Telecom Egypt (TE) signed an agreement with the European Investment Bank (EIB) — the lending arm of the EU — on Sunday to secure a medium-term loan of €150m to expand TE’s 4G broadband network.
The new developmental facility will be used to support TE in improving its mobile network coverage by deploying around 2,000 new mobile sites and installing additional capacity layers to its existing portfolio of cell towers.
The partnership — currently the EIB’s largest in mobile networks in Africa — will strengthen connectivity across Egypt, including less densely populated areas, and enhance competition and the affordability of services.
“We are very pleased to secure this new credit line with EIB after extensive deliberations, including the presentation of our functional plan to improve our mobile network’s scale; an objective that comes in line with the bank’s priorities for developmental projects. TE will capitalise on its multiple financial resources, newly awarded spectrum, and rich portfolio of valuable products, among other factors, to continue serving its growing customer base and strengthen its competitive position in the Egyptian telecom market,” said Adel Hamed — the Managing Director and CEO of TE.
Flavia Palanza — the Director of EU Neighbourhood Countries at the EIB — said: “This project will help accelerate large scale investment in mobile networks and ensure affordable access to digital services in Egypt. The EIB identifies the digital transformation as a catalyst for innovation, employment, and sustainable economic growth. We are pleased to partner with TE — a dynamic group engaged in its ambitious network expansion programme — to offer a modern and broader access to connectivity throughout Egypt.”
“Digital transformation is a key pillar of this ambitious new phase of cooperation with Egypt. The EU aims to support Egyptian government efforts to secure resilient and affordable access to universal connectivity to the benefits of Egyptian citizens across the whole country. This project shows the commitment of our partners in the EIB to support crucial inclusive digital infrastructure planning in Egypt,” said Tobias Krause — the Deputy Head of the EU Delegation to Egypt.
“We will continue to work hand in hand with our Member States and European financial institutions as Team Europe to support Egypt’s human centric digital transition and to foster a sustainable, connected, and inclusive economy and society.”
