Rwanda News Agency/Agence Rwandaise d'Information (Kigali)
17 August 2007
Kigali — The government of Rwanda is planning to sell 70 percent of its stake in the now state owned phone operator Rwandatel after sending the previous managers packing, RNA has established.
"Privatisation Secretariat invites internationally recognised and reputable telecommunications operators or consortia to acquire the bidding documents and submit their bids for the acquisition of a majority stake up to 70 percent in Rwandatel/Terracom SA," a bid document by the Privatisation Secretariat reads.
After months of uncertainty and blame game, cabinet on July 25 decided to buy-back its telecommunications company from controversial youthful American Tech entrepreneur Greg Wyler. The company was bought back at $12 million.
The Ministry of Finance and Economic planning was authorized to recover all the shares that TERRACOM executives owned in the company. The name also changed to Rwandatel - making the final seal in changes that are noticeable. For months now, all TERRACOM offices and Kiosks have been painted pink with 'Rwandatel' inscription from the Dark Red.
Government accused the American tech businessman and his hired chief executive officer Mr. Christopher Lundh of poor management and failing to deliver on contractual obligations such as rolling out a new mobile network.
Interested bidders are required to offer both a technical and financial proposal by September 5 this year, according to the bid. The bidders are also required to have a clear commitment and strong financial muscle to implement a realistic plan to boost telecommunications in Rwanda.
In 2003, Mr. Greg Wyler bought 99% shares of then Rwandatel, the country's national telecommunications company for $20 million. Mr. Wyler, 37, was also granted a lucrative $50-million government project to wire up 300 schools - especially primary and secondary - to the Internet via satellite.
By June 2007, according to Rwandan officials, only a handful of schools have been minimally hired up. The project was supposed to be completed in 2006.
But officials are bitter that four years down the road most of the promises and dreams he brought by have failed to materialize. Kigali authorities also say Mr. Greg actually abandoned internet provision and shifted to phone services.
However, TERRACOM executives say government over reacted and did not fulfill its side of the obligation.
"We would get to schools that don't even have electricity or computers," Mr. Lundh at onetime said. "That is not our fault." In addition, he said that many of the complaints about the company concerned things beyond its ability to control.
Government figures indicate that TERRACOM had 200.000 phone subscribers and only about 20.000 internet customers. This did not go down well with Government that wants to reorient the Rwanda economy into an ICT-led one.
South African regional telecom giant MTN has dominated the phone market in the country since 1997.
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