How 40 Million People in Djibouti and Ethiopia Will Benefit From From Expansion of Digital Economy

40 million people in Djibouti and Ethiopia including borderland areas will benefit from enhanced connectivity following a World Bank-backed initiative to promote the expansion of an integrated single digital market across Eastern Africa.

The project dubbed, The Eastern Africa Regional Digital Integration Project, seeks to promote the expansion of an integrated digital market across Eastern Africa by increasing cross-border broadband connectivity, data flows, and digital trade in the region.

In a press statement to newsrooms on Wednesday, December 6, Djibouti’s Minister for the Economy and Finance Ilyas Moussa Dawaleh noted that the project was not only a significant milestone for regional integration but also a powerful catalyst for national inclusion.

"By fostering a single digital market in the Horn of Africa, this initiative extends its benefits to both Tadjourah and Obock regions in Djibouti, making a substantial contribution to the country’s digital inclusion strategy,” Dawaleh stated.

The Series of Projects, II (EARDIP-SOP-2), will utilize $130 million in International Development Association (IDA) financing to increase cross-border broadband connectivity.

It will also advance digital market integration in the Eastern Africa region by increasing affordable access to regional broadband connectivity, strengthening the enabling environment and policy convergence for cross-border digital trade and data flows, and developing digital skills. This project is the second in a series of projects.

The first operation in the series, covering Somalia, South Sudan, the Eastern African Community (EAC), and the Intergovernmental Authority on Development (IGAD), was approved by the World Bank Board of Executive Directors on May 18, 2023.  

Kenya will also benefit from regional funding under the Kenya Digital Economy Acceleration Program (KDEAP) to contribute towards the same objectives.