ICT Financing Needs and Trends
The key development challenges for ICT infrastructure are to broaden access to ICT services to isolated areas within countries, and build-up an inter-continental and intra-regional fibre optic network to reduce the cost of international communications, in particular internet usage.
There is not a major public or private funding gap for sub-Saharan Africa to meet its ICT development goals.
To ensure universal voice connectivity within Africa the AICD study estimates an annual need of nearly $650 million over the next eight years, which equates to an average of about 0.09% of combined GDP.
The estimated cost of the completion of the intercontinental infrastructure would be US$1.8 billion, while intra-regional connectivity is estimated to amount to $400 million, with the private sector playing a major role.
In addition to these relatively modest investment needs, governments need to provide the necessary policy framework, which includes removing barriers to competition and creating a sound regulatory environment to enable the private sector to meet its full potential.
Chart: ICA commitments to the ICT sector by region 2006 to 2007.
Source: ICA
It is important to recognise that in addition to the technological and infrastructure challenges Africa, like the rest of the world, faces a huge skills shortage. Regulatory environments also have to enable companies to adapt their workforces to new opportunities and not be aligned with narrow nationalist agendas which preclude effective participation in the global economy.
Total commitments by ICA members to the ICT sector were $542 million in 2007.
Case Studies
ICT – The East African Submarine System (EASSy)
In 2003 the NEPAD E-Africa Commission presented the proposed East Africa Submarine Cable System Project, deemed essential to providing broadband access to countries along the East African coast.