African Development Bank Group

1. PROGRAMME FOR INFRASTRUCTURE DEVELOPMENT IN AFRICA (PIDA)ITU Regional Development Forum 9-11 May 2012, Kigali, RwandaDr Zouli BONKOUNGOU, African Union COMMISSION, Addis Ababa African Union African Development Bank Group NEPAD

2. CONTENT • WHY PIDA • WHAT IS PIDA • PIDA STUDY PROGRESS. • PIDA OUTCOMES : ECONOMIC OUTLOOK • DIAGNOSIS FOR TELECOM/ICT SECTOR • OUTLOOK FOR TELECOMMUNICATION/ICT SECTOR • STRATEGIC FRAMEWORK OF TELECOMM/ICT SECTOR • PRIORITY ACTION PLAN (PAP) • PIDA CHALLENGES • CONCLUSION

3. I: WHY PIDA?-MergingContinental Initiatives on Infrastructure Development Joint Working Group AU Commission, NEPAD Sec., AfDB Decision to merge all initiatives Lessons learnt from AUC Studies & NEPAD MLTSF Project management plan Terms of Reference by Sector (Transport, Energy, ICT & Water)

4. I: WHY PIDA? Rationale for the merger • Common platform for infrastructure development in Africa • Rationalisation of a plethora of regional/continental initiatives • Harmonise donor intervention • Fast tracking Africa development and integration

5. II: WHAT IS PIDA? PIDA is : a program dedicated to facilitating continental integration, socioeconomic development and trade, through improved regional infrastructure,a Multi sector program with several components Major Components Supporting Components Telecom/ ICT Panel of experts Sector Studies Water Database Energy Transport

6. II: WHAT IS PIDA? : Objectives and Outputs Objectives Outputs • Vision on Africa’s infrastructure • Strategic objectives • Sector policies(enabling environment to support infrastructure development) • Regional and continental physical infrastructure projects • Priority projects and measures • Phases: Short term (2012-2020), Medium term (2020-2030) and Long term (2030-2040) • Rolling plan of priority actions • Financing • Monitoring & Evaluation process A Strategic Framework for 2040 Infrastructure Development Programme (2040) Implementation strategy & process

7. PHASE II PROGRAMMING PHASE III CONSENSUS BUILDING PHASE I : DIAGNOSIS INCEPTION PHASE III: PIDA STUDY PROCESS: STUDY STRUCTURE PHASES AND MEETINGS. Kick-Off Workshop, AddisAbaba 28-30 July 2010 Submission of INCEPTION REPORT 5th July 2010 Validation Workshop, Johannesburg 28-30 Sept 2010 Submission of Methodological Brief 15 September 2010 Phase I Workshop, Libreville 18-20 April 2010 Submission of Phase I Report 30 March 2011 Submission of Sector Briefs 15 June 2011 Review Workshop, Tunis 7 & 8 July 2011 Regional Workshops, Sept-Oct . 2011 Nairobi, Libreville, Abuja, Yamoussoukro, Rabat Submission of Phase II reports 15 September 2011 Submission of Phase III reports (Final Phase II Sectors reports incorporating Regional Workshops Comments, PIDA Study Synthesis), November 2011

8. III. PIDA STUDY PROCESS RECS MASTER PLANS OTHER EXISTING PROJECTS

9. IV: PIDA OUTCOMES: ECONOMIC OUTLOOK Economic outlook driven by population growth

10. IV: PIDA OUTCOMES: ECONOMIC OUTLOOK PIDA Economic Outlook- GDP projections to 2040 • PIDA’s macro and sector outlooks to 2040 are grounded on a 6.2% annual overall rate of growth of African GDP. • The main drivers of this growth are: • Population: 1,033;1,400;1,770 millions respectively in 2010, 2025 and 2040; • Increasing level of education; • Technology absorption

11. IV: PIDA OUTCOMES: ECONOMIC OUTLOOK From GDP projections 2040 to Sector Forecasts If the 6.2% average GDP growth is achieved: • Power demand will increase at an average annual growth rate of nearly 6%. • Transport volumes will increase 6–8 times, with a particularly strong increase of up to 14 times for some landlocked countries… • Water needs will push some river basins - including the Nile, Niger, Orange and Volta basins - to the ecological brink. • ICT demand will swell by a factor of 20 before 2020 as Africa catches up with broadband. THIS INCREASED DEMAND WILL REQUIRE ADEQUATE REGIONAL INFRASTRUCTURE THAT PIDA PROPOSES

