World Bank connects Africa

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 05 Apr 2007

The World Bank has approved a financing package of $164.5 million for Kenya, Burundi and Madagascar as the first tranche of a $424 million programme for high-speed connectivity in east and southern Africa.

A statement released by the World Bank this week says the region is being held back by the prohibitive costs of international connectivity. The project, the Regional Communications Infrastructure Programme (RCIP), will eventually connect 25 countries in the eastern and southern parts of Africa.

By the end of the programme, it is expected that all capitals and major cities in east and southern Africa would be linked to competitively priced high-bandwidth connectivity, it says.

It notes that east and southern Africa is the only region in the world that is not connected to the global broadband infrastructure and accounts for less than 1% of the world's international bandwidth capacity. As a result of this missing link, the region relies on satellite connectivity, with costs among the highest in the world, it notes.

It is unclear how the RCIP is related to the African Union's (but South African instigated) Nepad Broadband Infrastructure Network (NBIN), also called the East African Submarine Cable System (Eassy).

Some 12 countries have signed the NBIN protocol, which ensures the project provides non-discriminatory access for all users.

Department of Communications director-general Lyndall Shope-Mafole says the World Bank's move is to be welcomed and does not necessarily offer an alternative to NBIN.

"I don't know what discussions they have had with the various countries, but Nepad [New Economic Partnership for Africa's Development] is a partnership and helping these countries fund their infrastructure is good."

Shope-Mafole says Africa's relationship with the rest of the world has changed. Funding for the continent's development is now linked to what African countries see as their developmental priorities, she notes.

Regional integration

According to the World Bank statement, its board of directors has responded to the appeal and governments' requests for assistance by unanimously endorsing RCIP, which will bring affordable high-speed connectivity to east and southern Africa.

The $164.5 million first tranche of funding consists of International Development Association (IDA) credits in the amount of $114.4 million for Kenya and $30 million for Madagascar, and an IDA grant in the amount of $20.1 million for Burundi.

The statement says RCIP is an innovative example of the emphasis on regional integration, which accounts for more than 10% of total World Bank support to Africa.

"Improving broadband connectivity will add tremendous public value for Africa. Low-cost, high-quality communication is essential for economic competitiveness," says Paul Wolfowitz, president of the World Bank Group.

"Africa is becoming more plugged in - this is very encouraging for the continent. Our partner countries are sending a strong signal to the world that they are open for business and ready to leap into the information age."

The World Bank statement says RCIP financing of terrestrial networks will be a catalyst to attract and maximise private sector investment in telecoms infrastructure. RCIP complements regional undersea cable initiatives, such as Eassy, developed by telecoms operators with support from the International Finance Corporation and other development partners.