Aga Khan Fund for Economic Development June 2006 AKFED Copyright © October 2007 Aga Khan Fund for...

Aga Khan Fund for Economic Development

June 2006AKFED Copyright © October 2007

Aga Khan Fund for Economic DevelopmentAga Khan Fund for Economic Development

Integrating Central Asia into the World Economy:

The Role of Energy and Transport Infrastructure

October 21 - 23 2007




AKFED GLOBAL PRESENCE

East Africa& Indian OceanKenyaUgandaTanzaniaRwandaMozambiqueMadagascar

Middle EastSyria

South AsiaPakistanBangladesh

Central AsiaTajikistanAfghanistanKyrgyzstan

Canada West AfricaCôte d’IvoireSénégalMaliBurkina Faso

Central AfricaDem. Rep. of the Congo




About AKFED

Industrial Promotion Services

Tourism Promotion Services

Media Services

Financial Services

Aviation Services

For profit agency involved in long-term investment

Over 90 project companies in 5 sectors

More than 30,000 employees




AKFED ‘s Approach to Development

Entrepreneurship promoted with economically sound enterprises in the developing world

Long-term investments with:• Strong equity positions• Provision of management expertise

Investments in fragile and complex environments:• Prospects of improving the lives of people

Profits entirely reinvested in further development initiatives




AKFED in Central Asia Tourism:

• Islamabad Serena Hotel + Swat/Gilgit• Kabul Serena Hotel• Dushanbe Serena Hotel• Khorog Serena Inn

Financial Services:• Habib Bank (Pakistan, Afghanistan)• First Microfinance Banks/Microfinance programs

(Pakistan, Afghanistan, Tajikistan, Kyrgyzstan)• Kyrgyz Investment and Credit Bank (Kyrgyzstan)• Insurance companies (Pakistan)

Industry/Infrastructure• Pamir Energy (Tajikistan)• Indigo (Tajikistan)• Roshan (Afghanistan)




AKFED’s Regional Partners

TeliaSonera:• Publicly traded Scandinavian telecommunications company,

with a large footprint in the Caucuses and Central Asia;• Co-shareholder at Roshan (Afghanistan) and Indigo (Tajikistan)

Monaco Telecom International/Cable&Wireless:• 37.25% investor in Roshan / Technical partner

Asian Development Bank (ADB):• Lead partner in senior debt financing in Roshan ($70 million)• Committed to finance private projects with AKFED

DEG, PROPARCO: • $30 million financing in Roshan

IFC and World Bank:• $>15 million Financing/grants in Pamir Energy

Norfund, FMO, IFC: • >$30 million financing to Serena Hotels in Afghanistan and

Pakistan




Telecom Sector – Our Experience in Central Asia The largest partnership in telecoms in the region

Roshan (Afghanistan):

• 1.8 million customers

• Largest coverage (200 cities, rural areas, border roads)

• Largest private sector employer – over 20,000 direct & indirect employment

• Largest taxpayer, representing 6% of the government’s budget

• Largest private investor with over $350 million investment by end 2007

Indigo (Tajikistan):

• 600,000 customers

• Largest coverage including remote areas

• Some $70 million investment by end 2007




End 2007 Estimated

Roshan (Afghanistan)

Indigo (Tajikistan)

Total

Investment $350 mio $70 mio $420 mio

Customers 1,800,000 600,000 2,400,000

Coverage 200 cities45% populationAll major roads

90% of populated area

in Tajikistan

n/a

Gov. rev. $75 mio $5 mio $80 mio

Expatriates 90 Nil 90

Employment (incl. indirect)

20,000 3,000 23,000

Telecoms in Central Asia




Market Overview

Roshan established mid 2003 after transparent license tender

Drove the industry from 80K subscribers to 3.5 mio subscribers in 4 years:• The fastest growing market today in terms of penetration

Entry barrier dropped from $400 to around $30 today Today, there are 5 operators in the market, but how

many can survive? Predominantly pre-paid market Growth in country and region requires better

connectivity such as fibre:• Drives quality of service




Roshan – A Case Study

International shareholders with expertise in emerging markets and Central Asia:• AKFED – 51% • MTI – 36.75%• TeliaSonera – 12.25%

The name Roshan means “Light” and “Hope” in Pashto and Dari, Afghanistan’s two main languages

Social development is part of our DNA

Roshan strives to be the benchmark in terms of corporate governance“Roshan is not just a telecoms company, we are a catalyst for

growth and an intrinsic part of the reconstruction of Afghanistan”




Roshan Coverage




Touching the Customer

Built the largest distribution network in Afghanistan:• 200 Points of Presence• >3,000 Scratch Card

distribution points• Established >1,500 PCOs

First Western style Customer Care Center:• 200 CSRs• Customer Care Centers

in 25 cities• Fluent in Dari, Pashto,

English, Urdu and other languages

• First Telemarketing organization




Touching the Customer

Established concept of Roshan Family

“Relationships & Progress” Started the first tag-line:

““Nazdik Shodan”Nazdik Shodan”

One Smile Can Build A RelationshipIt’s all about dreams. Its about hopes. Its about the future. Its about RoshanRoshan – your connection to everyone. Whether you want to get in touch with your Friends, family or business partners, Roshan is there for you.Be a part of the Roshan family today. Because we help you progressOne Relationship Can Lead to Progress




Leveraging Communications

Telemedicine project in Kabul:• In conjunction with

Cisco, Aga Khan University Hospital Karachi, and the French Medical Institute for Children

Provide in country access to specialist diagnosis and training resources

Bringing Mobile Banking to Afghanistan in conjunction with Vodafone




International Recognition

Best GSM Marketing Campaign, GSM Conference (February 2005)

Best Telecom Brand in Middle East & Africa, COMMS MEA Awards (September 2006)

Best Operator in Developing Marketing, World Communications Awards (November 2006)

Special Recognition for Excellence in Corporate Philanthropy, CECP (February 2007)

Best Customer Service Award, COMMS MEA Awards (September 2007)“This is the first time I feel I am part of a country. I am proud to be an Afghan and proud to be a part of Roshan” Roshan Employee




Establishing the Right Enabling Environment

The right Enabling Environment is a necessity to spur private sector investment:• Stable regulatory environment:

• Telecom Law• Independent and experienced Regulator• Appeal Process• Universal Fund to be managed transparently• Establish interconnection rates

• Stable fiscal environment :• Customs & Tariffs• A known tax regime• Encourage investment

• Level playing field




Key Benefits of working with AKFED

Transparency Best practice Commitment to the region Financial strength World class partners Universal service Speed of implementation Collaboration with the Government Fiscal discipline Social development Job creation AKFED’s commitment - high level promotion of

the region




SOCIAL DVD to be played at the end(length 4 mins)

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