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Infrastructure awards highlight development

By Faranaaz Parker, ITWeb Junior copy editor
Johannesburg, 13 Nov 2008

Specialist investment communications firm Africa Investor (AI) held a gala ceremony in Sandton this week, honouring over 200 attendees who have contributed to infrastructure development in Africa.

Three of the companies honoured at the event were involved in bringing Seacom's $650 million, 15 000km fibre-optic cable to fruition. The undersea cable will link southern and east Africa with India and Europe which, investors hope, will bring down the cost of broadband and boost socio-economic development on the continent.

“Seacom is honoured by the recognition; Seacom took major risks in funding such a large project and was able to bring the project from concept to financial close in under one year. Seacom is now eight months away from being ready for commercial service and was honoured to be part of such a special occasion,” said Brian Herlihy, Seacom president.

Linking Africa

The Africa Investor Infrastructure Awards seek to highlight exceptional business practices and economic achievements across the infrastructure spectrum in Africa. “These awards broaden the consciousness of African infrastructure as a commercial asset class in Africa,” said Hubert Danso, AI vice-chairman.

The awards were part of AI's Infrastructure Project Summit and brought project sponsors from across Africa to pitch to investors. According to Danso, the event had the support of the African Union (AU), whose representatives will take delegates' recommendations on infrastructure development to heads of state at the AU summit in 2009.

Among the other projects recognised at the event were the $300 million toll road upgrade in Lagos by Lekki Concession Company, a Nigerian concessionaire; and TAV Tunisie SA's building of two airports in Tunisia, at a cost of $940 million.

"The awards demonstrate the extent of which infrastructure development in Africa is making a positive impact on growth across the continent, while at the same time delivering competitive returns for investors," said Dr Ken Kwaku, director of African Investment Advisory.

Triple threat

Herakles Telecom was named Sponsor of the Year for its role in bringing the Seacom fibre-optic undersea cable to fruition. The New York-based development group was the sponsor that provided the venture capital and organised the development of the project.

AI also singled out Nedbank for the ICT Deal of the Year award. Nedbank Capital, the investment banking arm of Nedbank Limited, was the debt arranger and lead debt provider to Seacom.

Bell Dewar, formerly Bell Dewar & Hall, received the Africa Investor's Legal Advisor of the Year award. The firm provides legal services to Seacom.

Speaking on the success of Seacom's partners at the awards, Danso said: “They had very passionate, dedicated people and sponsorship from around the continent. They are not only delivering a good product but also mobilising interest and capital from outside Africa, for infrastructure in Africa.”

He also said Africa was benefiting from a flight to quality, with investors fleeing high-risk environments for ones perceived to be safer.

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