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Digitalizing Eastern and Southern Africa

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Overview

Digitalization presents immense opportunities for development in Eastern and Southern Africa, including job creation, poverty reduction, and improved service delivery, but current levels of internet availability and access are insufficient and uneven. The region currently has the lowest rate of digitalization globally, with high-speed internet coverage at only 64% and usage at 24%.

Countries across the region are facing similar challenges to digitalization including limited internet coverage, especially in rural areas, inadequate data infrastructure, affordability issues for data and devices, and risks related to cybersecurity and data protection. To realize the benefits of digitalization, countries need to strengthen digital infrastructure, promote regulatory harmonization, enhance digital skills, and address gender disparities in access to digital services.

Digitalization is a key priority for the World Bank¡¯s Eastern and Southern Africa region, to ensure that every individual, business, and government will be digitally enabled by 2030. To achieve this, the region is supporting investments in digital infrastructure, skills, platforms, and regulatory regimes.

Countries in AFE have varying levels of usage gap and coverage gap

Revolutionizing the region¡¯s digital landscape - IDEA

Å·ÃÀÈÕb´óƬ¡¯s program (approved June 27, 2024) is setting out to revolutionize the region's digital landscape, helping achieve universal digital access by 2030, in line with African Union and UN objectives. This ambitious initiative aims to increase access to the internet and the inclusive use of digitally enabled services that will benefit over 180 million people (half women) in 15 countries (starting with Angola, the Democratic Republic of Congo, and Malawi) and Regional Economic Communities. With a budget of up to $2.48 billion, IDEA is financed through the International Development Association (Å·ÃÀÈÕb´óƬ) and the International Bank for Reconstruction and Development (IBRD).

Digital Inclusion is Key

Increased accessibility of broadband services, accompanied by enhanced affordability and service quality, leads to higher inclusion. Digital inclusion, in turn, has a positive impact on creating jobs and reducing poverty. In 2023, the World Bank¡¯s Digital Africa: Technological Transformation for Jobs flagship report) found that in Tanzania, extreme poverty declined by about 7% after three or more years of exposure to internet coverage, while labor force participation and wage employment increased by up to 8%.

Today, a woman in Eastern and Southern Africa has only a 34% chance (vs 41% for men) to have made or received a digital payment in the last year. There are multiple factors hindering women¡¯s access to and use of digital tools, including affordability, literacy, digital literacy, ID requirements, risk of online abuse, and lack of content/applications/services targeting women.

Digital inclusion can and is benefiting women and girls, as well as populations in underserved areas, in many African countries. For example, in Uganda, a 2021 World Bank collaboration with the EQUALS Global Partnership¡¯s Access Coalition, GSMA, Trickle Up, and AVSI launched a women¡¯s digital literacy and inclusion pilot among refugee and host community participants. Participants reported a fourfold increase in basic digital skills. Over 90% of women reported having ownership and control of digital devices, as well as new or improved income-generating and/or employment opportunities. In Ethiopia, over 900,000 poor households in drought-prone communities received their benefits in electronic accounts in 2023, 43% of which are owned and operated by women. In Mozambique, the Social Protection and Economic Resilience Project increased the number of families with children in the poorest districts that received social protection transfers through digital payments 121-fold between 2021 and 2022.

The IDEA program aligns with the region¡¯s and with the World Bank¡¯s Strategy to Accelerate Gender Equality for a Sustainable, Resilient and Inclusive Future, 2024¨C2030, specifically its second pillar that aims to expand and enable economic opportunities for women. Particularly, IDEA seeks to encourage the promotion of economic opportunities for women through additional connectivity support, affordable smart devices, and training for women and female-headed households.

IDEA Country Factsheets

The Angola Digital Acceleration Project, under IDEA, aims to accelerate digital inclusion, increase access to digitally enabled services and unleash digital opportunities for the advancement of Angola¡¯s digital economy.

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The DRC Digital Transformation Project under IDEA aims to increase inclusive access and use of the internet and strengthen the foundations for digitally enabled services in the country. The $400 million Å·ÃÀÈÕb´óƬ credit, with additional co-financing of 100 million euros from the French Development Agency (Agence Fran?aise de D¨¦veloppement, AFD)¡ª will be implemented by a new Project Implementation Unit under the Ministry of Posts, Telecommunications and ICTs and Digital (MPTNTIC-N).

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The Digital Malawi Acceleration Project (DMAP), under IDEA, aims to increase access to, and inclusive use of, the internet and improve the government's capacity to deliver digitally enabled services. An initial grant of $70 million will be provided by Å·ÃÀÈÕb´óƬ and is expected to be increased later to a total of $150 million, which is predicted to mobilize an additional $50 million in private sector financing. DMAP will be implemented by the Public Private Partnership Commission (PPPC) and the Ministry of Information and Digitalization (MID).

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