The NEPAD Submarine SPV to be set up by telecom operators in conformity with the Kigali Protocol (the SPV) will be the single largest shareholder with a 30% investment in Baharicom. The NEPAD Submarine SPV will secure at least one third of the bandwidth of the Uhurunet cable in order to meet the current and future bandwidth needs of its shareholders across the African continent.

In October, 2007, the Commission signed a Memorandum of Understanding (MoU) with the promoters of one of the larger initiatives, 5-P Holdings. MoUs between the promoters of the various initiatives are currently being considered and a steering committee will be established to coordinate the implementation of the expanded network.

The NEPAD Submarine SPV will have to raise US$600 million for its 30% share in the Baharicom company. It is envisaged that 50% of this will be equity, and 50% debt. The Commission has entered into discussions with the Pan African Infrastructure Development Fund (PAIDF), with a view to obtaining quasi-equity funding for the NEPAD Submarine SPV’s investment in Baharicom.

The Commission has also held discussions with the Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC) with a view to persuading them to take a similar interest in funding the NEPAD Submarine SPV. The PAIDF is a NEPAD initiative intended to utilize pension funds from various African countries for infrastructure development across the continent. PAIDF has expressed a keen interest to lead the process of funding acquisition.