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Developing ICT Finance & Investment Partnerships in Sierre Leone
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Developing ICT Finance & Investment Partnerships in Sierre Leone

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Developing ICT Finance & Investment Partnerships in Sierre Leone Presentation Transcript

  • 1. Developing ICT Finance & Investment Partnerships in Sierre Leone Bashir Patel Chief Operating Officer, CTO
  • 2. • Globally, ICT spending is estimated at US$3 Trillion • Growing at an average of 8.9% per annum • Representing 6.8% of Global GDP. • ICT Growth has to be a part of a strategic plan which drives an economy • Essential part of Global Market Participation. Economic Benefit ICTs 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Ireland Finland US Jamaica EUAverage Germany France Italy Denmark % ICT ContributiontoGDP Ireland Finland US Jamaica EU Average Germany France Italy Denmark
  • 3. National Vs Foreign Direct Investment 0 5 10 15 20 25 30 35 40 45 50 China India Brazil Russia South Africa Egypt Sri Lanka PercentageofGDP Investment in Emerging Markets Investment (gross fixed) est. 2009 Foreign direct investment est. 2009 FDI > NI in Many developing Countries
  • 4. Distribution of Foreign Investment 4 0 2000 4000 6000 8000 10000 12000 14000 China India Brazil Russia South Africa Egypt Sri Lanka US$millionsest.2008 Investment in energy (million US$) Investment in telcoms (US$) Investment in transport (million US$) Investment in water & sanitation (US$) Bulk of investment is in Health Energy Transport then Telecoms
  • 5. ICT Investment Distribution by Regions Investment in telecommunications 2008 Investment in African Telecommunications is far behind all regions apart from East Asia - Pacific Africa – USD 12.9 per capita Oceania – USD190.80 per capita
  • 6. Mobile Subscribers Higher Growth Rate in Emerging Markets
  • 7. Global Mobile Penetration
  • 8. Challenges in Emerging markets • Inadequacy of network infrastructures: national transmission backbone, Point of Interconnection (POI), Internet Exchange Points (IXP), etc. • Unreliable and inadequate public electricity power supply • Security of telecommunication network infrastructure and installations: vandalism, theft, etc posed a threat • Difficulties in acquiring land and suitable buildings in rural areas • Lack of adequate funding / Appropriate Budget allocation • Inadequacy of experienced ICT manpower in rural areas • Rural-Urban digital divide remains as rural teledensity still remains relatively low (<5%) for both Mobile telephony and even less for Internet/broadband connectivity • 60-70% Population in Rural /Semi Urban Areas
  • 9. Improved ICT Policy / Regulations Helping to Promote Capital Inflows IMPLICATIONS Converged services means converged regulatory authorities Technologically neutral licensing increasingly in place Focus on Access, Service Quality, Affordability, not technology Govts/Regulators working closer with the Private Sector Promoting Liberalisation, Competition, Privatisation Making more spectrum available thru innovative frequency planning Consumer protection, awareness and education
  • 10. Stimulate Roll-Out in Underserved Areas • Competitive subsidy models • Provide operator(s) with subsidy to build and operate a network in currently underserved areas of the country. Services provided in these areas on a non- discriminatory basis. • Shared infrastructure/consortium models • Provide operators with incentive to cooperate in the development of backbone infrastructure in currently undeserved areas of the country where infrastructure competition is not commercially viable • Incentive-based private-sector models • Provide operators with an incentive to build networks in currently underserved areas through reductions in USF contributions or sector levies.
  • 11. ICT Investment Opportunities Tremendous investment opportunities in ICT Sector • Expanding National coverage to rural areas • Opening markets for New Entrants (if necessary) • Unified Licensing to allow new wireless technologies • e.g. WiMax, Broadband, Rural, 3G • National fibre backbone development • National e-Gov Development – G2G,G2B,G2C • in e-education, e-health e-commerce, e-agri • Liberalisation of Broadcasting sector – new entrants • Applications / Local content developments • Building national data centre
  • 12. Variety of Investment Options • Governments, through Ministries, Public Banks, SSF • Bilateral agencies (DfID, USAID, SIDA, DANIDA, etc) • Other Emerging Markets (mostly India, China, Mid-east) • Multilateral Banks/Agencies (IDA, IFC, WB, AfDB, DBSA, EU) • Private Equity Investors—both African and globally, corporate, consortia and individual • Venture Capitalists • Structured Funds—Equity, Debt, Emerging Markets/African Infrastructure, etc • Commercial Banks—Stnadard Charter, ECO Bank, Barclays, Stanbic, Zenith, UBA, etc • Investment/Merchant Bank—Merrill Lynch, Goldman, Morgan Stanley, CSFB, etc • Vendor Financing—Huawei, Alcatel, Cisco, Nortel, Nokia, Sony, • New Sources—Grameen, Rural Banks, USAFAs, etc
  • 13. Partnering with CTO 4 ICT Investments • CTO, 100-year-old organization, owned by governments, ICT regulators, telephone and ICT operating companies, and ICT equipment manufacturers, vendors and stakeholders • Telecom project development and finance sourcing, support with market entry and development, Facilitation of Access to Key Decision-Makers • Capacity for Market and Sector Research—Nokia-NSN, Ericsson • Specialist knowledge of untapped rural markets of Africa/Asia • Projects undertaken for World Bank & UN agencies, e-NEPAD Commission • Provision of Consultancy and Advisory Services, • Capacity Building Programmes and Training Courses—DfID/BDO • Agile, flexible, business-like approach to operations
  • 14. Conclusions • The World is in a Knowledge Age • Global ICT trends are leading to Convergence • Commonwealth Economies have improved over Last 20 years • Major Opportunities exist for ICT Investment in member countries • Liberalization, Privatization, Competition=Opportunities • New Equity, Debt and Venture Funds Available for Member Countries • ICT Sector Getting Highest Returns on Investment in the Commonwealth Countries CTO is working with Governments, Operators, Vendors, Investors, Funding agencies and others to help to bring about Universal access / connectivity to enhance social and economic development
  • 15. Thank You Bashir Patel Chief Operating Officer Commonwealth Telecom Organisation 64-66 Glenthorne Road London, W6 0L e-mail: b.patel@cto.int Tel: +44 208 600 3802 www.cto.int
  • 16. Working Towards Developing ICT Common Wealth