Edris Kisambira

 Kampala

 The Industrial Promotion Services (IPS) has joined SEACOM to back the construction of a US$650 million undersea optic fibre cable that will link Mozambique, Madagascar, Kenya and Tanzania with international broadband cables in South Africa, India and Europe (France). SEACOM wants to build the 15,000km long state-of-art cable with other African investors. IPS is part of the Aga Khan Fund for Economic Development (AKFED). SEACOM’s venture, which will be ready for service in 2009, will provide faster, cheaper, broadband capacity for Africa. SEACOM will be one of four submarine cables that are being planned for the eastern seaboard of Africa. Others are the Eastern Africa Submarine Cable System (EASSy), The East African Marine System (TEAMS) and the NEPAD-backed BAHARICOM. High bandwidth at low costs will be a catalyst for productivity and the growth of service industries such as call-centres, back offices and research institutions in Africa. The additional bandwidth offered by the new cable will also contribute significantly to bringing the cost of connectivity down. “The agreements signed today (November 15) make the SEACOM broadband cable a reality for Africa, and with it access to much cheaper, much faster fibre optic links between countries in the south and east of the continent to the rest of the world,” said Mr. Lutaf Kassam, IPS (Kenya) group managing director. “The project will in turn spur economic growth and social development in the region through employment and connecting business opportunities,” Kassam said in a press statement AKFED issued last week. “Ten years ago, very few believed African markets were capable of the tremendous growth experienced in the mobile industry. Today, we see the dawn of a similar revolution in the growth of data communications,” said SEACOM president Mr. Brian Herlihy. East Africa is the only part of the world without access to international cables and is desperate for low cost, high quality, international bandwidth. The estimated cost of satellite bandwidth on a monthly lease ranges from $1,700 to $6,000 per megabit/second per month. The same bandwidth on the SEACOM cable will be approximately 20% of current costs. The investors in SEACOM are IPS (25%), Venfin Limited (25%); Herakles Telecom LLC (25%); Convergence Partners (12.5%) and the Shanduka Group (12.5%). Nedbank Capital, the investment banking arm of Nedbank Limited, was appointed as the Mandated Lead Arranger for all debt funding requirements of the project and the funding will be provided by Nedbank Capital and Investec Bank. Industrial Promotion Services (IPS) is the infrastructure and industrial development of AKFED. IPS has operations in Kenya, Uganda, Tanzania and DR Congo and is also actively pursuing investment opportunities in Rwanda, Mozambique and Madagascar. Outside the East and Central Africa region, IPS also operates in Cote d’Ivoire, Burkina Faso, Mali and Senegal, Tajikistan, Afghanistan, Kyrgyzstan, Pakistan and Canada. “This is a tremendous opportunity for our continent, because the cable gives us the technical capacity for much closer integration into the world economy where Africa will significantly share in the new opportunities and efficiency gains arising from this project,” said Shanduka Chairman, Mr. Cyril Ramaphosa. “We are extremely happy that the investors from South and East Africa have partnered with an international counterpart around our shared vision of linking Africa to the world in the spirit of NEPAD.” SEACOM has already invested more than $10million in the marine survey and engineering of the cable. This advance work has allowed SEACOM to maintain its ready-for-service-date of June 2009. Actual production of the high-tech cable and undersea repeaters starts next week. The statement said SEACOM’s 1.28-terrabytes-per-second broadband capacity would bring prices for businesses, institutions, communities, and individuals down significantly. It will provide sufficient bandwidth to accommodate high definition TV, peer to peer networks, IPTV, and surging Internet demand. SEACOM will also make a direct contribution to meeting the New Partnership for Africa’s Development’s (NEPAD’s) goals of development for Africa’s renewal and its full and beneficial integration into the global economy.