RWANDA
As nation reconciles with itself, a successful transition helps Rwanda recover from past wounds





Dr. Ephrem Ruzindana


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.

  Read on  

 
© World INvestment NEws, Multimedia Information Company, 2003. - Optimised for 800 x 600 - Developed by AGENCIAE.TV.