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Financing challenges and opportunities Willie Currie, APC Policy Programme Manager, 3 February 2005

Financing challenges and opportunities Willie Currie, APC Policy Programme Manager, 3 February 2005. APC’s principles on financing ICTD.

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Financing challenges and opportunities Willie Currie, APC Policy Programme Manager, 3 February 2005

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  1. Financing challenges and opportunitiesWillie Currie, APC Policy Programme Manager, 3 February 2005

  2. APC’s principles on financing ICTD • The extension of network infrastructure in developing countries is a global public good that benefits everyone because of the value of network externalities. The value of the global information network increases in value as more national networks and individual users are added. Association for Progressive Communications

  3. Current challenge: ICT infrastructure • Telecom boom created expectation private sector would roll out ICT infrastructure • Financing trends directed developing countries to mainstream ICTD in development sectors (e.g. health and education) before sufficient ICT infrastructure was in place • Effective mainstreaming of ICTD cannot take place without affordable access to infrastructure Association for Progressive Communications

  4. Regional space: basic backbone • All countries interconnected by regional backbone network • Financing mechanisms? • Regional level: e.g. ‘NEPAD Broadband Infrastructure for Africa’ initiative (public private partnership) • Inter-regional level: Regional collaboration and harmonised policy and regulation Association for Progressive Communications

  5. National space: zones Association for Progressive Communications

  6. National and regional spaces and grey areas • Grey areas exist between the zones, usually in cities that are in the market zone but need development • Regional spaces exist beyond the state’s boundaries and regional ICT infrastructure development is a regional public good Association for Progressive Communications

  7. National space: activity Association for Progressive Communications

  8. National space: financing Association for Progressive Communications

  9. Digital Solidarity Fund • Africa-led initiative • Multi-stakeholder • Buy-in from several municipalities • Creative initiative in sourcing new forms of ‘solidarity’ finance • Implemention can be fast-tracked by using existing local government structures • Focus on grey zone in municipalities • DSF can catalyse bringing the market closer to the development zone and pull the development zone closer to the market Association for Progressive Communications

  10. Possible applications of Digital Solidarity Fund Association for Progressive Communications

  11. Risks and bottlenecks • Slow roll out of broadband infrastructure • NEPAD broadband initiative not fully or timeously financed • Incumbent operators in the Club Consortium resist opening access to EASSY cable and cost of bandwidth in Africa does not go down • DSF aims too high and does not gain traction at WSIS Association for Progressive Communications

  12. Risks and bottlenecks • Regulatory environment remains incomplete and slow to respond to ICT policy and technological changes • Lack of support for ICTD by African governments in their MDG strategies stifles local initiatives • Inconsistent ODA strategies Association for Progressive Communications

  13. Opportunities • Africa is wired for broadband on an open access basis over next 5 years • DSF succeeds in mobilizing resources and new actors for ICTD in cities and local governments • ICTD zone blossoms through open access networks, IC-enabled services in rural areas and innovative approaches • Private sector investment in market zone continues to climb • Large scale ‘up-take’ by multiple actors: CSOs, communities, SSMEs, schools, etc. Association for Progressive Communications

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