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Developing ICT Finance & Investment Partnerships in Sierre Leone


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Developing ICT Finance & Investment Partnerships in Sierre Leone

  1. 1. Developing ICT Finance & Investment Partnerships in Sierre Leone Bashir Patel Chief Operating Officer, CTO
  2. 2. • Globally, ICT spending is estimated at US$3 Trillion • Growing at an average of 8.9% per annum • Representing 6.8% of Global GDP. • ICT Growth has to be a part of a strategic plan which drives an economy • Essential part of Global Market Participation. Economic Benefit ICTs 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Ireland Finland US Jamaica EUAverage Germany France Italy Denmark % ICT ContributiontoGDP Ireland Finland US Jamaica EU Average Germany France Italy Denmark
  3. 3. National Vs Foreign Direct Investment 0 5 10 15 20 25 30 35 40 45 50 China India Brazil Russia South Africa Egypt Sri Lanka PercentageofGDP Investment in Emerging Markets Investment (gross fixed) est. 2009 Foreign direct investment est. 2009 FDI > NI in Many developing Countries
  4. 4. Distribution of Foreign Investment 4 0 2000 4000 6000 8000 10000 12000 14000 China India Brazil Russia South Africa Egypt Sri Lanka US$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. 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. 6. Mobile Subscribers Higher Growth Rate in Emerging Markets
  7. 7. Global Mobile Penetration
  8. 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. 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. 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. 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. 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. 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. 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. 15. Thank You Bashir Patel Chief Operating Officer Commonwealth Telecom Organisation 64-66 Glenthorne Road London, W6 0L e-mail: Tel: +44 208 600 3802
  16. 16. Working Towards Developing ICT Common Wealth