Airtel Rwanda has ceded its 200 towers across the East African country to IHS, Africa’s leading independent mobile telecommunications infrastructure provider. This is part of the telco’s parent company, Bharti Airtel’s plan, to sell and lease back over 1100 towers from IHS in Zambia and Rwanda under a 10-year renewable contract.

The deal is expected to help Airtel drive cost efficiencies throughout the industry through the use of shared passive infrastructure to improve the telco’s service delivery and ensure affordable rates for customers.

“IHS has a proven track record in passive infrastructure management in Rwanda and Africa… The takeover will benefit customers in terms of wider network coverage and more affordable tariffs,” Rwanda’s The New Times quoted Teddy Bhullar, managing director of Airtel Rwanda to have said on Wednesday.

The arrangement will also enable Airtel to focus on its core business, and reduce capital expenditure on the passive infrastructure.took over the management of the towers effective this month.

IHS took over the management of the towers this month. They join more than 21,000 towers, which the company manages across Africa, including 550 MTN Rwanda towers, which it took over last year.

According to Bhullar, the acquisition will reduce the firm’s operational costs and accelerate network roll out, as well as enhance network capacity to ensure better quality service for customers.

IHS Rwanda managing director, Kunle Iluyemi, said the buy and lease deal with Airtel, will boost the development of telecommunications infrastructure in the East African country.

“Affordable connectivity is a powerful tool to extend financial, educational and other services,” he noted.