12. V: DIAGNOSIS OF TELECOMMUNICATION/ICT SECTOR In 3 years (2009-2012), a move from a scarce and expensive resource to overflow of bandwidth, Migration from satellite to submarine cables, Availability of much more bandwidth for countries with submarine stations, Price reduction, International bandwidth is sufficient, along African coasts in term of: Quantity, Number of landing stations . L The worldwide Broad band challenge: high speed broadband Union Europe (27 countries) - « Digital Startegy for Europe 2020" South Korea: National 1Gbps Network for end users in2012 Japon : e-JapanPriority Policy" Singapore: New Generation National Broadband Network Australie: National Broadband Network Nouvelle-Zélande: Initiative ultra High speed Canada : National Broadband policy ; Brésil: Plano Banda Larga National Argentine: Argentina Conectada; Nigeria: Vision 20:2020

13. V: DIAGNOSIS OF TELECOMMUNICATION/ICT SECTOR

14. V: DIAGNOSIS OF TELECOMMUNICATION/ICT SECTOR

15. V: DIAGNOSIS OF TELECOMMUNICATION/ICT SECTOR While the overall availability of international and cross-continental capacity via submarine cables is sufficient and encouraging, the national and regional infrastructure is insufficient to take advantage of the submarine capacity, Only about 0.5Tbps (2.7%) of the 18Tbps of submarine capacity is available is currently in use on the continent .

16. V: DIAGNOSIS OF TELECOMMUNICATION/ICT SECTOR The map below shows the major terrestrial infrastructure in use by African operators (or under construction – i.e. in place by 2012)

17. VI: OUTLOOK FOR TELECOMMUNICATION/ICT SECTOR Outlook 2030 The figure below illustrates the expected explosion of capacity required to service Africa’s broadband demand in the coming decade

18. VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR • THE VISION: • To enable Africa to build an information society and an integrated digital economy (e-Africa 2025) in which every government, business and citizen has access to reliable and affordable ICT networks by:  • Doubling ICT’s contribution to GDP from 5% to 10% by 2025 • Satisfying African broadband demand at the least cost, while increasing accessibility and security of access • Promoting intra-African e-commerce • Increasing physical integration at the regional and continental levels. • supporting peace & security. • Objectives : • Increase ICT contribution to GDP from 5% to 10 % by 2025, • Satisfied the demand at low cost while ensuring access to all African countries to the e-World ; • Secure connectivity and promote intra-Africa e-commerce, • Increase accessibility for all Africans to local, regional, continental and international content and applications • Contribute to regional and continental physical and economic integration,

19. VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR Goals to reach the Vision – The Master Plan Guarantee of international access: Each country needs to have fibre access to at least two different submarine cables Guarantee of secure terrestrial routes: Each country needs to have access to its choice of submarine landing stations by at least two different terrestrial infrastructures Landlocked Countries charter: Land locked countries need to have guaranteed access to landing submarine landing stations in coastal countries Continental inter-connectivity: Each country shall be interconnected with terrestrial fibre infrastructure to its neighbour based on the most economic criteria Optimal International bandwidth use: Each country shall have a national IXP to ensure local interconnection between national operators to reduce the level of external interconnection Competitive open markets: Each country should have a competitive market in broadband services based on a combination of private and public infrastructure provided on an open access non-discriminatory approach Sustainable new infrastructure: all new infrastructure needs to be have sufficient capacity (fibres) to support the medium term vision (more than 10 years)

20. VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR • Summary of Actions required to meet the goals • Short term responses: 2012-2015 (in parallel): • In the short term, there are massive benefits to be gained simply by improving access to what is existing. This requires: • Efficient use of existing infrastructure. This will require creating an enabling policy/regulatory environment (especially through price regulation and non-discriminatory access requirements on SMPs) for: • Optimising the use of existing telecommunications fibre (reducing costs and providing access to all operators) and • Ensuring access to alternative infrastructure (transport/energy); • Connecting the priority missing links between countries and to submarine landing stations where needed. • Increasing national demand – opening markets to new access providers, establishing national traffic exchange points (IXPs), lowering ICT taxes and license/spectrum fees, supporting extension of national/international backbones to remote and rural areas (PPP/reverse auction), deploying fibre on alternative infrastructure • Establishing a more conducive environment for future fibre deployments.

21. VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR • Summary of Actions required to meet the goals • Short term responses: 2012-2015 (in parallel): • Deploying domestic satellite infrastructure to improve backbone reliability where there is only one fibre link, for broadcasting, and to fill the gaps in rural broadband coverage, especially in the remote areas where it may be many years before terrestrial infrastructure becomes available. • Supporting local and international content hosting and applications development – in particular e-government applications • Medium term (2015-2020): • Once the national enabling policy environments and institutional frameworks are in place, support new projects for regional and international fibre along major routes, especially where there is only one link • Improve availability of electricity for use in ICTs, especially in rural areas • Improve literacy levels nationally where needed • Long term (2020-2030): • More national routes and more competition on existing routes, especially from access to ducts of new transborder road and energy projects, locations mainly driven by market demand for capacity and resiliency

22. VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR SELECTION OF PROJECTS

23. VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR • INFRASTRUCTURE DEVELOPMENT PROGRAMME CONTINENTAL STRATEGIC ICT INFRASTRUCTURE THIS MAP SHOWS THE TARGET NETWORK ENSURING ACCESS TO ALL STAKEHOLDERS WITH QUALITY, SECURITY, AND HIGH LEVEL OF AVAILABILITY BY 2020

24. VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR • INFRASTRUCTURE DEVELOPMENT PROGRAMME Continental Strategic ICT Infrastructure: Belt Interconnection by 2020

25. VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR • INFRASTRUCTURE DEVELOPMENT PROGRAMME IXP MAP BY 2020 THE MAP IDENTIFIES EXISTING AND NEEDED IXPS ON THE CONTINENT

26. Cpclusion: Enable an information society and integrated digital economy in which all actors have access to reliable and affordable ICT networks VII: STRATEGIC FRAMEWORK OF TELECOMMUNICATION/ICT SECTOR

27. VIII: PRIORITY ACTION PLAN (PAP) For all the 4 sector PIDA PAP broken down into 51 projects/programs selected according to agreed criteria

28. VIII: PRIORITY ACTION PLAN (PAP)

29. BY SECTOR BY REGION VIII: PRIORITY ACTION PLAN (PAP): INVESTMENTCOST PAP Investment Cost: $68 bn - 2012-20

30. PAP Investment ($68 bn) VIII: PRIORITY ACTION PLAN (PAP): INVESTMENT COST

31. IX: PIDA CHALLENGES Operationalization of Institutional Architecture (IAIDA) for PIDA Implementation IAIDA • defines responsibilities of Continental, Regional institutions (AUC, NPCA, RECs) and Member States. • Builds on principles of subsidiarity. • Allows high level advocacy. • Provides a mechanism for reviewing performance and rolling over the PAP with access to the highest levels of the AU, RECs and Member States.

32. IAIDA

33. Financing will need to come mostly from domestic sources (public & private) IX: PIDA CHALLENGES PUBLIC MIX PRIVATE Country role in PIDA implementation • Projects are implemented by countries on whose territory they are located and by their agencies (public or private) • Countries are critical and efficient players • Implement “soft” components (harmonisation of continental and regional policies) • Financing project preparation, capital investment, operation and maintenance

34. X: CONCLUSION Unique example of multi sector and Actors Initiative • PIDA is a continental integrated program for the FOUR sectors • PIDA is based on a large consultative and consensual approach with all stakeholders • PIDA has benefited from the support of the international community • PIDA generated a momentum for the resources mobilization G8-20; TICAD-JAPAN, CHINA-FOCA; EU, BRAZIL .. • PIDA is a great opportunity for the international and African private sectors as well as the building ofefficient PPP PIDA Impacts • Competitiveness would be established in niche markets and in a growing spectrum of mainstream activities, including agriculture and manufacturing • Regional trade would be twice today’s share of continental GDP • Up to 15 million new jobs would be created.

35. MERCI OBRIGADO THANK YOU شكرا