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RWANDA
As nation reconciles with itself, a successful transition helps Rwanda recover from past wounds
Dr. Ephrem Ruzindana
General Manager of RWANDATEL S.A.
Contact details:
Telecom House, Boulevard de l'Umuganda
BP 1332 Kigali, Tel: (+250) 576777 Fax: (+250) 573110 Email:info@rwandatel.rw
Created in 1993,
Rwandatel has been affected by the war. Nevertheless,
it seems that your company recovered very well since
when. To give our readers a better view of the current
situation of your company, can you remind us the
measures taken over the past 8 years?
As a matter of fact, the war was a major problem
for Rwandatel; we are still recovering from the
events of the 90s particularly in 1994, there
were some infrastructures that had really been
damaged, nevertheless, when it comes to telecommunication
infrastructure, we face two aspects: infrastructures
and human beings. Human resources are very important
for me because nothing can be done without the
people. So, after 94, we found ourselves left
with those who did not run away and those who
were not killed. In addition, the urban population
increased, so the lack of infrastructure got even
more felt.
Many refugees came back to the cities, including
those who ran away from Rwanda in 1959. We can
say that the population tripled, which means more
area to cover for Rwandatel. On the other hand,
there were also habits of consumption, it was
not a question of only one line anymore, because
when the telephone was first installed in Rwanda,
the expectation was to have only one line, but
now habits has changed. Nowadays, one line is
wanted for the telephone, another one for the
fax and a third for the Internet. We are planning
to have three lines, and it is a question of multiplying
needs by 15 or 20 times in order to achieve this.
You will notice that in two years especially after
the war, investors did not want to come, money
was not circulating but we had to go over it.
In 94-95, we connected whomever we could; we asked
ourselves if switches were enough. Not only they
were not enough but they were also obsolete. There
were analogical switches, but we did not have
enough internet connection, so we had to bring
them up. After that, the question was to increase
the level of communication transport facilities,
which was a big issue. Finally, it was easier
to make centrals rather than network cables. So
we are starting to have centrals with good standard
levels.
We have been trying to keep as much as we can,
we introduced the wireless system, and it helped
us to solve some problems. We have trouble with
energy. Rwanda is not a very rich and stable country
in terms of energy, we often have power cuts,
nevertheless now we have some plans in order to
improve the situation; some engineers are studying
the possibility to manage Kigabli through a central
computer system.
From 1996 to 2001, you went from 7,000 to 20,000
subscribers, what are your expectations for 2002?
We are having about 25,000 subscribers. In 2002,
we increased the turnover of the year 2000 and
2001. Over that period, we actually doubled the
turnover. We tried to make the access easier in
terms of connection, we introduced a new product
especially internet with high debit, and provided
connections to banks.
New services were requested, Internet connection
improved but we did not have enough staff so we
had to employ new people in order to satisfy the
needs. Rwandatel was created only in '93, which
means that Rwandan people had very little experience
in the telecommunication field. The potential
was there but the people did not how to sell those
products. For instance we had the wireless but
people did not know how to sell it. At the end
we handled the situation with some sale trainings.
Which are your expectations regarding the turnover
and new the services to be offer in order to increase
it for next year?
We have just installed public phones to enable the
whole population to get telecommunication access,
including those who claim that using a mobile is
expensive. We are trying to attract the interest
of as many people as possible. The potential is
not yet that much in new services but in the satisfaction
of basic needs.
Rwandatel is preparing
for the privatization of its capital. Can you enlighten
us on what it will involve in terms of internal
organization and development strategy?
We believe in the free market economy. The market
is getting liberalized and it is time for Rwandatel
to get privatized. We have laws, we liberalize and
then we privatize. We should avoid systems creating
conflicts within one sector. It is not only recommended
by the World Bank but I also believe it makes sense.
we must get ride of our non-core businesses such
as the head office building which is not used. Renting
wings that are not used does not interest me, I
would better focus on what the company can bring
me, something like 10 or 12,000,000 dollars, it
is half of our turnover. We also have to separate
from those companies, which will become our competitors
later on.
You would like to sell to MTN your shares in
Rwandacell. Does it mean that you are not interested
in the mobile telephony anymore?
We have invested in the mobile telephony; we do
not intend to give up that sector that has a high
growth potential. We first want to restructure our
capital in view of the privatization and then we
will restart our own business in the mobile sector.
Do you have any timeframe for the launch of the
tender?
I hope in 6 months, consultants will be able to
give a conclusion but I cannot confirm that by myself,
the secretariat of the World Bank has something
to say about it.
How would you analyze the future penetration
of the mobile telephony on the market in comparison
with the fixed telephony?
The mobile telephony has significantly penetrated
Rwanda, the remaining problem is that it is very
expensive. We have everything, so to make a mobile,
it will not ask too much. And it will even be an
advantage for our costumers. What we need in this
market is more competition, because there is only
one operator, there is no reference.
Has the government prepared the sale of new licenses?
Yes but it is limited.
What do you think about the licence Rwandacell
is currently operating under?
Rwandacell was an answer of the sudden growth of
the population, at the incapacity of Rwandatel in
the 90s when the fixed phones were not enough. It
completed the empty. We had the technology, we could
not wait for the law, and we had a unique operator.
In March last year, you created a training center
for new information technologies. What motivated
your setting up this project and what are your expectations
now?
It is a personal dream. I was a professor in the
university of Yaounde, in Cameroon. At the same
time, I was thinking of two things, I created a
company with one friend of mine in Cameroon, we
made satellite dishes ourselves, with aluminum and
concrete, and we exported to Ghana. We kept on working
together. And when I came here in Rwanda I realized
how much we needed it. I started to get interested
on the technological potential. I also realized
that they have never had manpower, because there
were no industries which helped people use modern
methods. When I arrived someone wanted to propose
me those studies, so he called me and said that
he had a budget of 10,000$ and asked if it was going
to be enough. I said not but it was necessary to
see the connections between the trainee and the
industrial employer, I knew that it was insufficient.
Employers also had weakness, they did not know what
they really needed, and they did not know how the
world was moving. I saw how their ideas could become
reality.
So today, it is all about formations and making
dreams came true about the development of the country?
I think that an investor in Rwanda would not say
that our country is lagging behind the others in
terms of new technologies. Now we have people doing
electronics at university and our level in mathematics
is higher than in South Africa. God knows, when
I was preparing my high school degree, I learnt
a lot, but finally we were not prepared to solve
economic problems. So when I came here, Rwandatel
was proposed to me but I had some hesitations. At
that time, I was working at the ministry of defense,
and my first thought was to help the mobilized soldiers
find ways to shift their lives to the civil society.
Now, we can rely on a few people who have the qualification
to work not only for Rwandatel but also for other
companies.