The World Bank will allocate funding to Southern Africa to continue building optical fibre broadband infrastructure.
The bank says its Regional Communications Infrastructure Programme (RCIP) - which aims to improve the region's access to international connectivity by focusing on closing the terrestrial connectivity gap - is still a priority.
The programme was announced in March 2007 and the bank allocated $424 million funding to complete its work. Some $164.5 million was allocated to Kenya, Burundi and Madagascar as part of the first phase of the programme. Another $24 million was allocated to Rwanda as part of the second phase of the project in 2008.
Speaking at the recent Nepad summit, held in Sandton, Ruth Kagia, World Bank country director for SA, stated that funding of regional ICT integration programmes was still key for the World Bank. Other eligible countries in the region will join future phases of the programme on a “readiness basis”, she noted.
According to the World Bank, the aim of the programme is to extend the reach of broadband networks and to lower telecommunications prices for international capacity. Another goal is the implementation of e-government applications - measures which will improve government efficiency and transparency, it says.
The programme was created after calls from various governments in the region requesting funding from the bank for the development of communication infrastructure. The World Bank recognised 20 countries which lacked direct terrestrial access to global information and communications infrastructure and networks and relied on satellite connectivity to link up with each other and the rest of the world.
Small successes
The bank reported that, by the end of the project in Kenya, its major cities would be linked to competitively priced high-bandwidth connectivity. It added there would be lower prices for international connectivity which would decrease the cost of doing business and improve private sector investment opportunities in the region. Universities, schools and hospitals would benefit; and governments would be able to deliver services to citizens more efficiently, online.
According to the World Bank, by the end of 2008, 51 universities and technical colleges across Kenya had improved Internet connectivity and over 300 Digital Village centres were created across the country, making it possible for people in rural areas to make phone calls or access online government services. The call centre industry also reported improvements as its operation costs were cut.
Small steps
Kagia, in her presentation, also noted the importance of increasing competition in the telecoms sectors as a way to lower costs to consumers. She also stated World Bank funding in developing countries is to help them increase market size, achieve economies of scale, and connect landlocked countries to global trade routes.
The fact that the region only accounts for less than 1% of the world's international bandwidth capacity, is something that needs to be changed, she emphasised.
Kagia also added that the RCIP would continue to finance terrestrial networks and complement regional infrastructure initiatives developed by telecoms operators and other development partners.
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