Dimension Data COMESA Preso

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Dimension Data COMESA Preso Powered By Docstoc
					DD Africa
Investment Strategy



COMESA
Sept 2004

James McCormack
Corporate overview

     NORTH AMERICA                          UNITED KINGDOM        EUROPE                ASIA
     Revenue: US$504 M*                     Revenue: US$194 M*    Revenue: US$361 M*    Revenue: US$405 M*
     Employees: 1,000                       Employees: 1,100      Employees: 1,000      Employees: 1,500




                                                            AFRICA                     AUSTRALIA
* Revenue for 12 months to September 2003                   Revenue: US$293 M*         Revenue: US$365 M*
                                                            Employees: 3,900           Employees: 1,000


2   Dimension Data
Combined strengths




                           DD




                      IS        Plessey

 3   Dimension Data
Investment Decision making

      MACRO, MARKET and MICRO ASSESMENT
                       Sustainable market opportunity=political and economic stability
                       Functional infrastructure = workable comms/connectivity
                       Human Resource availability - ICT skills = knowledge workers
                       Favourable overall investment incentives – free trade zones, tax .
                       ICT orientation and readiness assessment– government led
                       catalytic projects - IT Parks and technology control nature
                       Barriers to entry – incumbents positioning
                       SA peculiarity - Nature of the money – donor led or self
                       generated?
      Weighting factors – Macro 60, Market 30 and Micro10
      Overall Score




 5    Dimension Data
Key:
   African Regional Hubs
   African MINI
   African LITE

French speaking Africa-DD France




 7   Dimension Data
                      Revenue Total
                                      Angola
                                      Zimbabw e
                                      Zambia
                                      Namibia
                                      Uganda
                                      Tanzania
                                      Sierra Leone
                                      Saudia Arabia
                                      Nigeria
                                      Mozambique
                                      Mauritius
                                      Lesotho
                                      Kenya
                                      Ethiopia
                                      Eritrea
                                      Botsw ana


40%
              29.5%




      23.5%
What will we do 2003/4

      Plessey                     - $70m

      DDSA            (incl CT)   - $30m

      IS                          - $1,5m

      Total                       - $101,5m




 9    Dimension Data
COMESA Policy Highlights

      Vision,  Goals, Objectives and Strategies
      “COMESA, a sub-region where the effective use and
       application of ICTs enhances and accelerates
       economic growth, social development and regional
       integration and contributes to the achievement of the
       objectives of the African Union and NEPAD.
      liberalized and competitive market
      essential instrument to facilitate intra-COMESA and
       extra-COMESA trade.
      standardisation and economies of scale, factors that
       may be decisive in investment decisions.”



10    Dimension Data
         “developing regulatory and investor-friendly legislation for
          attracting local and foreign investors; promoting
          competition
         the market will be required to share the “burden” of
          universal service/access obligations, the implementation
          of these obligations must be managed in such a way as not
          to become counter productive, so as not, for example, to
          defeat the ends of competition
                  Universal Service Fund
         including sub-regional partnerships, and partnerships
          between public and private sectors
         The importance of assuring investors of a reasonable return on
          investment to raise the attractiveness of the COMESA market;”


11   Dimension Data
         “Skill Development and Transfer of Technology
         Regional governments need to facilitate the development of
          software.
         In environments where private sector is at infant stage and
          government has a dominant role in shaping the economic sector,
          the government has a prime responsibility to encourage the
          adoption of information technology and with it computers as a
          tool.

         Define and publish the mechanisms through which a new entrant
          can access its competitors' facilities and/or unbundled elements

         Promote structural separation of lines of business and encourage
          unbundled costing methodologies

         upon socio-economic strategic plans of the enterprise. If a
          Ministry requires the services of the SOIE, it should buy them at
          commercial prices”


12   Dimension Data
         “These sources have either dried up or are being
          drastically curtailed, and private and local and foreign
          sources are becoming more and more the norm. To get
          access to these resources and complement the little
          available public and own institutional resources, their
          needs to be major changes in the whole approach to
          resource mobilisation, utilisation and
         Stability and predictability of the policy and regulatory
          environment and decisions are critical to investors;
          especially private investors interested in long term
          investments
         Liberalising valued added and other non-basic services;
         Restructuring of Incumbent Operators”



13   Dimension Data
COMESA Policy “lowlights”

      “The policy issue is whether and when should VoIP be openly
       provided. The other issue is when shall the providers of Internet
       services be permitted to rollout their own independent
       infrastructure, as part of the national telecommunications
       infrastructure”
      Price Regulation/ Tariff policy guidelines
                Regulate prices/ tariffs if and when required in the public interest.
      13. Consumer          and user protection
                Take responsibility for consumer protection with regard to ICTs.
                Provide for the resolutions of complaints and disputes by
                consumers and users regarding ICT services.
      gradually privatise “




14    Dimension Data
                      GOOD 2 GO !!!




15   Dimension Data
DD questions

     How    many incumbents in COMESA have started
      unbundling - %?
     What about learning's from other common market
      initiatives eg. EU did this help eastern EU bridge the
      digital divide??
     Are there any incentives outside of the norm in the
      region eg. Registration and payment of taxes in more
      than 2 locations with double taxation agreements=
      reductions in both regimes?
     Issue of rural/universal service is fundamentally
      uneconomic except by prepaid and then is it universal
      access?
16    Dimension Data
                      Questions ???




17   Dimension Data

				
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