Nepad plans $2bn cable

By Damaria Senne, ITWeb senior journalist

Johannesburg, 16 Oct 2007

The New Partnership for Africa`s Development (Nepad) e-Africa Commission has announced plans for a $2 billion, 3.8Tb submarine cable following its split from the private sector-led East African Submarine Cable System (Eassy).

The proposed cable connects Africa to the Americas, Europe and the Middle East, going around the African continent, said deputy executive chairman of the Nepad e-Africa Commission Henry Chasia at a media briefing yesterday.

SA communications minister Ivy Matsepe-Casaburri insists that while separate, the undersea cable project is not new, as it is based on the work done while the public sector was involved in the Eassy project (later renamed the Nepad Broadband Infrastructure Network).

The Nepad e-Africa Commission broke away from the $240 million Eassy project amid allegations it was trying to hijack the private sector-led project. The South African government later announced that Nepad would build its own infrastructure network, competing with other undersea cable initiatives such as Eassy and Seacom.

The South African government also set out a policy that all undersea cables landing in SA have to be majority-owned by South African entities and connect to this cable.

Funding and investment

Ugandan ICT minister Ham-Mukasa Mulira says the public sector will hold 30% shareholding in the cable, with the rest going to private investors.

Potential investors include local ICT companies, private investors and development entities. Companies have the option to invest directly into the project, or to invest in the publicly-held special purpose vehicle, he says.

It is not yet clear what portion of the cable system will be held by South African investors only. However, Matsepe-Casaburri says the new cable system meets South African landing requirements, with at least 60% shareholding by South African or African investors.

Chasia says the Nepad e-Africa Commission held talks with initiators of other submarine cable systems in Africa, including Seacom and Eassy, to discuss collaboration opportunities. Investors are also free to take part in the Nepad initiative and other initiatives if they so wish.

Timelines

The crucial part of the cable will be completed by 2009, in time to meet SA`s 2010 communication requirements, Chasia says.

The Nepad e-Africa Commission is confident it can get the cable up and running within the set timeframes, as it leverages on the work done under the auspices of Eassy, he says. "The design is done and contracts have been made with manufacturers."

Mulira notes the cable system is based on the Kigali Nepad Broadband Network Protocol governments signed last August, providing a regulatory framework for the cable. Twelve countries, including Zambia, Tanzania, Botswana, Rwanda, Uganda, Malawi, Lesotho, SA and Zimbabwe signed the protocol, he noted.

The resolutions made yesterday regarding the cable systems will be taken to the heads of state meeting at the Connect Africa summit for ratification, he says.