ARUSHA, September 14, 2024 — The East African Community [EAC] and the Intergovernmental Authority on Development [ IGAD ] are set to commence implementation of the Eastern Africa Regional Digital Integration Project [EARDIP], a transformative initiative aimed at improving digital connectivity and integration across Eastern Africa.
Speaking during an EARDIP Regional Coordination and Implementation Workshop in Dar es Salaam, Tanzania, the EAC Deputy Secretary General in charge of Customs, Trade and Monetary Affairs, Annette Ssemuwemba, termed the project a game-changer for Eastern Africa.
“This project will create a more interconnected, inclusive, and prosperous region. We are laying the foundation for a thriving digital economy that will benefit businesses and citizens alike,” said Ssemuwemba.
“With EARDIP, we are not just addressing the challenges of today, but we are building the digital infrastructure of tomorrow,’ she said.
She said that the project would unlock the region’s potential, creating opportunities for innovation, trade, and economic growth that will uplift millions.
“It will also ensure that no one is left behind as we transition to a more digital and interconnected future,” she added.
On his part, the IGAD Director of Economic Cooperation and Regional Integration, Dr. Mohyeldeen Eltohami Taha, underscored the significance of regional collaboration in driving digital transformation.
“EARDIP represents a bold step towards a more connected and integrated Eastern Africa. By working together, we are setting the stage for a digital revolution that will boost economic resilience, improve service delivery, and enhance regional integration,’ said Taha.
Taha said that the project will empower the people of Eastern Africa with the tools they need to participate fully in the global digital economy.
“Our collaboration with EAC through EARDIP underscores our commitment to ensuring that no country or community is left behind in the digital era,” he added.
Speaking during the workshop that brought together the EAC, IGAD and the World Bank, the World Bank Senior Digital Development Specialist, Ms. Cecilia Paradi-Guilford, emphasised the Bank’s commitment to supporting digital transformation in the region.
“The World Bank is proud to support EARDIP, as we believe that digital integration is key to unlocking the full potential of Eastern Africa,” said Paradi-Guilford.
“By funding this initiative, we aim to bridge connectivity gaps, lower the cost of digital services and foster inclusive growth. Our goal is to ensure that this project not only enhances economic opportunities but also improves access to essential services for millions of people across the region,” she said.
The ambitious World Bank-funded project is set to revolutionise the digital landscape in the region, addressing key challenges and providing immense benefits to Member States of both regional blocs. EARDIP has been specifically designed to overcome significant barriers currently affecting the digital economy in Eastern Africa, particularly connectivity, cybersecurity and access to online markets.
The Eastern Africa region faces significant gaps in its digital infrastructure, with highly developed urban areas often benefiting from advanced technologies, while rural and remote regions remain underserved. This digital divide hampers access to high-speed internet, modern communication systems and reliable digital services in underserved areas.
As a result, communities are often excluded from the digital economy, limiting their ability to access essential services such as e-commerce, online education and telemedicine. Additionally, inconsistent infrastructure across borders impedes seamless cross-border communication and collaboration, affecting regional integration and trade.
Many land-locked countries in the region face very high cost and lower quality internet, which further hinders affordability and accessibility. According to a 2021 report by the International Telecommunication Union [ITU], Measuring Digital Development: ICT Price Trends, the price of two gigabytes data packages in coastal versus landlocked countries ranged from US$ 4.64 in Kenya to US$ 21.06 in South Sudan.
The project therefore aims to bridge this gap by establishing a unified and comprehensive digital network that connects even the most isolated areas, promoting equitable access to digital resources and facilitating 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.
In addition, the project is set to address the challenge of differing ICT regulations across countries in the region, which currently impede the seamless exchange of data, goods and services.
By harmonising digital policies and regulations, the project will facilitate smoother cross-border trade and communication, fostering greater regional integration and economic cooperation.
As Eastern Africa increasingly relies on digital platforms for communication, commerce and public services, the region has become more vulnerable to cybersecurity threats such as data breaches, hacking and cyberattacks. Many countries in the region lack robust, coordinated cybersecurity frameworks, leaving critical information infrastructure, businesses, and individuals exposed to these risks.
Without adequate protections in place, the rapid digital transformation may lead to significant financial losses, compromise sensitive information and disrupt essential services such as utilities, healthcare, banking, transport and government operations. This lack of preparedness further complicates cross-border collaboration, as inconsistent security measures between member states make it difficult to address these threats on a regional level.
To address these growing concerns, EARDIP is set to establish a comprehensive regional cybersecurity framework designed to safeguard digital infrastructure and protect users across member states. This includes implementing unified cybersecurity policies, sharing threat intelligence, and providing resources for capacity building in cybersecurity skills.
By promoting collaboration among countries, the project aims to create a secure and resilient digital ecosystem that can withstand and respond to cyber threats more effectively. This will not only enhance the safety and reliability of digital services but also foster trust among users, businesses, and governments, encouraging further investment and engagement in the region’s digital economy.
Further, the project seeks to address cross-border trade and payments barriers in the region. One of the major hurdles to expanding the regional online market in Eastern Africa is the lack of integrated and seamless cross-border payment systems. Currently, differing regulations, limited infrastructure, and high transaction costs hinder efficient cross-border trade and payments, particularly for small and medium enterprises [SMEs]. This fragmentation creates a significant barrier to the growth of e-commerce and digital service delivery, preventing businesses from reaching wider regional markets.
Without streamlined payment systems, consumers face delays and extra costs in conducting remote transactions, making it difficult to foster a competitive and inclusive digital economy. For example, Kenya and Ethiopia, two of the biggest economies in Eastern Africa, which also share a border, barely trade with one another. In 2023, the EAC total trade was US$ 80.6 billion, while intra-EAC trade accounted for only 15 percent of the EAC total trade at US$ 12.1 billion.
In addressing this challenge, the EAC region recently launched the EAC e-Commerce Strategy, which offers a framework that will contribute towards enhancing capacities for growth, improve legal and regulatory frameworks and increase trust in digital trade in the EAC region.
In the same regard, the EARDIP is set to eliminate these barriers by establishing policies and regulations that enable smooth cross-border transactions, such as e-signatures and interoperable payment systems. Establishing a legal framework that supports remote transactions is expected to facilitate more efficient digital service delivery, allowing businesses and consumers to engage in regional trade with confidence. This will accelerate the growth of a secure, accessible, and integrated regional online market, benefiting both businesses and consumers alike.
The EARDIP marks a transformative leap forward in the Eastern Africa region’s journey toward digital integration and economic modernization. By addressing key challenges such as fragmented infrastructure, regulatory differences, and cybersecurity vulnerabilities, EARDIP will not only strengthen regional ties but also drive innovation and unlock the vast potential of the region’s digital economy.
Through enhanced connectivity, streamlined policies, and secure digital environments, the project is set to create a more inclusive, competitive, and resilient marketplace. The project also provides a vital platform for continued collaboration between regional blocs and their member states, ensuring long-term growth and positioning Eastern Africa as a digital powerhouse in the global economy.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
Views: 15
-
-
-
-
