Growth trumps volatility
Demand for capital to drive network expansion, densification and technology upgrades will continue to drive sale leasebacks, new builds and expanding partnerships between towercos and a widening range of customers. While market volatility means investors are putting more scrutiny under business cases and return-on-investment, the industry is directly linked to Africa's economic development.
Economic challenges driving innovation
The tower industry has faced significant economic headwinds, even if they are now easing. Currency devaluation, supply chain disruptions, and rising operational costs have pushed towercos and MNOs to innovate on technology and explore new relationship dynamics. We’re seeing a trend towards more flexible pricing models, including volume-based and inflation-linked pricing, to help share risks and incentivise customers.
Energy remains the indispensable topic
Power remains the single biggest operational challenge and cost driver for the industry in Africa. With unreliable grids and continued focus on sustainability, towercos are investing heavily in alternative power solutions. Solar PV is gaining traction, with companies like TowerCo of Africa aiming to solarize up to 60% of their sites. The industry is also exploring AI-driven energy management systems to optimise power consumption across different generations of mobile technology.
Collaboration is key
A recurring theme throughout the Meetup was the need for greater collaboration between towercos, MNOs, and governments. This should include: earlier and more open communication about future network needs; following best practice approaches to address rural connectivity challenges; engaging with governments to create proinvestment policies and streamline permitting processes; and enabling new partnership models, including JVs, equity stakes and deeper network planning partnerships.
Diversification beyond towers
Towercos are increasingly looking to diversify their offerings even while they prioritise capex on macro towers. This includes: expansion into fibre infrastructure where complimentary to existing sites; preparations for data, switching and processing moving to the edge; offering new power-as-a-service solutions; and exploring opportunities in small cells and in-building solutions.
Data-driven operations
The importance of data analytics and AI in optimising tower operations was emphasized by multiple speakers. Towercos are investing in cleaning up their remote monitoring systems and working with customers to create useable data. The aim is to enable predictive maintenance and AI-driven workflow optimisation. This shift towards data-driven operations is seen as crucial for improving efficiency, reducing costs, and meeting the evolving needs of MNOs.
