Digital Transformation for Africa/ Western Africa Regional Digital Integration Program SOP1

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The project is designed around the three distinct but interconnected layers of the SDM framework. The three market layers are (i) a single connectivity market, removing barriers regional telecom infrastructure and services deployment, (ii) a single data market, enabling the secure exchange and processing of data across borders, (iii) a single online market, allowing the access and delivery of public and private services online and e-commerce across borders. Advancement in each market layer is expected to build on one another, which will reinforce the development and expansion of regional digital market integration efforts, and further drive affordable access to the Internet, digital trade and innovation and uptake in digital services. WARDIP would consist of a menu of activities from which participating countries and entities could choose under the following components. Component 1. Enabling environment for the establishment of a continental SDM. This component will support AU´s strategic vision of creating an SDM in Africa by 2030. This component will support the development of appropriate policies and regulations to foster coordinated digital transformation in the continent. Leveraging on continental policies developed by the AU, a key element will be a comprehensive training program open to policy makers, decision takers and regulators from all countries in Africa across key foundations for digital transformation. The training program will ensure that policymakers, decision takers and regulators keep pace with advances in digitalization, address the new policy and regulatory frontiers underpinning single digital markets and create the foundation upon which digital transformation can achieve its full potential. This component will create more common knowledge and competencies as well as peer-learning for the target population to design, draft and implement digital policies and regulations required to promote a vibrant (i.e., competitive), safe, inclusive, and sustainable (i.e., green) digital transformation that will foster the emergence of a secured SDM in Africa with focus on Agile regulation, data economy and green digital.Component 2: Connectivity Market Development and Integration. This component aims to develop and integrate the regional connectivity market in a way that encourages private sector competition and investments. Market failure in the telecom sector will be addressed by (i) strengthening the policy and regulatory framework for a competitive telecommunications/ broadband sector to foster a more leveled playing field across the region, (ii) providing catalytic public funding to connectivity infrastructure PPP projects particularly to increase the resilience of international connectivity and core backbone connectivity, and (iii) coordinating between stakeholders to stimulate private investment appetite. This component will also introduce interventions to harmonize digital market environment and sector policies on various aspects critical to ensuring cross-border interconnection of networks and services. Finally, this component is designed to establish a framework that ensures that digital infrastructure-related investments in the region are energy-efficient and climate-resilient by design. This framework will anticipate, mitigate, plan for, and adapt to changing climate conditions. Component 3: Data Market Development and Integration. This component aims to build trust in online transactions and strengthen the security and resilience of digital infrastructure and systems as a prerequisite for a functioning SDM. It will support reforms to enable secure cross-border data exchange, storage, and processing to support regional deployment and access to data-driven services, innovation, and infrastructure. Improving the legal and regulatory environment for cybersecurity, data protection, and privacy – leveraging on the findings and recommendation of the WDR2021 on Data for Better Lives - is critical for the regional data market. It will support the development of a harmonized data and cybersecurity enabling environment and create the appropriate incentives for public and private deployment of data-driven services. This component will incorporate energy-efficiency considerations into procurement of hardware and software.Component 4: Online Market Development and Integration. This component aims to promote creation, access and delivery of digital goods and services seamlessly and freely across the region. This component is designed to support the harmonization of infrastructure and regulatory frameworks as well as removing barriers to cross-border delivery and access to digital goods and services, and supporting the creation of new digital ser vices. A regional integrated online market will allow firms, governments, and citizens to access and deliver both public and private services online; undertake e-commerce transactions; and access digital content and information seamlessly from anywhere in the region. The component will foster digital entrepreneurship ecosystems that facilitate innovation while harmonizing technologies and legal frameworks for digital payments and promote and enable e-commerce transactions. It will also emphasize initiatives to increase service uptake by enhancing digital literacy and skills and expanding the availability, effectiveness, and quality of key public online services for regional integration to acquaint people with use of e-services. This work requires harmonizing Digital Financial Services (DFS) frameworks and infrastructures individually, to align them with international standards and achieve integration as a precursor for e-commerce. Component 5: Project Management and Implementation Support. This component will finance support to the recipients’ project management and implementation of project-associated activities, including procurement, financial management (FM), monitoring and evaluation (M&E), project communication, environmental and social safeguards, and citizen engagement. It will cover the operating costs of the project implementation units (PIUs) in each participating country and regional and continental entity and help strengthen the technical and functional capacity of the PIUs, including by recruiting expert consultants and facilitating on-the-job learning and competency transfer. In addition, capacity building support would be provided to the PIUs to strengthen coordination pertaining to the project between the member states and other regional bodies. It will support independent audits and quality assurance to ensure compliance with procurement and financial management best practices, as well as M&E (including collecting gender disaggregated data) for the implementation of activities. In addition, support with upgrade and enhancement of IT equipment and systems in the ECOWAS Commission will be financed. This component will include US$1 million in counterpart financing from the Government of Mauritania to finance PIU expenses not covered by the project. This component will also support Environmental and Social Framework (ESF) compliance, with a particular emphasis on addressing the high security- and GBV-related risks associated with the deployment of infrastructure and civil works, including stakeholder consultation, a robust grievance redress mechanism, and development of site-specific assessments and plans. Component 6: Contingent Emergency Response Component. In recognition of the Western Africa region’s and countries’ vulnerability to shocks, a contingent emergency response component (CERC) is added to the project structure to help participating countries respond swiftly to eligible crises and emergencies, including climate and natural disasters and public health emergencies, with a provisional allocation of US$0, in accordance with Operational Policy for Investment Project Financing, paragraphs 12 and 13, for projects in urgent need of assistance or capacity constraints. This comp