AfricaCom 2009

If you are of a Telecomms mindset, then no doubt you will be aware of the annual AfricaCom conference that takes place in Cape Town in November and is now in it's 12th year.

This year the line up of speakers and topics is stronger than ever, no doubt due to the inclusion of yours truly amongst that esteemed gathering of presenters. Actually, it is very flattering to be asked to give a Zimbabwean perspective at this pan African event, albeit in a very small and focused way and I am looking forward to the opportunity. (Even though my friend D, thinks I must have paid them to let me speak..bah!)

Undoubtedly the telecomms industry is one of startegic importance to our country as we look to find ways to open up the airwaves. Being land-locked, access to the myriad of undersea cables that are snaking their way down the East and West coasts of our continent is particularly mired in international red tape and regulatory complications. However there is absolutely no doubt about the correlation between access to affordable bandwidth and the speed with which a developing country can grow. Here's hoping someone in authority is listening!!

Meanwhile we are left to contend with the severe limitations of our outdated infrastructure and legislation and I have been asked to address the aforementioned audience on the subject of strategies to increase margins in an environment of falling ARPU's. Now there's a thought! Although Zimbabwe is on a wobbly but nevertheless worthwhile recovery path, we still have the daily peaks and troughs of emotion trying to operate here and in ARPU terms (that would be average revenue per user D!) we are experiencing the wild fluctuations that are bound to be part and parcel of a change in currency and revaluation to real terms of the costs of goods and services. Which brings me sadly back to my old hobby horse. It seems to me that the network's approach to falling ARPU's is to simply jack up the price...without any commensurate improvement in services..... hopefully they'll pitch up at the conference and learn something!

Speaking of speaking, I'll also be at the Annual Institute of Chartered Accountants Winter School in Nyanga next week, to discuss investment opportunities in Zimbabwe. Depending on who has said what to the press in the preceding days, it will either be a riveting and exciting conversation or a very short chat.. we shall see.

While I'm on the subject of fluctuations, I wonder if there is anywhere else in the world where business is subjected to the same level of confusing legislation and contradictory communications as we are blessed with here. Take my other favorite subject, wine, for instance.

Having reduced duty on importing this product to zero percent, for producers with SADC certificates of origin some 12 months ago, we suddenly find ourselves with a new 15% duty imposed upon us for the same product. Is this protectionist? Does it reflect an abject lack of understanding of free market principals? Is it an attempt to increase Government revenues or reduce currency outflows? Either way, it flies in the face of what the SADC and COMESA trade agreements set out to achieve and in reality probably reduces the net tax revenues for the fiscus. So the more that things change here, the more they stay the same it seems.

Till next time, salute!

Geoff Goss
Country Manager
LonZim Plc
Chief Executive Officer
Celsys Limited
Block 5
Arundel Office Park
Tel: +263 4 369160
Fax: +263 4 369179
www.celsys.co.zw
www.lonzim.co.uk