World Bank’s $100m to lower ICT cost in Tanzania

Tanzania will receive $100 million credit from the International Development Association to extend its access to affordable communications services.

The country is one of three in sub-Saharan Africa that will benefit from the credit, amounting to $151 million, approved last week by the World Bank’s board of executive directors.

The International Development Association (IDA) is a financial arm of the World Bank.

Information obtained by The EastAfrican show that Malawi will get $20 million and Mozambique $31 million in this third phase of the Regional Communications Infrastructure Programme (RCIP3).

The $424 million regional programme will increase availability of reliable communication services for citizens, businesses and governments.

Despite considerable development in information and communication technology (ICT) sector in Africa over the past 10 years, the region has the world’s lowest and most expensive telephone and Internet user penetration. 

Tanzania had 400,000 Internet users as of March 2008, which is equal to one per cent of the population, says the International Telecommunication Union.

Mozambique had 200,000 Internet users, or 0.9 per cent of the population, Uganda 750,000 or 2.4 per cent, and Kenya 3 million users, or 7.9 per cent — the largest in the region.

“Economic development in East and Southern Africa is held back by prohibitive ICT costs and limited communications infrastructure,” said Rick Scobey, World Bank’s acting director for regional integration in sub-Saharan Africa.

Mr Scobey said the Regional Communication Infrastructure Programme will help the countries leverage the exciting developments in the sector and overcome various challenges faced.

This can be realised through a combination of sound policy and regulatory frameworks, competitive market structures and catalytic investments in public-private partnerships.

In Tanzania, the project will strengthen the policy and regulatory environment.

It will also target priority groups such as the private sector by enabling a national business portal for all registration information and a telemedicine system for Muhimbili National Hospital.

The project intends to scale up the national vital registration system, enhance accessibility of land records through websites and mobile phone text messages, and develop an eProcurement scheme for the Medical Stores Department.

John Murray McIntire, World Bank Country Director for Tanzania, Uganda, and Burundi, said the Regional Communications Infrastructure Programme will support the implementation of the government’s National ICT Infrastructure Development Programme.