29 OCTOBER 2007 - AFC SIGNS MOU TO ACCELERATE AFRICA'S PARTICIPATION IN THE DIGITAL AGE

Africa Finance Corporation (AFC), the private-sector led investment bank and development finance institution created to help mobilize and channel capital towards driving Africa’s economic development, is pleased to announce that is has signed a memorandum of understanding with Main Street Technologies to develop The MaiN OnE project, a broadband submarine fibre optic cable project stretching from Portugal along the western coast of Africa to Angola.

The objective of MaiN OnE is to deploy a new broadband submarine fiber optic cable system along the west coast of Africa to increase capacity and lower costs for international and intra-Africa voice, data and internet communications primarily in countries on the West Coast of Africa. The project is to be an open access solution driven by the reality that Africa pays an estimated US $400+ million annually in routing traffic outside the continent. Further, with recent liberalized developments in telecommunications across the continent, the requirement for international voice, data and internet traffic continues to grow.  

The proposed project is a private sector-led initiative - projected to reduce current broadband bandwidth prices by 50% below current rates at inception and by up to 75% or more within the first few years of operation. As an open access solution, the project will promote market- based telecom services for a grossly underserved market.

AFC has been appointed to advise on, structure and arrange a limited recourse project financing for the MaiN OnE project in collaboration with other international financial partners. AFC will also be an equity participant with the responsibility to arrange additional equity for the project.

Funke Opeke, CEO of Main Street Technologies said: “The involvement of AFC in the financing of this project is a fantastic endorsement for the bankability and profit generating potential of an initiative that will make accessing the benefits of the digital age an affordable reality for millions of Africans.  We are delighted to be working with them on this exciting project.”

Austine Ometoruwa, CEO and president of Africa Finance Corporation, comments: “By enabling deregulated private telecom players to have access to open platforms currently monopolised by state PTT we are confident that the anomaly of over $100 per month cost of internet access will rapidly be addressed.  This project will have a transforming effect on the lives of Africans as it will rapidly accelerate the arrival of the digital age in countries where access to the associated technologies is currently prohibitively expensive.