Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Vodacom, Maziv deal now looks likely after CompCom U-turn

      8 July 2025

      Icasa publishes new draft regulations for digital TV

      8 July 2025

      Fast-growing Beira port to get private mobile network

      8 July 2025

      MultiChoice hit with multimillion-rand fine for privacy ‘breaches’

      8 July 2025

      Still in play: Ramaphosa banks on talks to ease US tariff blow

      8 July 2025
    • World

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025

      Jony Ive’s first AI gadget could be … a pen

      30 June 2025

      Bumper orders for Xiaomi’s YU7 SUV heighten threat to Tesla

      27 June 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » East Africa just the start for high-flying Altech

    East Africa just the start for high-flying Altech

    By Editor30 September 2009
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Craig Venter

    JSE-listed technology group Altech is considering ramping up its investments in telecommunications infrastructure in SA and West Africa, effectively replicating its investments in East Africa.

    Altech CEO Craig Venter, pictured, is cautious about how much he says about the group’s strategic plans in this regard. However, speaking to TechCentral after the release of the group’s interim results on Tuesday, he hinted that Altech could accelerate its investments in infrastructure elsewhere on the continent.

    Altech’s investments in East Africa, where it is the principal shareholder in Kenya Data Networks, have performed exceptionally well: 18% of the group’s operating profit (5% of turnover) in the six months to August 2009 was generated from the region.

    Venter says Altech will pump at least US$20m/year over the next several years into capital expenditure in East Africa — mainly deploying new fibre networks. It is building backhaul fibre networks in and between Kenya, Tanzania, Rwanda, Uganda and the Democratic Republic of Congo.

    Asked whether Altech will replicate its East African investments elsewhere on the continent, Venter says: “We’ll definitely look at replicating that formula, not only in the West African region but also in SA.”

    But any plans to make big investments in infrastructure in SA are at least a year away, Venter says. For now, the focus is on East Africa.

    Listen to Craig Venter talking to TechCentral about Altech’s telecoms infrastructure plans elsewhere in Africa

    It’s ironic that Altech isn’t building a national network in SA. It was Altech that challenged government’s telecoms policies in the high court and in the process succeeded in opening the SA telecoms market to much greater competition.

    Since the high court ruling, Altech has acquired Technology Concepts, an Internet service provider. Though small, Technology Concepts is growing quickly and will soon become a so-called “tier-one” service provider with access to international bandwidth via the Seacom marine cable.

    Altech will spend $69m over the next five years on Seacom bandwidth. It has bought 5Gbit/s on the cable system, mainly to supply its East African operations, but also to provide international connectivity in SA.

    “We see a lot of opportunity in SA,” Venter says. “We will use our [network] licence. We will play some kind of role, yes we will, but strategically I can’t say everything now.”

    Some analysts have criticised Altech in recent years for keeping too much cash on its balance sheet. “They said we had a lazy balance sheet,” Venter says. But he feels vindicated now for hanging onto the money. With the economic downturn, it has allowed Altech the luxury of buying companies whose valuations have fallen.

    “We have been unbelievably aggressive in the last year,” Venter says.

    The group continues to produce great gobs of cash. Though it has spent more than R1bn on acquisitions and other investments in the past year, Altech still expects to end its financial year with about R900m in cash, Venter says.

    The market is clearly enamoured of what Venter has achieved at Altech. After the release of Tuesday’s results, the share price ran up to R70/share, not far off its all-time high.

    Though turnover in the six months to August was up a pedestrian 4%, operating profits rose 17% on the back of cost controls and other efficiencies.

    Venter says he is pleased with the top-line growth given the state of the economy. Also, the group traditionally performs better in the second half of its financial year. “We have a strong order book and I’m really feeling confident about what will happen going forward.”

    Even Altech Netstar, the vehicle tracking business, which should be more vulnerable to the economic slowdown, performed well, with the fleet management side of the business growing revenues by more than 20%.

    The only business that didn’t perform well was Altech UEC, the decoder and set-top box manufacturer, where operating profit fell 45% on a 14% decline in sales. Venter says the slowdown is due to delays in supplying an order for 700 000 set-top boxes to a client in India. These decoders will be shipped in the second half of the financial year and UEC should report R70m in profit after tax for the full year.  — Duncan McLeod, TechCentral



    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBharti shares rise as MTN talks deadline looms
    Next Article We review the latest iPods

    Related Posts

    Vodacom, Maziv deal now looks likely after CompCom U-turn

    8 July 2025

    Icasa publishes new draft regulations for digital TV

    8 July 2025

    Fast-growing Beira port to get private mobile network

    8 July 2025
    Company News

    Huawei South Africa Partners Forum 2025: joining hands for a digital, intelligent future

    8 July 2025

    Powering South Africa’s industrial intelligence with Huawei Cloud’s AI-native innovations

    8 July 2025

    Rain launches a new way to connect. It’s a loop

    8 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.