EASSy construction starts
IFC, a member of the World Bank Group, announced today that construction has started on the East African Submarine Cable System (EASSy). EASSy will connect 21 African countries to each other and the rest of the world with high-quality Internet and international communications services (EASSy map here).
The necessary funds have been provided by the consortium of 25 telecommunications operators, which includes 19 African companies. The cable will be installed by Alcatel-Lucent along the sea bed off Africa’s east coast. It is expected to be operational by the first half of 2010.
“We are pleased to work with the EASSy Consortium in laying this new cable that will expand communications capabilities and help reduce the digital divide in the region,“ said Etienne Lafougère, President of Alcatel-Lucent’s submarine network activity.
Five major development finance institutions are partnering to provide the project’s long-term loan financing of $70.7 million, with $18.2 million coming from IFC. The balance of the project cost, $247.1 million, will be provided by the EASSy consortium members.
"We are very pleased that this long awaited submarine cable has formally been sponsored by the majority of the regional operators and by some of the leading international industry players,” said Mohsen Khalil, IFC Director for Global Information and Communication Technologies.
“This is a very important milestone toward implementation of the EASSy cable, which will transform the telecommunications landscape in the region. It will provide Internet and other communications access for 250 million Africans and substantially reduce costs for consumers and businesses.”
Consumers along Africa’s east coast typically pay between $200 and $300 a month for Internet access via satellite. These prices, some of the world’s highest, create a barrier to usage and restrict economic activity and growth.
Once the EASSy cable is in place, prices for international connectivity are expected to drop by two-thirds at the outset, and the number of subscribers will increase rapidly. Because the project gives open access to service providers, prices will fall further as volume and competition increase.
This is expected to stimulate the development of new knowledge-based industries, call-centers, and similar ventures. Educational and health activities in the region will also benefit from access to low-cost Internet.
In a separate initiative, the World Bank Group is assisting with the implementation of regional distribution networks to connect landlocked countries in East Africa to each other and the EASSy cable, helping maximize access.
The cable will run 10,000 kilometers from the continent’s southern tip, around the African horn, and into the Red Sea, connecting South Africa, Mozambique, Madagascar, Tanzania, Kenya, Somalia, Djibouti, and Sudan.
Another 13 adjoining countries will also be linked to the system as terrestrial backbone networks are completed through the broader World Bank Group initiative; these include Botswana, Burundi, the Central African Republic, the Democratic Republic of Congo, Chad, Ethiopia, Lesotho, Malawi, Rwanda, Swaziland, Uganda, Zambia, and Zimbabwe.
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