Upscaling and Financing ICT Infrastructure in Africa

1. Upscaling and Financing ICT Infrastructure in Africa Presentation to 3rd European Forum on Sustainable Development Palencia, Spain, March 29, 2011 Dr. Edmund Katiti, Policy and Regulatory Advisor, and Acting Head of the NEPAD e-Africa Programme

2. THE AU-NEPAD ICT BROADBAND INFRASTRUCTURE OBJECTIVE To ensure thatall African countries are connected to one anotherby a broadband fibre-optic cable network that is, in turn, linked to the rest of the world through existing and planned submarine cables. In Abuja (2003) the NEPAD Heads of State and Government Implementation Committee (HSGIC) decided to prioritise the establishment of such a broadband network The broadband infrastructure programme was under the NEPAD e-Africa Commission, which was mandated by African Ministers responsible for ICT to: • Create an enabling environment , • Structure a Special Purpose Vehicle (SPV), • Identify ways of funding the network. 2

3. UMOJANET UHURUNET

4. Developmental Objectives1. Reduce the Cost of Communication 2. Provide Africa with Reliable and Secure CommunicationDisparity in cost of communication:MonthlyCost of E1;Developed Countries $10-20, African average $4,000Development of a Policy & Regulatory Framework • The development of a transparent policy and regulatory environment needed to: • remove regulatory barriers to the establishment of the cross-border network, • Specify a structure of a Special Purpose Vehicle, and • encourage broad private sector investment in the network. 4

5. DEVELOPMENT OF THE POLICY AND REGULATORY FRAMEWORK • The policy principles were: • The application of open, non-discriminatory and affordable accessto these networks. • Equitable joint ownership of the backbone infrastructure • Acceptance that cross-border terrestrial and submarine cable segments of these networks can be developed, owned, and maintained by Special Purpose Vehicles(SPVs): Legal entities with shareholders. • Basic Broadband Infrastructure be viewed as “public good” • Application of the principle of public private partnerships (PPP) to these networks. These principles were to apply to the submarine as well as the terrestrial segments of the network, and it was proposed that a protocol be signed by countries to underpin their collaboration in developing the network. 5 5

6. SIGNING OF THE KIGALI PROTOCOL UNDER AU AUSPICES The Protocol was signed in Kigali, on 29 August 2006 By November 30, 2006, 12 countries had signed the protocol. Some have ratified while other are in the process of ratifying it. BotswanaLesotho South Africa Mauritius Rwanda Malawi Zambia Madagascar Uganda Tanzania Zimbabwe DRC Protocol came into force in 2008 after in was ratified by more than half of the countries that signed it. Countries that were unable to sign the protocol within agreed timeframe, may now accede since it is now in force: i.e. it has been ratified by more than half of the signatories. Countries outside Eastern and Southern Africa can also accede to the protocol. 6 6

7. KIGALI PROTOCOL: Key provisions on Policy, Legal & Regulatory Aspects Governments undertake and commit to creating favourable conditions for the SPV(s) to construct and/or gain access to existing optical fibre. Governments undertake to refrain from any unilateral and/or collective action that may hinder the attainment of the objectives of the Protocol. Governments undertake to facilitate the licensing of the SPV(s) that will own, operate and maintain the network. Governments undertake, toamend, where necessary, their existing legal, policy and regulatory frameworks, and/or to exempt the SPV(s) from licensing requirements that could inhibit its operations. Governments undertake to charge SPV(s) license fees that will cover only the administration costs incurred by regulators Each Signatory Government has a seat on the Inter-Governmental Assembly (IGA) that oversees the policy and regulatory aspects of the protocol. 7 7

8. Co-Building of ACE Submarine Cable In Oct 2009, Baharicom signed MoU with ACE Consortium to co-build the Africa Coast to Europe (ACE) submarine cable. As co-builder of the ACE/Uhurunet system, Baharicom will reduce the cost of market entry on the West African cost. The ACE/Uhurunet submarine cable system, is led by France Telecom, one of the most experienced submarine cable developers. It will stretch 14,000 km from France to South Africa, providing opportunity for connectivity to every country along the West coast of Africa. Supply contract for ACE/Uhurunet was signed in Paris on June 5, 2010. ACE/Uhurunet will be operational in mid 2012.

9. ACE/UHURUNET SUBMARINE CABLE SYSTEM

10. Discussions are on-going with cable developers (Seacom, TEAMS, EASSy, and LION) for Uhurunet collaboration on the Eastern and Northern Coast of Africa. Biz Plan for Uhurunet East is available and is being shared with interested Parties Investment in Uhurunet being aggressively sought, and several MoUs have been signed with interested Parties Uhurunet will be achieved in segments Segments will be completed at different times Segments may have different specifications and capacities but will operate seamlessly The Way Forward for Uhurunet in East and North Africa 10

11. UMOJANET: Terrestrial Cross-Border Network • Detailed Feasibility Study for Eastern & Southern Africa. • The study focussed on the following: • Identifying all broadband optical fibre infrastructure in region. • Identifying gaps in existing fibre optic infrastructure along the routes of the proposed AU-NEPAD network. • Identifying plans to close such gaps. • Determining cost of leasing fibre optic cable capacity from existing operators / cable owners and building of new fibre optic cable infrastructure where necessary. • Estimating the cost of operating a Regional Operations Centre and data centre from which the entire network would be monitored, managed, and controlled. • Estimating the costs of establishing and equipping nodal points in each country. • Undertaking a detailed study of traffic flow in the network. • Proposing an optimum network in terms of network economics, configuration and costs.

