivity around the country. We want everyone in Rwanda to access flawless and affordable connectivity.”
He commended Admaius’ financial and technical support and organisational capabilities in realising the company’s vision going forward.
Siongo Kisoso, Managing Director of BK Capital, briefly talked about the advisory journey that culminated in the successful deal.
He said: "While there are many reflections to go to, one key point that stands out is that out of more than 60 investors we reached out to, Admaius was the most forthcoming with showing desire and appetite to get the deal done.”
BK Capital partnered with Gahigiro Capital—a local corporate finance and advisory services firm—to offer advisory services for the investment partnership between Admaius Capital and TRES Infrastructure Ltd.
Admaius is a member of Kigali International Financial Centre (KIFC) and is currently managing more than $280m through its Virunga Africa Fund 1. It is headquartered in Kigali, with offices in Nairobi, Johannesburg, Tunis, Cairo, and London.
Nick Barigye, CEO of Rwanda Finance Ltd, said this investment reflects confidence in Rwanda’s economic potential and KIFC’s robust regulatory framework.
"This vision of positioning Rwanda as an ecosystem where capital is domiciled and financial opportunities are available is the right vision to continue championing and we are actors in that ecosystem. We thank you for that trust.”
He added: "Let’s contribute to the economic development of Rwanda and create an impactful and just society, as well as creating more businesses and financing opportunities.”
The telecom towers infrastructure market in Rwanda is characterised by strong and ever-increasing demand underpinned by the country’s growing population seen with the increasing number of mobile subscribers complemented by a steady SIM-card penetration rate, and other services.
Admaius has an investment strategy for Africa of finding opportunities in high-impact sectors that are the drivers of economic and social progress, including digital infrastructure, financial services, FMCG, healthcare, and education.