ICT challenges for Somalia

…. and how the World Bank can help

2-3 June 2015

Dr Tim Kelly, Lead ICT Policy Specialist, World Bank

Parliamentarian Workshop, World Bank, Nairobi

1

ICT Growth Trends in Africa

African penetration World penetration

45

69

10

19

0

20

40

60

80

2010 2011 2012 2013 2014*

Mobile Mobile broadband

Fixed broadband Internet

0

20

40

60

80

100

Mobile Mobile broadband

Fixed broadband Internet

Source: ITU.

How does Somalia compare? Mobile

6

25 27 28

44 49

56 57

71

Eritrea SouthSudan

Ethiopia Djibouti Uganda Somalia Tanzania Rwanda Kenya

Mobile subscriptions (per 100 people), 2013

Monopoly

Source: ITU.

How does Somalia compare? Broadband

0.5

1.8 1.9

3.6

7.7

9.0

10.9

0

2

4

6

8

10

12

Somalia SouthSudan

Djibouti Uganda Kenya Ethiopia Tanzania

3G (2013) (per 100 people)

Source: ITU.

How does Somalia compare? Mobile Money

12 17

20

31

42

Djibouti Tanzania Uganda Somalia Kenya

Account at formal financial institution

Source: Adapted from Global Findex (http://go.worldbank.org/1F2V9ZK8C0)

3 3 5

13

26

Djibouti Uganda Tanzania Kenya Somalia

Mobile phone used to pay bills

6

20 25

32

67

Djibouti Tanzania Uganda Somalia Kenya

Mobile phone used to receive money

4

14 20

32

60

Djibouti Tanzania Uganda Somalia Kenya

Mobile phone used to send money

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Price of mobile broadband (GB/month)

Price of fixed broadband (1 Mbit/s month)

Ch

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Mal

i

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Gu

inea

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inea

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Togo

Tan

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Mad

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Nam

ibia

An

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Eth

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Nig

eria

Bo

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ana

Zam

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&…

Sou

th A

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Gab

on

Mau

riti

us

Mal

awi

Gh

ana

Landlocked (Average Price: 438.82 USD PPP)

Coastal (Average Price: 206.61 USD PPP)

3000

2000

1000

600

500

400

300

200

100

0

8

How the internet affects development

9

ICTs driving development in East Africa

2.7%

3.9%

3.4%

2.5%

2.9%

0%

1%

1%

2%

2%

3%

3%

4%

4%

5%

2009 2010 2011 2012 2013

Communications sector as a % of GDP (constant prices)

Tanzania

Kenya

Rwanda0.5% 0.2%

0.8%

5.7% 5.1%

6.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Kenya(2013)

Rwanda(2013/14)

Tanzania(2012)

GDP growth

Comm. sector contribution to GDP growth

Source: National statistical offices.

8% 11.5% 3.2%

Share of GDP growth

10

WBG ICT engagement in Somalia

Phase 1: Signed in May 2014 (US$2m) Funded by State and Peace-building Fund Component 1: Enabling Environment, including legal and regulatory support Component 2: Enhancing Connectivity, including IXP and Communications Rooms

Phase 2: 2015-2018 (US$14m + US$1.5m EU funding) Funded by Somalia Multi-Partner Fund and AfricaConnect program Component 1, including regulatory support and legal framework for mobile money Component 2, including expanded Communications Rooms program, support for Somalia Research and Education Network (REN) and SIM Card registration Component 3: Project Management

Possible Phase 3: PPP options for backbone infrastructure Proposed under Horn of Africa Initiative Preparatory funding from Public Private Infrastructure Advisory Facility (PPIAF) North coast festoon cable Terrestrial backbone network

11

The first mile The middle mile The last mile The invisible mile Network components

International internet access, including landing stations, satellite dishes, etc.

National backbone and inter-city network

Local access network Non-visible network components, including spectrum, border crossings, cybersecurity

Competition policies

Licensing of ISPs

Liberalization of international gateway

Licensing of satellite dishes and orbital slots

Domain name registry

Licensing of nationwide operators

Interconnection & Infrastructure sharing

Cross-sector participation

Licensing of local operators

Unbundling the local loop

Value-added service providers, including mobile money

Market mechanisms (e.g. auctions and resale) for spectrum assignment

Access to essential network facilities, including address database

Public / Private Partnership

Privatization of international gateways

Participation in int’l cable and satellite consortia

Regulation of legal intercept

Privatization of the incumbent operator

Establishment of IXPs

Local hosting of content

PPP approach where market fails (e.g. rural areas)

Universal service obligations

Virtual landing stations (for landlocked countries)

Computer Security Incident Response Team (CSIRT)

Effective regulation

Opening to foreign ownership and investment

National representation at relevant national and regional bodies (e.g. ITU, ICANN, WTO)

Safeguards on significant market power

Open access rules for national backbone

Rights of way for linear infrastructures

Open access rules for local loop and central office exchanges

Coordination of planning permission for public works among operators and utilities.

Spectrum management and refarming

SIM card registration

Data protection

Key regulatory decisions

ICT Sector Support in Somalia, Phase 2

• Component 1: Establishing an enabling environment (US$4.5m) – Ongoing ICT Regulatory Support, including passage of Communications

Act, establishing ICT regulatory agency and capacity building – Regulatory framework for mobile money, including regional

benchmarking study and preparation of draft legal documents, in collaboration with Central Bank, MoF, private sector etc

• Component 2: Efficiency and equity in access to connectivity (US$7.8m + US$1.5m EU funding) – Establishing a framework for SIM Card Registration – Supporting connectivity in the higher education sector, including through

advance purchase of bandwidth capacity for the Somalia REN, establishing a network operation centre and capacity-building

– Extending communications rooms to key ministries, across the Federal Government and extending also to Puntland, Somaliland and other economic zones

• Component 3: Project Management and coordination (US$1.7m)

Horn of Africa, Connectivity

Gaps

Consultations with stakeholders

• Stakeholder workshops and bilateral meetings

• In Nairobi (in September 2014 and January 2015)

• In Mogadishu (in April 2014 and September 2014)

• In Puntland (in February 2014 and March 2015)

• In Somaliland (in April 2014)

• With Jubbaland and South West (at events in Nairobi, January 2015)

• World Bank Appraisal Mission

• December 1-12

• Consultations with Government

• Briefings with Ministries of Finance and Higher Education and with Office of the President and Office of the Prime Minister

• Workshop with Parliamentarians, June 2-3 2015

Coordination with development partners

• Joint missions and project preparation with AfDB

• The two teams conducted the Mogadishu part of the ICT Needs Assessment study together in Nov/Dec 2013

• Coordination with AU/UN Info Support Team

• Joint funding of program with EU Africa Connect

• Joint workshop with ITU, Nairobi, 22-23 September 2014

• SDRF endorsement, March 23, 2015

• ICT Development Partners in Somalia (hosted by World Bank)

• First meeting, Oct 3 2013

• Second meeting, Feb 7 2014, with private sector

• Third meeting, May 5 2014, with H.E Minister Ibrahim

• Fourth meeting, September 24, 2014

• Fifth meeting, June 8 2015, with H. E. Guled Kassim

Thanks

• Axel Rifon Perez (arifonperez@worldbank.org)

• Rachel Firestone (rfirestone@worldbank.org)

• Tim Kelly (tkelly@worldbank.org)