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Foton trucks: The vehicle maker is opening an assembly plant in Kenya. Photo/LABAN WALLOGA

 

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The Telecom Sector Needs More Players

July 13 2011

The announcement by the Rwanda Utilities Regulatory Agency (RURA) that the number of active cell phone subscribers has dropped, partly reflects, the impact of Rwandatel’s exit from the market. Since then, Rwanda remained with two mobile operators, MTN Rwanda and Tigo Rwanda. RURA, in its most recent report on the sector, said that the numbers slid to 3,730,226 in May this year from 3,777,090 in March as the penetration rate dropped from 36.3 per cent to 36 per cent.

 

Yet RURA insists it will not relent on its ambitious forecasts to attain six million mobile phone users by 2012.

In order to realize the objective, RURA will have to come up with strategies that encourage competition in the telecom market, by way of licensing more players.

 

Rwanda's telecom industry has tremendously changed in the last few years, partly due to Tigo's entry, which broke the duopoly then enjoyed by MTN and Rwandatel.

 

The government, through its fiscal policy, has increased subsidies to the sector by waiving Value Added Tax (VAT) on mobile handsets and import duty on SIM cards to increase penetration of telecommunication services to the lower segments of the population.

 

In order to boost the country's mobile penetration rate, these initiatives need to be supplemented by a liberal market with more players.

This will increase access to telecom services, create more job opportunities and contribute to economic development.

 

 

Angola: Satellite System to Cover Remote Areas

12 July 2011

Luanda — The launch of the first Angolan satellite will create conditions to overcome the difficulties of telephone communication in the intermediate space among some localities of the country, said on Tuesday in Luanda the chairman of the Board of the Angolan Institute of Communications, Mendes de Carvalho.

 

Speaking to the press about the communication systems in the country, the manager said that the launch of the satellite Angosat will ensure that the components of a VSAT communication technology (similar to satellite dishes) is strengthened and contributes to cover all areas in telephone communication.

 

 

Rwanda: BCR Projects Higher Earnings

12 July 2011

Rwanda Commercial Bank (BCR) is set to report a 35.2 per cent rise in profits after tax in the first six months of 2011. In the period between January and June this year, BCR's net profits are expected to increase to Rwf1.3 billion from Rwf961.3 million the same period last year, according to its Managing Director, Sanjeev Anand

 

"It's great we have got our figures for the six months ready. However, they are not yet audited but we are upbeat the bank will be making Rwf1.3 billion from Rwf961.3 million realised during the same period last year," Anand, said last during the launch of the bank's new electronic banking services.

BCR is targeting to make Rwf2.6 billion in net profits in 2011.

 

Anand said the bank this year wants to penetrate the market further by leveraging retail which includes mortgage, loans; SME segment and new products to serve the bank's corporate customers. The electronic banking, which was launched on Friday, will allow the bank's clients to carryout transactions using their mobile handsets.

 

"If a client had to do any transaction, he or she would have to visit a BCR branch, but electronic banking can carry out any transaction using a mobile phone which is a very significant milestone by the bank in reducing queues at bank branches," he said.

He added that the electronic banking system that was available in the market was only information based, meaning a client would only get information on their phones.

 

But beginning next month, the bank intends to unveil new products and clients will be able to make transactions that include paying bills, buying cash power, and transfering money using their mobile phones.

According to Anand, two years ago, the bank's non-performing loans portfolio stood at 20 per cent but today stands at 15 per cent, above the central bank's requirement of seven percent.

 

"We have made significant progress and every bad debt the bank recognises they write it off," he added.

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Tanzania bracing for Zantel 3G

23-Mar-11

Internet connectivity in Tanzania is set to improve when Zantel, a major mobile operator, rolls out its 3G network in April 2011. Zantel's migration to 3G indicates healthy progress in Tanzania's growing mobile communications industry. The company, which operates both fixed-line and mobile phones, is the fourth biggest telecom in the country in terms of a market share at 5.8%, according to market analysis study carried out by competitor Tigo in 2010.   It will become the fourth major telecom to offer direct 3G services, after Vodacom Tanzania, Tigo and Zain Tanzania. Tanzania Telecommunications Company (TTCL) support 3G services via CDMA, a high-quality wireless communication technology.

