India in hi-tech pact with African countries

The Indian government has offered hi-tech cooperation to the Common Market for Eastern and Southern Africa (COMESA) Comtel project, a proposed private regional telecommunications company.

The pledge of support follows the signing, almost two years ago, between the Indian government and COMESA of a memorandum of understanding on trade development. COMESA is an organization based in Lusaka, Zambia, chartered to accelerate Africa’s economic growth through increased trade.

The plan for cooperation calls for India to give both financial and human resources assistance to COMESA for it to speed up the completion of the Comtel project, according to the first secretary at the Indian High Commission in Zambia, Parmod Bajaj.

Meanwhile, Indian High Commissioner to Zambia Yogesh Gupta has been appointed as India’s special representative to COMESA.

Comtel is expected to begin offering services next year. National Telecommunications Operators (NTOs) from 21 African Countries have already agreed in principal to harmonize regional tariffs and network interconnectivity. Comtel is going to interconnect with the NTOs in all the 21 countries.

The NTOs have also agreed to take necessary steps to coordinate pricing and network infrastructures for Comtel. Harmonized tariffs and network interoperability has been seen as a major challenge to the formation of the new company (Comtel) because telecom infrastructure in most African countries are dilapidated.

The Indian government, however, will also assist COMESA in developing regional infrastructure, Bajaj said.

“Following the signing of the memorandum of understanding between the government of India and COMESA in February 2003 on long- term economic and technical cooperation, the Indian government has identified information Technology, biotechnology and regional infrastructure development as potential areas of assistance,” Bajaj said.

The Comtel project has received funding from the African Development Bank (ABD), responsible for financing development projects in Africa. India is the first country to provide both financial and human resource assistance, according to COMESA Secretary General Erastus Mwencha.

Comtel is the outcome of a study on telecom network interconnectivity and tariff harmonization undertaken by COMESA in 1998, after the organizations’ officials realized that tariffs in the region were high because of the poor state of communications infrastructure in Africa.

Comtel has already signed on shareholders and a board of directors. Shareholders include NTOs from the 21 countries (among them, Zambia, Zimbabwe, Egypt, Madagascar and Mauritius) and a strategic equity partner, Anderberg International Inc.

The NTOs will hold 25 percent of the company, Anderberg will have 30 percent, and private investors will have 45 percent.