6 Ato SARPONG AfricaOnline

Africa: a major market for ICT and e.Business Solutions : 

Africa: a major market for ICT and e.Business Solutions “The Africa Online success story” Presented By Ato Sarpong, GM – AFOL Ghana

Who are we?: 

Who are we? Established in 1994 in Kenya Only True Pan Africa ISP Operational in 8 African Countries (KE,UG,TZ,NM,SZ,ZIM,CI,GH) Affiliates in other African Countries Servicing consumer and corporate customers (NGO’s, SME, Multi-nationals) JV with UUNet Africa Spread across all four regions of Africa Employs 300+ professionals – efficiency and effectiveness the key Sustained Profitability and cash flow positive

Challenges in Africa: 

Challenges in Africa Small internet subscriber base Poor Telco infrastructure Poor regulatory environment Low PC penetration Low levels of income (basic needs) Education -Low levels of internet appreciation/computer literacy – internet culture Scarcity of good mgt resources Bandwidth cost/squeeze Lack of government support-No tax incentives Unreliable power supply No regional peering use of international bandwidth for intra Africa market.

Our motivation: 

Our motivation Potential for growth Changes in democratic culture Changes in Macro economic environment Government commitment –conceding to Asian changes and domination in ICT Untapped markets Migration of skilled resources Under utilization of IT

Our Experience: 

Our Experience Narrow band services (dial ups) provided for many years across the continent no longer an attractive offering Poor Telco infrastructure Access contention ratios critical for its success Customer service and support mandatory Churn and erratic customer behavior Declining ARPU for consumer business. Entry of cellular giants into the ISP industry (convergence) Urgent need for deployment of Wireless broadband service Need for urgent training and retention of experienced/skilled staff

Future of ISP’s in a liberalized African Market: 

Future of ISP’s in a liberalized African Market Hopeful as growth in numbers looms Leaning curve over Ready to compete with National Telco's and cellular operators Association and one voice the way to go Efficiencies in service provisioning to reduce cost and stay competitive Quality of service and customer service Partnerships, alliances and mergers Growth with IT penetration & opening of new sectors VOIP when legalized Broadband the way to go

Challenges of being preferred service provider : 

Challenges of being preferred service provider Specialized leadership skills Investing and retaining Key intellectual capital Expanding Human resource function Harmonizing various HR issues (pension, life insurance, local laws etc) in different environments Hence our partnership with Telos Partners under the sponsorship of Pro-invest to address our leadership challenges

The program: 

The program Pre-event – Tanzania (Oct ‘05) One –on-one interviews Setting of objectives/agenda for Learning events Learning Event 1 – leadership & Development (Feb ’06) Psychometric testing – Strength Development Inventory Leading/managing – change process Purpose/vision/values Leadership styles Coaching for performance etc Leaning Event 2 – personal effectiveness (March ’06) Dealing with change Team work – Belbin Team Model Influencing Negotiating & dealing with Conflict Strategic projects

The program output – strategic Projects: 

The program output – strategic Projects Geographical Expansion & franchising Currently finalizing franchise deal in DRC E-TOUCH 2 Prototype project to come up in Ghana 1st half 2007 Quadruple play Undertaking R&D and market research in our key market – Kenya

KPI – indications of program success : 

KPI – indications of program success Faster identification of new, lower cost technology - Evidenced by development & roll out of wireless broadband services in Kenya, Ghana & Tanzania Increased retention rate of operational leaders Growth in revenue/customer numbers evidenced by decline in churn – reduction from double digit to single digit Market research & innovation as basis for new product offering – currently ongoing research for quadruple play in Kenya Better relationship with our customers – Account management in most of our markets

Benefits of Program : 

Benefits of Program 1. Enabled us to develop our purpose, vision and values Our Purpose “To connect Africa” Our vision “By 2015 we will be the leading provider of affordable high speed connectivity services in Africa and have changed the lives of millions of people across the continent”

Benefits – Our values : 

Benefits – Our values Customers We put customers’ needs first to exceed their expectations Innovation We are driven by a passion to improve our organization and the services we provide through constant innovation and the application of best ideas. Achievement We take pride in the accomplishment and mastery of difficult tasks. We engender a sense of purpose, belonging and involvement amongst our people. Self development We provide opportunities for all employees develop their full potential and to grow as people. Helping Others We help internal and external people to develop; providing  support and care when needed and pulling together in adversity. Integrity We seek to be an open and accountable organization which promotes self respect honesty and personal dignity.

Benefits to participants : 

Benefits to participants Program contents relevant & appropriate Immediate improvement in performance Behavioral changes High level of commitments to do things differently Agreeing on vision, purpose & core values seen as a major step in organizational effectiveness

In conclusion: 

In conclusion Proved successful in a difficult African market Only ISP to have taken risk of being a Pan African brand Achieved success in all countries of operation - positive cash generation + strong asset base Highly skilled and motivated staff Highly profitable with growth rate above market average -11% above market average Recognized as premium service provider Positioned to pioneer broadband development in sub-Saharan Africa

In Conclusion: 

In Conclusion Efficiencies in service provisioning leading to increased profitability and cash flows. Initiative has Strengthened intellectual capital and need to complete second training process to fully have benefits of the initiative.