The 2.5G technology currently used by Zantel limits its market penetration and growth, but the new 3G technology will allow it to become a converged services provider capable of delivering data, wholesale and voice services, the company said.

The new network will allow it to offer high-speed mobile internet access, mobile video-conferencing and videophone, among other services not possible with its existing 2.5G structure.

 

Zantel hopes the improvements will help it score more customers and high-profile clients. It's looking at increasing the corporate clientele, whose work relies on rapid-speed internet.

"In this case, our focus will be on enhancing network quality for an improved customer experience when using our services," Zantel CEO Norman Moyo said in a statement.

 

The new 3G network will be rolled out in phases. Capital Dar es Salaam and Zanzibar will be the first areas to be covered while it's being extended to other parts of the country.

 

3G in Tanzania
Vodacom became the first operator to introduce 3G technology in Tanzania in 2007 and Tigo's study found that Vodacom now enjoys a 34.8% market share.

Zain, a company in which the government owns a 40% stake, launched its 3G services in 2008.

Tigo remains the second largest mobile operator in the country. It introduced 3.5G internet technology in January 2011, which it promised would offer the fastest connectivity in the country.

 

The company, which introduced Tanzania's first cellular network in 1994, is credited for having inspired the voice call price-slashing revolution in the country.

 

Tanzania's broadband growth
Tanzania is identified as one of the sub-Saharan African countries with a stable economy, and is expecting growth of 5.8% in 2011.

Internet usage has skyrocketed over the last few years. About 4.8-million Tanzanians were estimated to be using the internet by June 2010, according to a recent study conducted by the Tanzania Communications Regulatory Authority.

 

This number came against the backdrop of only 11% of the population having access to the internet, which was an improvement from 5% in 2005. Tanzania has a population of more than 42-million.

 

Tanzanian companies have invested heavily in fibre-optic cables that have recently come onto the market. Zantel is a shareholder in WIOCC, a consortium of African groups that owns a major stake in the 10 000km East African Submarine System (Eassy).

TTCL also invested in Eassy. The traditional fixed-line operator connected to the submarine fibre-optic cable Seacom in July 2009, and is a major role-player in internet and mobile services as well.

 

Tanzania's government recognises the necessity of expanding internet connectivity systems as a way of fast-tracking development in the country.

New 3G networks are also expected to roll out in Kenya and Zambia, both bordering Tanzania, in the second quarter of 2011. Airtel is to launch its new 3G networks in the countries via local subsidiaries.

 

 

Zimbabwe: Govt Reviews Used Vehicle Import Ban

July 12 2011

GOVERNMENT has made concessions on the ban on Left-Hand-Drive motor vehicles by December 2015, saying those cars that are already in the country will be allowed to run until their full economic lifespan is exhausted. However, the deadline on used car imports over five-years-old remains October this year as consultations with other stakeholders continue. A Statutory Instrument giving effect to the new concessions and variations will soon be brought into effect.

Transport, Communications and Infrastructural Development Minister Nicholas Goche said other requirements such as reflective triangles and fire extinguishers came into force with effect from this month.

 

Minister Goche said a decision would have been made by October this year on the proposed ban on importing vehicles that are more than five-years-old.

The Minister disclosed this while giving oral evidence before a Parliamentary Portfolio Committee on Transport chaired by Kwekwe Central MP Mr Blessing Chebundo (MDC-T) on the import of Statutory Instrument 154 of 2010 that sought to ban Left-Hand-Drive vehicles among other cocktail of measures.

"On the implementation of SI 154, the effective date is July 1 2011. This operationalises the whole instrument in as far as the requirement to have fire extinguishers, breakdown reflective triangles, reflective material that enhances vision at night," said Minister Go-che.

 

On Left-Hand-Drive vehicles and importation of vehicles over five-years-old, the Government had extended it to allow wider con-sultation following several complaints by the motoring public and other stakeholders.

