Voice and data connectivity provider Gateway Communications aims to provide Africa with intra-continent voice and data connectivity, and remove the need for calls going from country to country to be rerouted through Europe.
President and chief treasurer Julian McIntyre says the company, which recently placed $100 million in bonds - the equivalent of R733.4 million - hopes to be instrumental as Africa continues growing at a double-digit rate.
The company is already active in 28 countries, but is focused mainly in sub-Saharan Africa. McIntyre says it is seeing phenomenal growth in its core market and the number of customers - potential and current - expanding networks into Africa.
The challenge, he says, is to provide broader network coverage in countries the company is already present in, as well as expand into new markets. McIntyre believes countries going through the process of liberalisation will see growing demand for new services, bolstering the company's potential market.
Gateway's two fastest growing segments are in carrying telecommunications traffic on the continent and building domestic networks to support the roll-out of cellular companies, the backhaul aspect.
Growing market
Countries where it is seeing growth include Nigeria - often touted as Africa's cellular success story - the Congo and countries that have recently been through the process of telecommunications liberalisation such as Kenya.
He says Gateway sees growth potential in expanding in North Africa, East Africa and providing cellular companies with networks that span geographical boundaries, removing the need for calls between countries to be rerouted through Europe.
In East Africa, McIntyre sees potential for satellite-based communications in Sudan and Ethiopia. He also sees growth opportunities in Angola, which is growing rapidly but has limited penetration rates.
While the company follows its customers - such as Celtel, Vodacom and Millicom - when it comes to rolling out, next year it intends increasing its presence in North Africa, where it has already laid the foundations.
McIntyre says in the second half of next year, it aims to make its presence felt in Angola, where it has relationships but does not provide any services. Angola is important, he says, in terms of completing its Southern African Development Community network.
By the end of next year, Nigeria will be ranked among Gateway's top three markets, McIntyre says.
Changing perceptions
Africa is no longer characterised by perceptions of risk and no longer bears the label of 'deep, darkest Africa', he says. Both traditional institutional risk-adverse investors and those seeking to invest in emerging markets are keen to invest in Africa, he adds.
McIntyre says he is proud to have arranged European financing for an African venture and hopes other companies will follow suit. That the company has diverse operations and is a sound, going concern, helped assure investors that any risk was mitigated, notes McIntyre.
Africa is the fastest growing voice and data region in the world, yet has only 12% penetration, he says. Over the last five years, it has seen 100%-plus growth per annum and, while this is set to slow this year to around 40% or 50%, double-digit growth is expected for some time.
"Its only a matter of time before [penetration reaches] 25% and then ultimately 40%."
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