The Executive Board of Directors of the World Bank Group has announced its endorsement of the $215 million, ten-year Central African Backbone Program (CAB Program). This program will support the countries of the Central African region in developing their high-speed telecommunications backbone infrastructure to increase the availability of high-speed Internet and reduce end-user prices. The CAB Program will also help countries harmonize the laws and regulations that govern the ICT sector to increase private sector investment and improve competition.
Three countries – Cameroon, Chad and Central African Republic (CAR) – are participating in the initial $26.2 million phase of the Program. A further eight countries are also eligible to participate in the Program—Republic of Congo, Equatorial Guinea, the Democratic Republic of Congo, Gabon, Niger, Nigeria, São Tomé and Principe, and Sudan.
The CAB Program brings much needed connectivity to Central Africa. Until now, people in Central Africa have the lowest quality and highest cost Internet and telephone services in Africa. The population pays up to two times more in monthly Internet rates than people living in other African countries, and up to three times more than those living in other parts of the world. “The CAB Program is very important for the countries involved and lies at the heart of their development strategies. It will assist countries to strengthen their enabling environment, create competition and, ultimately increase access and lower the costs for end users,” said Mary Barton-Dock, World Bank Country Director for Cameroon, Chad and Central African Republic.
In its recent Information and Communications for Development 2009: Extending Reach and Increasing Impact, the World Bank found that for every 10 percentage-point increase in high speed Internet connections there is an increase in economic growth of 1.3 percentage points. The report also identifies the mobile platform as the single most powerful way to reach and deliver public and private services to hundreds of millions of people in remote and rural areas across the developing world.
“Ultimately, our goal is to develop regional and national broadband backbones and significantly reduce the cost of ICT services in Central Africa. Through better and affordable connectivity, the aim is to leverage the transformational powers of ICTs to support economic growth, SME development, employment creation, productivity gains and trade integration in the region,” says Mohsen Khalil, Director of Global Information and Communications Technologies at the World Bank Group.
The CAB aims to raise USD98 million from the private sector, with help from the International Finance Corporation. The initial USD26.2 million lending approved by the World Bank is split as follows: Cameroon USD9.9 million, Central African Republic USD7.3 million, Chad USD9 million.
ITNewsAfrica.com
