[kictanet] [Fwd: [Fibre-for-africa] Fwd: World Bank Approves US$164.5 Million for Connectivity...]

Tue Apr 3 23:31:05 EAT 2007

fyi...

-Steve

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World Bank Approves US$164.5 Million for Connectivity to Make Kenya, 
Burundi and Madagascar More Competitive Up to 25 countries  in East and 
Southern Africa could benefit from the broader US$424 million Regional 
Communications Infrastructure Program (RCIP)
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WASHINGTON, D.C., April 2, 2007 ¡ª The World Bank Board of Directors
approved on March 29, an International Development Association (IDA) 
financing package of US$164.5 million for Kenya, Burundi and Madagascar 
as the first tranche of the US$424 million Regional Communications 
Infrastructure Program (RCIP) for high-speed connectivity in East and 
Southern Africa.

The region is being held back by the prohibitive costs of international
connectivity. Businesses are unable to compete in the global economy;
university students suffer because they cannot access the Internet; and
Government agencies cannot communicate effectively with each other and 
their citizens because they are not connected.

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 one percent of the world¡¯s international bandwidth capacity. Asa 
result of this ¡®missing link¡¯, the region relies on satellite 
connectivity, with costs amongst the highest in the world.

One Kenyan call-center entrepreneur told the World Bank Board of
Directors the region simply cannot compete. ¡°To put 25 agents on the 
phone, it will cost us close to US$17,000 a month. Elsewhere, it will 
only cost US$600-900 a month¡± said Nicholas Nesbitt, CEO of KenCall. 
¡°It is absolutely imperative that something be done right now to make 
bandwidth affordable. Otherwise, we¡¯re going to miss a huge opportunity 
and people are simply going to say that Africa is not ready for these 
kinds of jobs, is not ready for business.¡±

The Board of Directors responded to the appeal and Governments¡¯
requests for assistance by unanimously endorsing RCIP, which will bring 
affordable high speed connectivity to as many as 25 countries1 in East 
and Southern Africa. The US$164.5 million first tranche of funding 
consists of IDA credits in the amount of US$114.4 million to Kenya and 
US$30 million to Madagascar, and an IDA grant in the amount of US$20.1 
million to Burundi.

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 communications is essential for economic
competitiveness¡± said 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.¡±

RCIP financing of terrestrial networks will be a catalyst to attract and
maximize private sector investment in telecommunications infrastructure.
RCIP complements regional undersea cable initiatives, such as the 
Eastern Africa Submarine Cable System (EASSy) developed by 
telecommunications operators with support from the International Finance 
Corporation (IFC) and other development partners.

By the end of the Program, it is expected that all capitals and major
cities in East and Southern Africa would be linked to competitively 
priced high-bandwidth connectivity. This will equip Africa to trade on a 
level playing field, extend education beyond the classrooms, and 
accelerate good governance.

###

To watch the RCIP video presented to the World Bank Board of Directors,
visit
www.worldbank.org/rcip/video <http://www.worldbank.org/rcip/video>

For information on the Africa Regional Communications Infrastructure
Program,
visit www.worldbank.org/rcip <http://www.worldbank.org/rcip>

For more information on the World Bank in Africa, visit
www.worldbank.org/africa <http://www.worldbank.org/africa>

Background Information
The World Bank Group¡¯s Work on Information and Communication
Technologies (ICT)
The World Bank RCIP initiative to leverage private sector investment in
terrestrial networks and the IFC support to the private sector-led EASSy
submarine cable are part of a broader joint World Bank/IFC effort to
address
connectivity issues and promote private sector participation in Africa.
For the
past decade, the World Bank has focused on partnering with Governments to
deepen reforms and improve the investment climate for private sector
participation in the telecommunications sector. The World Bank endorses
private
competition in a level playing field environment, and is currently
partnering
with 30 countries in Sub-Saharan Africa in this area. The IFC is an early
financier and investor in Africa-based telecommunications private sector
operators who have now become regional leaders. The IFC is currently a
direct
or indirect financier for private sector telecommunications operators in 25
countries in Sub-Saharan Africa and has in the recent years mobilized
close to
US$1 billion for the sector. These efforts have played a role in creatinga
demonstration effect, which, coupled with positive changes in the
investment
environment, has contributed to changing the perception of investors towards
Africa, who are now attempting to replicate this success in other
infrastructure and business areas.

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-- 
Steve Song <ssong at idrc.ca>
Manager ICT4D Africa Programs
http://www.connectivityafrica.org
http://www.idrc.ca/acacia
International Development Research Centre
Tel. +1 613 236 6163 x2268  Mobile: +1 613 302 8233
Skype: steve_l_song

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