Altech explosive in Africa

Johannesburg, 24 Apr 2008

A less stringent regulatory environment has opened up opportunities in Africa that Altech plans to exploit.

Says Altech CEO Craig Venter: "Our crowning achievement for 2007, in terms of Altech`s strategy to expand our geographic presence in Africa, is the recent acquisition of controlling interests in certain companies within Kenya`s Sameer ICT group, for a consideration of approximately R600 million, financed entirely from the group`s cash resources."

The acquisition positions Altech as the largest data operator in Central and East Africa. It sees Altech acquire 51% controlling interests in Kenya Data Networks, Swift Global in Kenya and Infocom in Uganda.

"We view this acquisition as a partnership, where we can co-operate on many fronts to exploit convergence opportunities in the region," says Venter.

Business abroad

In Nigeria, the company has seen an increase in sales of prepaid vouchers from less than 10 million per month in 2006 to over 100 million per month by the end of 2007.

Venter says he expects this growth to continue. "Enhancements, including cellular SIM cards and banking cards, will add further value to the company`s offerings in the financial and telecommunication sectors."

In June 2007, Altech Stream Rwanda was awarded Internet and gateway licences, as well as frequency spectrum in the WiMax bands. The company is currently installing a network in Kigali, Rwanda, that will begin distributing IP-based services over broadband in the 2008 financial year.

The company also has growing interests in South East Asia. "In India, Altech UEC recorded good results for the financial year, proving that sustained investment in the development of advanced set-top box products and associated software is bearing fruit, even as consumer spending comes under pressure."

Venter says the company is poised to capitalise in a region that is expected to surpass the entire African market within one year. "Contractual agreements are already in place with two of the major broadcasting network customers in India."

Altech`s future development strategy is to maintain the growth - locally, in Africa and Asia. "Our recent bold move into Central and East Africa is a significant outcome of this strategy and establishes a new foundation for exciting growth for the company as a whole."