Eastern Africa Regional Digital Integration Project SOP-II

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The proposed project follows EARDIP SOP-I (P176181) (Somalia, South Sudan, the Eastern Africa Community (EAC) and the Intergovernmental Authority of Development (IGAD)) and will include Djibouti and Ethiopia. Together with SOP-I, it will help to advance the integration of digital markets in the Eastern Africa region. The region has made significant strides to enable free movement of goods and services; the next challenge for the region will be enable cross-border flows of digital services. The project takes a holistic approach to supporting simultaneous integration of the connectivity (broadband services), data (enabling of cross-border flows of data), and online (enabling of cross-border digital payments, trade and commerce) markets across the region. Advancement in each distinct market layer is expected to create a virtuous cycle as each segment builds on another, reinforcing the development, expansion and integration of the region’s digital market. As part of EARDIP SOP II, the project will not finance the construction of undersea cables and submarine landing stations as Djibouti is already connected with nine submarine cables currently in service which provide plenty of capacity. Thus, there is no requirement to use capacity on any other cables that are planned or under construction in Djibouti, which implies that there are no associated facilities with SOP II. The following components are proposed for the project, which would consist of a menu of activities from which participating countries and entities could choose. Interventions under each component would target both relevant regional bodies and individual countries and would be tailored to the needs of each individual recipient, considering the different stages of development within the region. The trajectory of the participants however would remain the same, e.g. moving towards the creation of a digitally enabled environment for regional integration and development.The project has four components plus a CERC. - Component 1 (“Connectivity Market Development and Integration”) will bridge existing network coverage and access gaps through catalytic infrastructure financing and support for an enhanced enabling environment to develop the regional broadband connectivity market. Under Sub-component 1.1, support will be provided to deploy upwards at least 1,500 kms of fiber network in Ethiopia and 300 kms in Djibouti, covering strategic cross-border and national backbone network links as well as their extension into borderland areas. Further, activities to be financed especially under Component 1 could stimulate development of telecommunication facilities/infrastructure by the private or public sector that may adversely affect natural habitats and biodiversity.- Component 2 (“Data market development and integration”),which contains two subcomponents, aims to enable the secure exchange, storage and processing of data across borders to support regional deployment and access to data-driven services, innovation and infrastructure, including reducing regional restrictions on the free flow of data and increasing investments into data infrastructure. - Component 3 (“Online Market Development and Integration”), which contains two subcomponents, aims to support the development and integration of the online market, which would enhance the enabling environment for the cross-border delivery and access of digital goods or services.- Component 4 (“Project Management and Implementation Support”) will provide technical assistance (TA) and capacity support for project implementation.- Component 5 ("Contingent Emergency Response Component") will allow for the rapid reallocation of IDA funds in the event of an eligible emergency declared in one of the participating countries.