Ghana Cyber City Overview
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Transcript of Ghana Cyber City Overview
Ghana Cyber CityThe New Technology & Innovation Hub of West Africa
The $40 Million Ghana Cyber City is an innovation venture designed to provide high tech office space and a Tier IV data center targeted at the emerging West and Central African market with a booming telecommunications, ICT and financial services industry. The project will also facilitate incubation of innovative firms and create 5,000 jobs in 5 years. The Ghana Cyber City will bolster West Africa’s market share in the $550 billion offshore outsourcing market.
Partners
Equity and development partners of the Ghana Cyber City include Gateway Innovations (Ghana), Xalles Limited (Washington), Ernst & Young (New York) and Technolopolis (Finland).
Gateway Innovations was established for the primary purpose of planning, developing and managing the first technology park in West Africa. Gateway has already secured 40 acres of commercial land at strategic location within the 3,000-acre University of Ghana campus.
Xalles Limited (Herndon, Virginia) provides business strategy and systems implementation services to firms in the financial services and information technology industries in primarily the United States, Canada, Ireland, Africa, Latin America, Brazil, and Singapore.
Ernst & Young provides financial advisory and strategic planning services.
Technolopolis (Finland) is one of the largest technology parks in Europe and is mandated by the United Nations to facilitate the technical and financial implementation of the Ghana Cyber City.
Project Overview
Ghana
• Official Language: English• Population: 23 million • GDP: $34.52 billion (PPP) 2008• GDP Per Capita: $1,500 (PPP)• Stable currency
1US Dollar = 1.45 Ghana Cedi• Labor Force: 11 Million • Standard & Poor’s Rating:
B+ (2008)• GDP Growth Rate Per Year: 6%• Energy: New Oil Economy• Literacy Rate: 72.6% • Skilled labor market• Fastest growing industries:
Technology, Real Estate, Financial Services, Tourism.
• Fiber Optic Access: SAT-3/WASCGLO-1, MAIN One
The world’s 15th most competitive outsourcing destination.
Location of Ghana Cyber City
Land Value and LocationThe project is located only 5 miles from the Accra International Airport, in the heart of one of the best-performing property markets in Africa.
Business CompetitivenessGhana is ranked top 20 in the world in implementing business reforms (World Bank: Doing Business Report, 2010) and is the world’s 15th most competitive outsourcing destination (Source: A T Kearney's Global Services Location Index, 2009).
Free Zone EnclaveThe proposed Ghana Cyber City will be designated a free zone area, providing tax incentives for companies at the tech park.
Links with Research UniversityThe University of Ghana would provide access to a 20,000-strong pool of skilled labor, including programmers, software developers and technology managers and analysts.
Products and Services
IT Outsourcing & Incubation •BPO and Applications on Demand•Software Dev.•Lotus Notes•SAP, Oracle•PeopleSoft
Business Consulting & Office Rental•Office Space Rental •Virtual Office•Financial Mmgnt•Supply Chain Mgnt•Business Analytics
Broadband & IT Service•Broadband Service•24-hour maintenance & tech support svc
•Network engineering•Software, Peripherals
Data Center•Storage and datasvc & virtualization
•Server & security •Network engineering•IT svc consolidation & relocation services
Management
Profile
Yaw Owusu, Managing DirectorColumbia Business School, Executive MBA Program, 2001-2002; BS, Mathematics, Albright College
Tanko Mohammed, Chief Operating OfficerMassachusetts Institute of Technology (MIT), Sloan School of Management, MBA 2004
Eric Osiakwan, Broadband and Data CenterFellow, Berkman Centre, Harvard University , Cambridge, Massachusetts
Jennifer Yador, Marketing and CommunicationsHarvard University Kennedy School, MPP 2007; Columbia Business School, MBA 2007
Nii Simmonds, Technology IncubationWharton School of Business, Grad BPO Cert; BS, Management & Finance, Pennsylvania State Univ.
Tony Widjaja, Strategic PlanningUniversity of Toronto, Canada, MBA; BS Applied Science & Engineering
Case Study: CtrlS
Services: Managed LoadBalancing,Co-location, SAP, Firewall, IPS/IDS.
Raised $160 Million, the biggest in the data center industry.
Seeks to develop over a million sq ft of data center space in India.
Clients: Pacific Internet, HartexGlobalOutlook, eXensys, 7Hills.
Partners: Industrial Development Bank of India, Oracle, IBM.
Data Center
Case Study: Shanghai International Business Incubator
Incubation
Incubation Area: 593,641 m2
Number of Tenant Firms: 2,123
Number of Knowledge Workers: 23,216Incubation Fund: $22.9 Million
Established in 1997.Number of Graduated firms: 481
Six incubation bases, including STIC, Caohejing, Yangpu and Withub.
Sales Volume: $805.2 MillionNet Income: $71 Million
ACS joined the ranks of Fortune 500 Companies in 2003
Currently Employs over 1,800 in Ghana, up from 85 in Nov. 2000.
$3 billion dollar in revenue. Clients include Aetna, Procter & Gamble.
Established in Ghana in 2000
Spends $3,000 per employee per year in wages in Ghana.
Handles 2 million to 3 million claims per day overall.
Case Study: Affiliated Computer Services
Business Process Outsourcing
Fiber Optic Backbone
Broadband technology options for the Ghana Cyber City.
SAT-3/WASC South Atlantic 3/West Africa Submarine Cable. First links to Europe for West and Southern African broadband consumers.Operational Date: 2001. Capacity: 120 Gbit/s. May be upgraded to 340 Gbit/s.
WACSWest Africa Cable System.Participants: Vodacom, MTN, Telkom South Africa, Broadband Infrasco.Operational Date: 2011Capacity: 3.84 Tbit/s
MAIN ONELanded in Ghana in 2009. Span: 14,000 km, between Portugal and South Africa. Dual Fiber pair. Operational Date: May 2010Capacity: 1.28-Tbit/s.
GLO-1Globacom-1Landed in Ghana in 2009. Span: 9,500 km.Minimum capacity: 640 Gbit/s
Financial Projections
$
Gross Revenue vs. Net Earnings($ in thousands)
-2,000
3,000
8,000
13,000
18,000
23,000
28,000
Year I Year II Year III Year IV Year V
Gross Revenue Total Expenses Net Earnings
Revenue Analysis: Management projects a net loss of $2.6M in Year I, and profits of $2.3M and $8.6M in Year II and Year III respectively. Investment Requirements: The total cost of a fully-developed Ghana Cyber City is estimated at $40M in 5 years. The project initially requires $10M in equity investment and additional $10M in debt financing.
Long-Term Project Goal
• Develop the first Tier IV data center in West Africa.• Provide high tech office space for 100 companies.• Incubate innovative firms and strengthen Ghana’s
market share in the $550 billion offshore outsourcing industry.
• Employ 3,000 knowledge workers in 5 years and attract 40 global IT -BPO firms including:Xalles Limited, Washington, DCIT World, Abuja, NigeriaGoogle, Mountain View, CASun Microsystems, Santa Clara, CAIBM, Armonk, New YorkElectronic Data Systems, Plano, TXMicrosoft, Redmond, WA
The 500,000-square-foot Ghana Cyber City will accomplish the following: