On 18 September 2013, The Government of Rwanda and Korea Telecom Corporation, the Republic of Korea s largest telecommunications provider, today signed a shareholders agreement to establish a Systems Integration & IT Services joint venture (JV) Company to build and operate services in Rwanda and across the neighbouring region, based on advanced ICT infrastructure.
As principal shareholders, KT will bring expertise and a baseline cash injection of around $8 million and additional project-by-project cash injection as required. The Government s equity investment will be in the form of assets.
The company is intended to create significant computing power based on advanced computing and cloud services infrastructure enabling Rwanda to achieve a leap-frogging effect in the same way that the country is using 4G LTE to skip the 3G stage of broadband network evolution. The company s market will be region-wide, allowing it to export services and know-how.
Rwanda s central objective for this company is to systematically implement and operate mechanisms to achieve large-scale transfer of know-how from KT and to develop a broad base of ICT skills consistent with the goals of Rwanda s EDPRS-II (2013-2018) program. The company s work force is expected to grow rapidly in its first 6 years reaching around 700 highly skilled employees in 10 years.
The company is also expected to stimulate the emergence and growth of a wide range of small medium-size enterprises (SMEs) either subcontracting to the company or creating innovative applications to deploy as online services within the company s services infrastructure.
The JV established for an initial 10 year term was co-signed on behalf of the Government of Rwanda by Ms Clare Akamanzi (CEO of Rwanda Development Board) and on behalf of KT Corporation by Mr HJ Kim (President, Global & Enterprise Group) and ratified by and Hon. Jean Philbert Nsengimana (Minister of Youth and ICT).
Minister Nsengimana said that This joint venture to establish the Systems Integration & IT Services Company comes at the time when some targets of the EDPRS2 focusing on infrastructure are being given more importance to enable Rwanda to achieve the targets set to transform Rwanda into a modern, knowledge-based economy and a middle income citizen earners as there will be more jobs created and social life transformation.
Ms Akamanzi said that As we are looking forward to facilitate Rwanda s citizens and businesses to access reliable and high speed broadband, we believe that the newly joint venture between Korea Telecom and the Government of Rwanda will fast-track the development to embark our country on the ambitious objective to transform Rwanda as the region services hub, by applying IT solutions to our daily lives .