East Africa the Place to Grow
Altech is continuing its investment into providing network services in East Africa, having identified that region as the next major growth engine for the group.
CEO Craig Venter says the group has invested into Kenya Data Networks, Swift and Infocom on the terrestrial network front and today announced a strategic alliance with Seacom whereby it has acquired 5Gbps on the undersea cable, with the option of doubling it.
“Not to be too critical of South Africa, but obtaining licenses and working with the regulators in East Africa has been extremely refreshing,” Venter says.
Altech also has a 10% stake in the TEAMS undersea cable, expected to come online next year, which will link Kenya to Europe and Asia.
Venter states that Altech is currently the largest network provider in East Africa and probably the second largest on the continent.
Already its KDN investment is paying dividends, having contributed over R100-million to profits last year and on track to contributed about R240-million this year. In fact, Venter believes East African operations, which currently account for about 20% of the group’s profits, could rise to 45% within the next couple of years.