12. Network Design Options and Associated Costs • An entirely new network to be built in the 21 countries in the region. • A network for the 21 countries using a maximum of capacity leased from optical fibre infrastructure owners and a minimum of newly built infrastructure.

13. Available and Required Segments of the Proposed AU-NEPAD Network in Eastern & Southern Africa Status Km % • Operational 17,400 60% • Under Construction 2,300 8% • Planned 6,600 23% • Required new build 2,900 9% Total Km required 29,200 Above figures are thought to be typical of what pertains in other regions of Africa.

14. Umojanet Cross-border Terrestrial Network Umojanet Corporation, a Special Purpose Vehicle (SPV) that will implement Umojanet, was registered in Botswana in March 2010. Umojanet Corporation identified France Telecom/Orange Group as its strategic partner. Umojanet Business Plan for 12 countries in Eastern and Southern Africa was completed in mid 2010. Umojanet Business Plan for 12 countries in West and Central Africa was completed in late 2010. Umojanet Corporation is establishing Domestic Operations companies in all countries where it will operate.

15. Tunisia Morocco Algeria Libyan Arab Jamahiriya Egypt Mali Mauritania Eritrea Cap Verde Niger Djibouti Chad Sudan Senegal Burkina Faso Gambia Central African Republic Benin Nigeria Guinea Bissau Ethiopia Ghana Cameroon Sierra Leone Ivory Coast Rwanda Uganda Togo Kenya Equatorial Guinea Gabon Republic Democratic of Congo Malawi Guinea Tanzania Burundi Congo Comoros Angola Zambia Madagascar Zimbabwe Namibia Mauritius Countries that signed and ratified protocol Botswana Mozambique La reunion Countries that signed but are yet to ratify Countries considering accession to protocol South Africa Umojanet: Extension of enabling environment Countries currently reviewing protocol Countries that are yet to review the protocol

16. Tunisia Morocco Algeria Libyan Arab Jamahiriya Egypt Mali Mauritania Eritrea Cap Verde Niger Djibouti Chad Sudan Senegal Burkina Faso Gambia Central African Republic Benin Nigeria Guinea Bissau Ethiopia Ghana Cameroon Sierra Leone Ivory Coast Rwanda Uganda Togo Kenya Equatorial Guinea Gabon Republic Democratic of Congo Malawi Guinea Tanzania Burundi Congo Comoros Angola Zambia Madagascar Zimbabwe Namibia Mauritius Business Plan completed Botswana Mozambique La reunion Business Plan under development Business Plan yet to be undertaken South Africa Umojanet: Conduct of Business Plans

17. Tunisia Morocco Algeria Libyan Arab Jamahiriya Egypt Mali Mauritania Eritrea Cap Verde Niger Djibouti Chad Sudan Senegal Burkina Faso Gambia Central African Republic Benin Nigeria Guinea Bissau Ethiopia Ghana Cameroon Sierra Leone Ivory Coast Rwanda Uganda Togo Kenya Equatorial Guinea Gabon Republic Democratic of Congo Malawi Guinea Tanzania Burundi Congo Comoros Angola Zambia Madagascar Zimbabwe Namibia Mauritius Implementation Underway – Jan 2011 Botswana Mozambique La reunion Implementation yet to start South Africa Umojanet: Network Implementation

18. Extension of the Policy and Regulatory Framework • In order to get as many countries as possible to accede to the Kigali Protocol, the NEPAD e-Africa Commission in 2010 embarked on a campaign to present and explain the protocol to stakeholders in all regions of the continent. • The campaign will involve a review of the protocol with stakeholders in all regions free to propose amendments to the protocol. • Stakeholder workshops have taken place or are planned as follows: • ECOWAS region – March 15-16, Abuja, Nigeria • ECCAS region – April 20-22, N’Djamena, Chad • North Africa region – September 21-22, Egypt • Regional stakeholder workshops are followed by in-country workshops to obtain country positions regarding review of protocol. • Regional Inter-Governmental Working Committee (IGWC) meetings will be held to obtain regional consensus positions on the review of the protocol before the protocol is amended.

19. Challenges to the Development of the Uhurunet and Umojanet • Fast-tracking the extension of the enabling environment (Kigali Protocol), in order to keep the private sector-led impelementation of the project on schedule. • Expedited licencing of the private sector-led Special Purpose Vehicles (SPVs) undertaking the implementation of the two parts of the project. • Mobilising resources to build: • broadband links in economically challenging regions (e.g. Manu rive basin) • submarine landing station in economically challenging coastal countries.

20. Action Required to Fast Track Implementation of Umojanet and Uhurunet • Political support to fast-track : • Extension of the enabling environment (Kigali Protocol) • Licencing of Umojanet Special Purpose Vehicle • Securing of Landing rights for Uhurunet submarine cable • Mobilising resources required to build: • broadband links in economically challenging regions (e.g. Manu rive basin) • submarine landing station in economically challenging coastal countries.

21. Conclusion The future has arrived . Its in the form of the information revolution Information is like manure; Its most useful when its spread around. Let’s spread it to all parts of the continent. The African Union leaders have agreed to Champion this project and remove the obstacles in order to make this happen. The Project is the only ICT Project that has been selected to be Championed by President Paul Kagame of Rwanda, under President Zuma’s Initiative to spearhead infrastructure development in Africa.

22. For Further Information Contact: Dr. Edmund Katiti Tel: +27.12.841.4661 Fax: +27.12.841.4094 Email: ekatiti@eafricacommission.org