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First Meeting of the Prospective Shareholders in the NEPAD ICT Network SPV Held | 9 April 2008 |

The first meeting of prospective shareholding entities in the Special Purpose Vehicle (SPV), which will develop, own, operate and maintain the NEPAD ICT Broadband Infrastructure Network, was held on 28 March 2008, in Johannesburg, South Africa.  The Network is made up of UHURUNET (submarine segment) and UMOJANET (the terrestrial portion).

The aim of the meeting was to discuss the formation, registration, business model of the SPV, and its role in BAHARICOM.   BAHARICOM is the company that will own and operate UHURUNET.  The meeting also reviewed progress on feasibility studies for UMOJANET.

The NEPAD e-Africa Commission, tasked with developing ICT policies, strategies and projects, and managing the development of the ICT sector in the NEPAD context, is coordinating the NEPAD ICT Broadband Infrastructure Initiative.

Says Dr Henry Chasia, the Executive Deputy Chairperson of NEPAD e-Africa Commission, “We are now moving into a new phase that will result in the UHURUNET submarine cable and associated networks constructed.  We have agreed on joint actions needed to construct UHURUNET and UMOJANET fiber-optic cables.  We have also agreed on the roles of the SPV in these networks.  All parties have resolved to ensure that UHURUNET is constructed by 2010.” 

Estimated to cost USD 1.4 billion, the 45,000 km UHURUNET is an international, NEPAD-led, fiber-optic submarine cable network for Africa, with a capacity of 3.84 terrabits/sec.  When completed, it will surround Africa with landing points in each coastal and Island African country. 

UHURUNET will connect Africa to Europe, Middle East and India and will also interconnect with other international cable systems. The initial funding of USD 30 million required to secure the manufacturing slot has been commited.

UHURUNET will be owned, operated and managed by BAHARICOM, a private company with African and International shareholders. BAHARICOM will exclusively serve the wholesale market.  The SPV will be the single largest shareholder in BAHARICOM.

Benefits
It is envisaged that once implemented, the NEPAD ICT Broadband Infrastructure Initiative will provide quality and affordable telecommunications connectivity to the whole of the African continent. The network will be a major step in interconnecting the African continent and thus helping to bridge the digital divide.  The network will also increase the efficiency and effectiveness in the way Africa does business within the continent and with the rest of the world. 

This first meeting of the SPV shareholders was attended by 22 representatives of telco and non-telco entities from countries that ratified the Kigali Protocol, viz; Lesotho, Malawi, Rwanda, South Africa and Tanzania. The meeting was also attended by representatives from NEPAD, SADC, BAHARICOM and PAIDF.

The meeting followed the coming into force of the protocol on policy and regulatory framework for NEPAD ICT Broadband Infrastructure Network (Kigali Protocol) in February 2008, after being ratified by a majority of the countries that had signed the Kigali Protocol. 

More about the Kigali Protocol
The Kigali Protocol was negotiated by a wide range of stakeholders and was accepted and signed by 12 countries in the Eastern and Southern Africa. The Protocol took account of the NEPAD network principles in the development of a policy and regulatory framework for the region, as well as the structure of Special Purpose Vehicle (SPV).
 
The inaugural signing of the NEPAD Broadband ICT Infrastructure Network was held in Kigali, Rwanda on 29 August 2006, where the first seven countries signed the protocol; namely: Lesotho, Madagascar, Malawi, Rwanda, South Africa, Tanzania and Uganda. Subsequently, Botswana, Zimbabwe, Mauritius, The Democratic Republic of Congo (DRC), and Zambia, signed the protocol.

More notes for editors
1) The shareholders’ meeting was held a day after the first meeting of the Inter-governmental Assembly (IGA).  The IGA meeting discussed the SPV business model, and made preparations for the SPV shareholders meeting.

2) The IGA is provided for in the Kigali Protocol Article 18 and its role is to facilitate the realization of the objectives of this protocol. The IGA plays oversight role in respect to issues of policy and regulatory nature and facilitates the promotion of the NEPAD ICT Broadband Infrastructure Network (including the submarine cable segment).  The Secretariat of IGA is the NEPAD e-Africa Commission.

3) The strategic vision of BAHARICOM is to become the leading provider of wholesale broadband communications capacity to Africa and neighboring regions on a non-discriminatory basis.

For more information and media inquiries, please contact:
1) Samuel Mikenga
Communications Manager,
NEPAD e-Africa Commission
Tel: +27 72 529 6769
E-mail: smikenga@eafricacommission.org