Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic DevelopmentAga Khan Fund for Economic Development
Integrating Central Asia into the World Economy:
The Role of Energy and Transport Infrastructure
October 21 - 23 2007
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
AKFED GLOBAL PRESENCE
East Africa& Indian OceanKenyaUgandaTanzaniaRwandaMozambiqueMadagascar
Middle EastSyria
South AsiaPakistanBangladesh
Central AsiaTajikistanAfghanistanKyrgyzstan
Canada West AfricaCôte d’IvoireSénégalMaliBurkina Faso
Central AfricaDem. Rep. of the Congo
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
About AKFED
Industrial Promotion Services
Tourism Promotion Services
Media Services
Financial Services
Aviation Services
For profit agency involved in long-term investment
Over 90 project companies in 5 sectors
More than 30,000 employees
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
AKFED ‘s Approach to Development
Entrepreneurship promoted with economically sound enterprises in the developing world
Long-term investments with:• Strong equity positions• Provision of management expertise
Investments in fragile and complex environments:• Prospects of improving the lives of people
Profits entirely reinvested in further development initiatives
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
AKFED in Central Asia Tourism:
• Islamabad Serena Hotel + Swat/Gilgit• Kabul Serena Hotel• Dushanbe Serena Hotel• Khorog Serena Inn
Financial Services:• Habib Bank (Pakistan, Afghanistan)• First Microfinance Banks/Microfinance programs
(Pakistan, Afghanistan, Tajikistan, Kyrgyzstan)• Kyrgyz Investment and Credit Bank (Kyrgyzstan)• Insurance companies (Pakistan)
Industry/Infrastructure• Pamir Energy (Tajikistan)• Indigo (Tajikistan)• Roshan (Afghanistan)
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
AKFED’s Regional Partners
TeliaSonera:• Publicly traded Scandinavian telecommunications company,
with a large footprint in the Caucuses and Central Asia;• Co-shareholder at Roshan (Afghanistan) and Indigo (Tajikistan)
Monaco Telecom International/Cable&Wireless:• 37.25% investor in Roshan / Technical partner
Asian Development Bank (ADB):• Lead partner in senior debt financing in Roshan ($70 million)• Committed to finance private projects with AKFED
DEG, PROPARCO: • $30 million financing in Roshan
IFC and World Bank:• $>15 million Financing/grants in Pamir Energy
Norfund, FMO, IFC: • >$30 million financing to Serena Hotels in Afghanistan and
Pakistan
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Telecom Sector – Our Experience in Central Asia The largest partnership in telecoms in the region
Roshan (Afghanistan):
• 1.8 million customers
• Largest coverage (200 cities, rural areas, border roads)
• Largest private sector employer – over 20,000 direct & indirect employment
• Largest taxpayer, representing 6% of the government’s budget
• Largest private investor with over $350 million investment by end 2007
Indigo (Tajikistan):
• 600,000 customers
• Largest coverage including remote areas
• Some $70 million investment by end 2007
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
End 2007 Estimated
Roshan (Afghanistan)
Indigo (Tajikistan)
Total
Investment $350 mio $70 mio $420 mio
Customers 1,800,000 600,000 2,400,000
Coverage 200 cities45% populationAll major roads
90% of populated area
in Tajikistan
n/a
Gov. rev. $75 mio $5 mio $80 mio
Expatriates 90 Nil 90
Employment (incl. indirect)
20,000 3,000 23,000
Telecoms in Central Asia
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Market Overview
Roshan established mid 2003 after transparent license tender
Drove the industry from 80K subscribers to 3.5 mio subscribers in 4 years:• The fastest growing market today in terms of penetration
Entry barrier dropped from $400 to around $30 today Today, there are 5 operators in the market, but how
many can survive? Predominantly pre-paid market Growth in country and region requires better
connectivity such as fibre:• Drives quality of service
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Roshan – A Case Study
International shareholders with expertise in emerging markets and Central Asia:• AKFED – 51% • MTI – 36.75%• TeliaSonera – 12.25%
The name Roshan means “Light” and “Hope” in Pashto and Dari, Afghanistan’s two main languages
Social development is part of our DNA
Roshan strives to be the benchmark in terms of corporate governance“Roshan is not just a telecoms company, we are a catalyst for
growth and an intrinsic part of the reconstruction of Afghanistan”
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Roshan Coverage
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Touching the Customer
Built the largest distribution network in Afghanistan:• 200 Points of Presence• >3,000 Scratch Card
distribution points• Established >1,500 PCOs
First Western style Customer Care Center:• 200 CSRs• Customer Care Centers
in 25 cities• Fluent in Dari, Pashto,
English, Urdu and other languages
• First Telemarketing organization
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Touching the Customer
Established concept of Roshan Family
“Relationships & Progress” Started the first tag-line:
““Nazdik Shodan”Nazdik Shodan”
One Smile Can Build A RelationshipIt’s all about dreams. Its about hopes. Its about the future. Its about RoshanRoshan – your connection to everyone. Whether you want to get in touch with your Friends, family or business partners, Roshan is there for you.Be a part of the Roshan family today. Because we help you progressOne Relationship Can Lead to Progress
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Leveraging Communications
Telemedicine project in Kabul:• In conjunction with
Cisco, Aga Khan University Hospital Karachi, and the French Medical Institute for Children
Provide in country access to specialist diagnosis and training resources
Bringing Mobile Banking to Afghanistan in conjunction with Vodafone
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
International Recognition
Best GSM Marketing Campaign, GSM Conference (February 2005)
Best Telecom Brand in Middle East & Africa, COMMS MEA Awards (September 2006)
Best Operator in Developing Marketing, World Communications Awards (November 2006)
Special Recognition for Excellence in Corporate Philanthropy, CECP (February 2007)
Best Customer Service Award, COMMS MEA Awards (September 2007)“This is the first time I feel I am part of a country. I am proud to be an Afghan and proud to be a part of Roshan” Roshan Employee
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Establishing the Right Enabling Environment
The right Enabling Environment is a necessity to spur private sector investment:• Stable regulatory environment:
• Telecom Law• Independent and experienced Regulator• Appeal Process• Universal Fund to be managed transparently• Establish interconnection rates
• Stable fiscal environment :• Customs & Tariffs• A known tax regime• Encourage investment
• Level playing field
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
Key Benefits of working with AKFED
Transparency Best practice Commitment to the region Financial strength World class partners Universal service Speed of implementation Collaboration with the Government Fiscal discipline Social development Job creation AKFED’s commitment - high level promotion of
the region
Aga Khan Fund for Economic Development
June 2006AKFED Copyright © October 2007
Aga Khan Fund for Economic Development
SOCIAL DVD to be played at the end(length 4 mins)