 

The concession being made was also done considering the economic situation in the country, Minister Goche said.

 

The need to ban vehicles more than five-years-old, said the Minister, came as a result of serious concerns raised by the Ministry of Environment on the pollution of the air caused by such vehicles.

The policy was also in line with the Sadc policy of doing away with the vehicles. South Africa has already banned the use of such vehicles but allows Left-Hand-Drive trucks from other countries to use its public roads.

 

"On the left hand vehicles, this country is right hand driven and motor vehicles are right hand structured. Within Sadc, it has been agreed that we need to progressively reduce left hand vehicles by 2015.

 

"On reflection, it was agreed that it was no longer necessary to ban those that are already in the country," said Minister Goche.

"Therefore we are not going to do anything on those that are already in the country, we are going to allow them to run their economic life until they are unroadworthy."

Mr Chebundo had raised concerns on losses by some car dealers arising from the rush to beat the deadline only to be told that the deadline had been extended.

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Africa: Optic Cable Firm Eyes Three More Countries

13-Jun-11

Nairobi — Cable optic firm Seacom says it will extend services to three more countries - Somalia, Southern Sudan and Burundi - as the demand for high speed Internet increases. The firm's regional head, Mr Julius Opio, said they will first link Burundi by next year. The country plans to instal 1,300 kilometres of fibre network with the help of a Sh840-million ($10.5 million) grant from the World Bank. He said the firm will then launch operations in Southern Sudan and later Somalia within the next two-to-three years.

 

"The main obstacle has been insecurity in Somalia but we have plans to enter the market; Burundi and Southern Sudan will come first," said Mr Opio at media workshop Monday.

 

Building infrastructure

Seacom currently provides cable links in Kenya, which is the headquarters of the East and North African region, Rwanda, Tanzania, Ethiopia, Djibouti and Uganda.

 

Rwanda has just finished laying of a 2,300km cable costing more than Sh4.8 billion ($60 million), while Tanzania continues to lay its Sh13.6 billion ($170 million), 10,000 kilometre-plus cable from a Chinese loan of about Sh8.2 billion ($102 million).

 

Kenya is also investing Sh4.8 billion ($60 million) in the National Optic Fibre Backbone Infrastructure (Nofri).

Some 5,000km of the cable had been laid by June 2010.

 

The East Africa Community plans to link its cables in one network, hence cut the cost of communication by increasing the speed of Internet and capacity.

 

"This is now possible with the landing of the Seacom cables in Kenya and Tanzania, which is linked to the terrestrial backbone cables for high-speed and low-cost international bandwidth," Mr Opio said.

Debate continues to rage over high Internet retail prices even as the Mauritius-based firm plans to widen its reach.

Two years after the undersea fibre optic cables that promised ease access and provide fast Internet went live, consumers in the low end of the market still have nothing to celebrate about.

 

Even though, wholesale prices have gone down from about Sh240,000 ($3,000) for a megabyte (MB) per month in early 2009 to between Sh16,000 ($200) and Sh40,000 ($500), retail consumers are yet to feel the drastic fall.

Internet Service Providers, who buy bandwidth in bulk from broadband - high speed Internet sellers - and repackage it to sell to consumers, still charge highly.

 

Renault sets up car factory in Algeria

11 February 2010

French automobile manufacturer Renault has announced the construction of a car factory in Algeria. Renault would build the factory at Rouiba - a district on the outskirts of the capital Algiers - and would assemble the Logan and Sandero models, which are hot sales in the North African country.

 

In conformity with Algerian regulations, Renault is expected to have a 49 percent stake in the venture, partnering with state-owned SNVI. However, the French manufacturer would be running the site, the French newspaper, Le Monde said.

 

According to reports, Renault is setting up the factory to consolidate its number one position in the local car market. More than 17,000 Dacia-badged vehicles and 39,000 Renaults were sold in 2009, which make up almost a quarter of the Algerian automobile market.

 

The Algerian government has not made any statement to this effect but analysts say it will most likely give a green light because of country's long-time ambition to build up an automobile industry.

 

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