- Country Sao Tome and Principe
- Estimated Investment USD 6.00 million
- Approved GIF Funding USD 0.80 million
- Sector ICT
- Project Type
Project Preparation and Structuring Activity (Feasibility studies)
- Implementing Partners WB
- Expected Project Completion Date 30-04-2024
- Theme Climate Smart, Connectivity and Integration
Challenge
Inadequate telecommunication services has been identified as one of the limiting factors for continued sustainable economic growth. The country's ICT sector is characterized by high access costs, limited competition, and unreliable telecom networks. Mobile (3G) broadband services reach 95% of the population in major cities, however, only about 36% currently uses mobile broadband. ITU estimates suggest that a mobile voice and data plan with 1.5GB of data per month cost about 6% percent of monthly income in 2020, while a fixed broadband package cost 19% of average monthly income. These challenges are significantly more pronounced for inhabitants of Principe as it depends on digital connectivity with Sao Tome via an inter-island microwave radio link deployed in 2015 and is nearing capacity and has thus become unreliable, especially during seasonal precipitation lasting from September through May.
Solution
To remedy Principe's constrained digital connectivity the government, with support from the World Bank, intends to build/install a 175km fiber optic submarine cable. To ensure long-term operational sustainability of the cable, the government sought GIF support to structure a PPP transaction to select a private operator to co-finance the construction of the cable as well as its operations and maintenance.
Expected Impact
The project is expected to increase access and affordability of broadband internet services in Sao Tome and Principe, improve government capacity for digital service delivery and provide updated socioeconomic information.
