• French infrastructure fund STOA has made a $27 million equity investment in Atlas Tower Kenya (ATK) to fund the company's expansion and a transition to sustainable energy.

• The capital will directly fund the deployment of solar power and battery storage systems across ATK's 450-tower network, aiming to reduce diesel consumption, which constitutes 20-40% of operational costs for tower companies in Africa.

• The investment strengthens ATK's position in the Kenyan telecom infrastructure market, where it competes with IHS Towers (approximately 2,500 sites) and serves major mobile network operators, including Safaricom and Airtel.

French infrastructure investor STOA has completed a $27 million equity investment in Atlas Tower Kenya (ATK), which will accelerate the tower company's transition to sustainable energy solutions and expand its competitive position in Kenya's telecommunications infrastructure market.

The investment is expected to fund the deployment of solar power and battery storage systems across ATK's network of over 450 tower sites, directly addressing the  operational costs from diesel dependency that affect tower companies across Africa. This green transition represents a shift to enhance margins while meeting increasingly required environmental standards in the telecommunications sector.

Marie-Laure Mazaud, CEO of STOA, stated in a release: "This investment fully aligns with STOA's mandate to promote sustainable infrastructure. We're enabling Atlas Tower Kenya to increase solar energy usage and battery storage systems across its network, reducing diesel consumption and the company's carbon footprint."

The Kenyan tower market, where IHS Towers operates approximately 2,500 sites, is facing increasing pressure to adopt sustainable practices while maintaining reliable service for mobile network operators, including Safaricom, Airtel, and Telkom Kenya.

Nathan Foster, CEO of Atlas Tower Kenya, emphasized: "This partnership will accelerate our infrastructure deployment while focusing on more efficient green energy production. Ensuring reliable, sustainable operations helps us maintain our position as the preferred infrastructure choice for our clients."

The green energy initiative comes as telecommunications infrastructure companies across Africa seek to balance expansion with operational efficiency, particularly through reducing diesel consumption - typically representing 20-40% of operational costs for tower companies in the region. The transaction remains subject to standard closing conditions, including regulatory approval from Kenya's Competition Authority.

STOA is an investment fund dedicated to financing sustainable and resilient infrastructure in emerging markets, with €650 million committed across 22 portfolio companies. Atlas Tower Kenya owns and operates more than 450 telecommunication towers across Kenya, providing essential infrastructure solutions to mobile network operators since 2019.

By Cynthia Ebot Takang