AfDB’s Support to ICT: African Capitals Connected by Fibre Optic in 2012

The potential contribution of ICTs to poverty reduction, economic growth, productivity and efficiency of public services is well recognized. However, Africa lags behind other regions in ICT penetration and according to the ITU (2009) their rankings on the national ICT Development Index (IDI) are still among the lowest in the world. Accordingly, between 1995 and 2005, the Bank invested USD 440 million in telecommunications infrastructure in Africa and USD 120 million on e-applications such as education, health, agriculture and rural development in order to help close the gap.

Subsequently, the Bank in the past two years has made significant steps towards getting more actively engaged in African ICT. Most notable are the commitment to realizing the Connect Africa Summit goals from Africa Head of State meeting that took place in Kigali in October 2007. The goals included the interconnection of African capitals through broadband links by year 2012 and promoting adequate policy and regulatory environments in order to encourage new ICT infrastructure investment. The Bank also contributes, alongside the AU and Regional Economic Communities, and through supporting efforts in policy harmonisation and infrastructure development, to the realisation of other regional and global initiatives. In this respect AfDB is one of the main actors in the implementation of the ICT policy and regulatory harmonisation framework that was endorsed by African ministers responsible for ICTs at a meeting held in Cairo in May 2008.

In order that the Bank strengthens its current position to deliver its commitments and make a valuable contribution towards the continental economic objectives, a focused ICT Operational Strategy was developed in 2008 and became operational in October 2008 after its approval by the Bank’s Board of Directors. The objective of the ICT operations strategy is to make an important contribution to poverty reduction and economic growth of Regional Member Countries (RMCs) by increasing the Bank’s role in extending access to ICT infrastructure, stimulating private sector investment and ultimately enhancing good governance through the efficient delivery of public services. The Strategy in the short run (first 24 months), would concentrate on two pillars – direct finance of broadband infrastructure and support to Africa’s efforts to attract private financing flows through improvements of the policy and regulatory frameworks. The Bank has recently agreed a USD 14.5 million loan for the fibre optic submarine cable EASSy in the east coast and a USD 50 million loan for the satellite project RASCOM. The Bank is also financing feasibility studies for regional broadband networks. In the medium term, the Bank plans to work towards stimulation of the demand for ICT networks and services by promoting e-government and connectivity to schools, universities, health institutions and through customized response to the needs of Fragile States, Low and Middle Income Countries.

Source: African Development Bank ICT Operation Strategy.