Malawi has been given the credit after World Banks Board of Executive Directors has approved an International Development Association (IDA) credit[1] of US$151 to Malawi, Mozambique and Tanzania.
This is the third phase of the Regional Communications Infrastructure Program (RCIP) a US$424 million regional program that will increase the availability of reliable communications services for citizens, businesses and governments in Eastern and Southern Africa.
Under RCIP 3, Malawi, Mozambique and Tanzania will receive US$20 million, US$31 million and US$100 million respectively.
This project is a very exciting development for Malawi. The country has had a lot of success in the development of basic voice services, but our international call costs and broadband internet are currently very expensive compared to the rest of the world, and beyond the reach of most people, said Timothy Gilbo, World Bank Country Manager for Malawi.
He added: This project will link Malawi to the world by fiber-optic cable, and reduce the cost of international connectivity which will in turn reduce the cost of international telephony and broadband internet service.
Despite considerable developments in the information and communication technology (ICT) sector in Africa over the last ten years, the region still has the worlds lowest telephone and Internet user penetration and highest costs.
Economic development in Eastern and Southern Africa is held back by prohibitive ICT costs and limited communications infrastructure, said Rick Scobey, World Bank Acting Director for Regional Integration in Sub-Saharan Africa.
RCIP is helping the region to leverage the exciting developments in the sector and overcome the challenges through a combination of sound policy and regulatory frameworks, competitive market structures, and catalytic investments into public-private partnerships to accelerate roll-out of infrastructure networks.
Ultimately, RCIP will make affordable Internet and voice communications services more widely available, and in turn create new opportunities for employment, regional trade, social participation, and government efficiency. The recently launched submarine cable projects, together with such national backbone networks are already driving down substantially the costs of broadband connectivity in Africa, said Mohsen Khalil, World Bank Group Director for Global Information and Communication Technologies.
RCIP 3 is a further milestone in the World Bank Groups commitment to the goals of the Connect Africa Summit, which was held in November 2007 in Rwanda.
As a result of the Summit, the World Bank Group and the African Development Bank have partnered to help Africa achieve the Summit goals by mobilizing funds to invest in infrastructure and applications, advising on the policy and regulation of the ICT sector across the continent, and helping with the design and implementation of national e-strategies.
The first phase of RCIP was approved by the Board of the World Bank in March 2007, providing assistance to Burundi, Kenya, and Madagascar, with a combined IDA volume of around US$164.5 million.
The second phase, a US$24 million IDA grant for Rwanda, was approved in September 2008.
RCIP complements regional undersea cable initiatives such as the Eastern Africa Submarine Cable System (EASSy) developed by telecommunications operators with support from IFC and other development partners.
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