Investment Due Diligence Services

BMI-TechKnowledge conducts market due diligence studies in support of investments in telecoms operators across Africa.

Our experience covers fixed and mobile networks, terrestrial and submarine fibre optic networks, wireless access networks, erecting of towers and a variety of services such as broadband internet, hosting, data centre and call centre offshoring opportunities.

Investment Due Diligence Inform

BMI-T combines research from its own databases on African telecoms markets with data from the project sponsors and other secondary sources, in support of playing its role of independent advisor outlined below. In some cases, new primary research may be commissioned as required for the specific investigation.

Investment Diligence Advise

The outcome of each due diligence study is a considered judgement on the soundness of the investment, based on risk analysis and an independent assessment of risk mitigation activities that have been taken by the project's sponsors.

Investment Diligence Assist

Following on from the investigation, there is an option of BMI-T assisting the client in facilitating communication between the interested parties, while always remaining in the role of dispassionate, third party advisor. BMI-T will also explore other ways of assisting clients in taking the first steps towards implementing the project.

Your Advantage

Each due diligence engagement typically entails an appraisal of supplied documentation and data, a business and financial model review, and a review of any documentation provided by the project sponsor, to facilitate the provision of expert opinion regarding the viability, risk profile, and recommendations for modifications and / or improvements to existing plans and requirements. As due diligence advisor, BMI-T's brief would be to use its extensive knowledge of the African telecommunications market and specifically the mobile cellular markets in the regions concerned, to scrutinise the project sponsor's business case with a view to:

• Confirming market size and growth rate, by creating scenarios for upside and worst case situations;
• Confirming whether the Sponsor's marketing strategy is correct and viable in order to secure the required customers;
• Scrutinising the practicality of the underlying assumptions used in the business case, including market growth rate and market pricing trends and their impact on the projected revenues;
• Considering the impact of other telecoms networks in the regions concerned, and the potential by the Sponsor to capture market share based on its competitive position.

Our Expertise

Since inception in 1990, BMI-T has conducted numerous research and consulting projects in sub-Saharan Africa, including investment reviews for operators and funding arrangers. In 2002 BMI-T conducted an extensive eReadiness review of the entire SADC region on behalf of the SATCC, sponsored by the World Bank. In 2003/4 a further study was done for the World Bank, into investment opportunities in the region. Subsequent projects in the region include major studies conducted by BMI-T on its own initiative, namely:

• Telecoms Opportunities in the SADC/EAC region (2004,2005,2006)
• The Nigerian Telecoms Market (2004, 2005,2006,2007)
• African Telecoms Infrastructure Investment (2005,2006,2007, 2008/9)
• African Broadband and Wireless Access Market, (2006, 2007)
• Outlook for Submarine and Terrestrial Fibre Optic Cables in Africa (2008)
• Regulatory Trends Across Africa (2008)
• Outlook for WiMAX and CDMA in Africa (2008) 

Why BMI-T

BMI-T has specific expertise in projects of this nature, and has access to research that has already been conducted by the company in the broadband field in South Africa. The company has established a successful record in the field of telecommunications, with 18 years of experience in international consulting and technical assistance to private companies and public entities throughout Africa. In these endeavours, BMI-T has completed private contracts involving the telecommunications sector in 17 African countries.