Investor Research Notes

AfricaNext Investor Research notes are 5-10 pages notes focused on the implications of market events and trends around business fundamentals. The research notes build on daily market intelligence and our extensive AfricaNext Database. They complement reports in providing the AfricaNext view on key business economics and due diligence issues. Investor research notes are published 3-4 times each month.

Investor Research Notes are available upon request to all purchasers of AfricaNext Research reports. Selected Notes are made available to subscribers to our AfricaNext Market Review Newsletter and in our Member-only area (free subscription).

Sample (see our Member Area for Free Downloads)

Rwanda: Third Telecoms License a No-brainer for Rwanda, Not so for Investors

July 11, 2008 - Available upon request

At the end of June, the Rwandan telecoms regulator, the Rwanda Utilities Regulatory Agency (RURA) invited bids for the country's third unified telecommunications license. The Government of Rwanda (GoR) can hardly be blamed for putting another license on the market, a mere five months after selling state-owned operator Rwandatel for USD100m. Nonetheless, and based on fundamentals alone, we see limited upside value in this asset.

Highlights:

The Rwandan telecoms regulator, the Rwanda Utilities Regulatory Agency (RURA) has invited bids for the country's third unified telecommunications license.

The Rwandan government can hardly be blamed for trying, mere months after generating an implicit value around USD100m for a mobile license.

On the basis of fundamentals alone, we see limited upside value in this asset.

Using a mix of comparable transaction and discounted cash flow analysis, we estimate fair value around USD5m-12m.