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EAC : Reducing Internet costs to boost regional trade

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EAC : Reducing Internet costs to boost regional trade

The World Bank is set to fund a new digital harmonization project in East African Community (EAC) member states. Currently, Internet prices in the region vary from 4.64 USD in Kenya to 21.06 USD in South Sudan. Integrated connectivity is poised to improve regional trade and strengthen integration efforts.

Lowering internet costs in the region

Internet prices vary significantly across East African countries, despite the region presenting itself as a single, integrated entity under the East African Community (EAC). However, efforts are underway to integrate connectivity by reducing the currently high Internet costs and improving cybersecurity.

This ambitious goal is to be achieved through a new platform supported by the World Bank: the East Africa Regional Digital Integration Project (EARDIP). Funded by the World Bank, EARDIP is an initiative of the Intergovernmental Authority on Development (IGAD).

To meet the two core objectives of reducing Internet and telecom costs and improving security the project must address significant digital infrastructure gaps that hinder access to high-speed Internet.

Laying the foundations for a digital economy

« For example, rural communities are often excluded from the digital economy, limiting their ability to access essential services such as e-commerce, online education, and telemedicine », commented EAC Deputy Secretary-General for Customs, Trade, and Monetary Affairs, Annette Ssemuwemba.

Speaking at a regional coordination and implementation workshop for EARDIP in Dar es Salaam, Tanzania, she emphasized that « inconsistent cross-border infrastructure hinders seamless communication and collaboration, which in turn affects regional integration and trade ».

This project will create a more interconnected, inclusive, and prosperous region, laying the foundation for a thriving digital economy that will benefit both businesses and citizens.

World Bank supported project

Supporting this optimism, IGAD’s Director of Economic Cooperation and Regional Integration, Dr. Mohyeldeen Eltohami Taha, described EARDIP as a bold step toward a more connected and integrated East Africa.

« By working together, we are laying the groundwork for a digital revolution that will enhance economic resilience, improve service delivery, and strengthen regional integration », Dr. Taha explained.

If the project proceeds as planned, Dr. Taha believes it has the potential to equip East African populations with the tools they need to engage in the global digital economy. Speaking on behalf of the project’s funders, World Bank Senior Digital Development Specialist Cecilia Paradi-Guilford said, « The World Bank is proud to support EARDIP because we believe digital integration is essential to unlocking East Africa’s full potential ».

Promoting equal access to digital resources

According to a report from the International Telecommunication Union (ITU), the price of a two-gigabyte data package in coastal and landlocked countries ranges from 4.64 USD in Kenya to 21.06 USD in South Sudan.

Titled « Measuring Digital Development : ICT Price Trends, » the report shows that many landlocked countries in the region face high costs and lower-quality Internet, further hindering accessibility and affordability.

The World Bank-backed project aims to bridge this gap by establishing a unified and comprehensive digital network that connects even the most remote areas of the region. Additionally, it seeks to promote equitable access to digital resources and facilitate cross-border communication, trade, and investment.

By lowering the cost of Internet access and improving infrastructure, EARDIP is expected to provide millions of people, including those in rural and underserved areas, with affordable and reliable digital services.

Harmonizing policies and regulations

The project will harmonize EAC digital policies and regulations, facilitate cross-border trade and communication, foster greater regional integration, and enhance economic cooperation.

As East Africa increasingly relies on digital platforms for communication, trade, and public services, the region lacks the necessary infrastructure for cybersecurity. Consequently, a digitized EAC faces data breaches, hacking, and cyberattacks.

Without adequate protections in place, rapid digital transformation could lead to significant financial losses, compromise sensitive information, and disrupt essential services such as utilities, healthcare, banking, transportation, and government operations.

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