Telecommunications Market Development Overview
The Eastern Africa Regional Digital Integration Project (EARDIP) is a World Bank financed series of projects aimed at advancing digital market integration in Eastern Africa by enhancing cross-border broadband connectivity, data flows and digital trade. The EAC initiative consists of 4 components, including Component 1: Connectivity Market Development and Integration. Within this, the EAC leads Sub-component 1.3, focusing on modernising policies, harmonising cross-border telecom infrastructure, strengthening institutions and fostering competition to attract private investment.
Ultimately, these activities contribute to the creation of a unified, competitive telecom sector, driving regional integration and economic growth across the Community.
Current Status
The EAC region has made notable strides in digital connectivity, fuelled by investments in telecommunications infrastructure. The massive rollout of national optical Fiber networks has boosted internet speeds as undersea cables like SEACOM, EASSy and TEAMS enhance international bandwidth by linking the region to global networks. The region boasts nearly 100% mobile SIM penetration, with the mobile money revolution driving financial inclusion. However, gaps remain and these have necessitated stronger policy and institutional frameworks in the telecommunications sector.
Regional initiatives, such as the East African Community One Network Area (EAC-ONA) for voice and data roaming, have reduced communication costs across borders, fostering greater economic integration. With growing public and private sector collaboration, digital transformation in Eastern Africa is accelerating, paving the way for enhanced trade, innovation, and socio-economic development.
Despite these developments, access remains highly uneven, particularly in rural, underserved, and borderland communities, where high costs, inadequate infrastructure, and limited service quality continue to hinder digital inclusion. Cross-border connectivity is hindered by inconsistent policies regarding infrastructure ownership, operation and management. These highlight the need for standardised guidelines including those for greening the infrastructure and promoting resource sharing in line with the climate change agenda.
Further, deployment of Next Generation Networks requires a coordinated Spectrum Strategy to address allocation issues, eliminate cross border interference and align policies with global standards to enhance competitiveness of the national networks.
As a result, access to affordable and high-quality broadband internet varies widely across the region, creating a fragmented digital landscape. This is attributed to several factors such as:
- High costs: Internet prices vary drastically, from USD4.64 in Kenya to USD21.06 in South Sudan for 2GB of data. (ITU, 2021)
- Infrastructure gaps: Landlocked countries rely on coastal neighbours for internet access, leading to higher prices and lower quality.
- Unequal broadband penetration: Ranges from 5% in South Sudan to 48% in Kenya.
Public-Private Partnerships (PPPs) are critical to bridge the estimated USD 100 billion investment gap for universal broadband by 2030 in Sub Saharan Africa, particularly in the rural and borderland areas. However, inconsistent policies and market fragmentation deter private sector participation, necessitating a harmonised regional PPP framework.
A regional digital market could help lower costs and improve service quality, ensuring that more people can connect online.