1. Aga Khan Fund for Economic Development
Integrating Central Asia into the World Economy:
The Role of Energy and Transport Infrastructure
October

2. AKFED GLOBAL PRESENCE Canada West Africa Côte d’Ivoire Sénégal Mali
Burkina Faso
Central Africa
Dem. Rep. of the Congo
East Africa
& Indian Ocean
Kenya
Uganda
Tanzania
Rwanda
Mozambique
Madagascar
Middle East
Syria
South Asia
Pakistan
Bangladesh
Central Asia
Tajikistan
Afghanistan
Kyrgyzstan

3. Industrial Promotion Services Tourism Promotion Services
About AKFED
For profit agency involved in long-term investment
Over 90 project companies in 5 sectors
More than 30,000 employees
Industrial Promotion Services
Tourism Promotion Services
Financial Services
Media Services
Aviation Services

4. 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

5. AKFED in Central Asia Tourism: Financial Services:
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)

6. 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

7. 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

8. 90% of populated area in Tajikistan
Telecoms in Central Asia
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 cities
45% population
All major roads
90% of populated area in Tajikistan
n/a
Gov. rev.
$75 mio
$5 mio
$80 mio
Expatriates 90
Nil
Employment (incl. indirect)
20,000
3,000
23,000

9. 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

10. 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”

11. Roshan Coverage

12. 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

13. One Smile Can Build A Relationship
Touching the Customer
One Smile Can Build A Relationship
It’s all about dreams. Its about hopes. Its about the future. Its about Roshan
Roshan – 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 progress
One Relationship Can Lead to Progress
Established concept of Roshan Family
“Relationships & Progress”
Started the first tag-line:
“Nazdik Shodan”

14. 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

15. 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

16. 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

17. 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

18. SOCIAL DVD to be played at the end
(length 4 mins)