Bridge to a Prosperous Africa: The Role of Mobile Phone Network Firms And Their Actors.

Bridge to a Prosperous Africa is a collection of articles on the role of mobile firms and their actors in building a prosperous, inclusive and dynamic Africa.
The articles were inspired by the need to build a knowledge-base among Africans of what is required to make the continent responsive to the aspirations of its people.
Africa’s challenges of poverty, unemployment and inequality are not unique but solutions in the post-colonial period have proved elusive, partly due to ideological reasons. The belief that Africans cannot get their act together is not supported by the history, evolution, development and growth of the mobile network industry. The journey started in the then-Republic of Zaire under President Mobuto. Telecel became the first child of Africa’s mobile network business.
The book examines key public policy issues and actions that have allowed this industry to register the success that it has. It seeks to show that Africa has tremendous resilience and capacity to absorb First World technologies to its advantage. There is no record of donor funds being deployed to support the industry. Rather, private funds were and continue to be mobilized and deployed to build a network that now supports over 700 million subscribers. The transactions that have taken place involving share transfers suggest that investing in Africa can be financially rewarding.
The articles explore various themes that add value to the kind of knowledge that Africans need in order to transform the continent from a basket case to a platform that can be used to the benefit of the continent’s growing population. The story of Africa’s mobile networks is rich with lessons on what needs to be done and what not to do.
When the two partners, Messrs Gatt and Rwayitare, chose to be the change they wanted to see in Zaire, they had to develop and implement tactics and strategies that were not only creative but equal to the challenge of the day. They started with no customers and no balance sheet of which to speak, but an idea that a brighter future lay ahead if only they took the plunge and risk. Through their efforts, in December 1986 the first cellular call in Africa was made.
The industry did not start as a government program or an empowerment scheme. Rather, it started because government had failed to deliver the service. In Zaire, with a population of 40 million at the time, only 40 000 lines were in operation to serve the nation. Africa’s mobile phone penetration is now approximately 75% and this would not have been possible without private sector intervention. From one operator in 1986, Africa now has more than 200 networks.
The 26 years of the industry’s existence has seen substantial reduction in the cost of handsets and user fees, rapid technological innovation, the building of a sophisticated supply chain, massive infrastructural investments, private capital information, limited or no donor financial support, market-driven changes in ownership, consolidation, transfer of wealth to the state and directly to the poor, employment generation and direct transfer of wealth to stakeholders, including employees.
The articles look at partnerships and voluntary business associations through the relationship of Mr Gatt, an American businessman and Mr Rwayitare, a Rwandan-born Congolese businessman, in the development of the mobile phone industry.
The human side of the story is touched upon in tracing the origins of Telecel, the relationships that paved the way for the birth of the company, as well as the dissolution of partnerships and the emergence of a pan-African conglomerate with footprints in many African states.
This book will be of interest to all those seeking a better understanding of Africa’s corporate legacy and heritage. It provides a convenient and useful case study for all who may be under the mistaken belief that Africa’s poverty is a commercial curse.