AfDB Approves $10.5 Million Loan to Bolster Digital Infrastructure in Comoros

AfDB Approves $10.5 Million Loan to Bolster Digital Infrastructure in Comoros

The African Development Bank (AfDB) has approved a €9.51 million ($10.5 million) loan to the Comoros to support the construction and operation of a primary data center, the upgrade of a secondary facility, and the establishment of an incubator for fostering digital innovation and entrepreneurship.The project, with a total estimated cost of €22.53 million ($24.9 million), will receive additional funding from the African Development Fund (€4.02 million or $4.4 million) and the AfDB’s Transition Support Facility (€5.49 million or $6 million). This initiative falls under the broader Project to Support the Digitisation of the Comorian Economy, which aims to enhance governance and improve public services through digital transformation.A private operator will be contracted to oversee operations, marketing, maintenance, and expansion of the data centers, ensuring efficient management and scalability.

Key Project Components

The initiative includes several critical components:

Establishing a digital administration platform.

Developing e-services to enhance public service delivery.

Implementing a digital public payment system.

Creating platforms for data sharing and system interoperability.

Forming a National Authority for the Protection of Personal Data and Access to Information to oversee data privacy and governance.The AfDB emphasized that the project would deliver a wide range of digital services to address the needs of Comorian citizens while enhancing data security and accessibility.

Expected Impact

Once completed, the project is anticipated to provide comprehensive digital services, improve user experience with public services, and create an enabling environment for entrepreneurship in the digital economy.

Regional Context

In January 2024, Internet penetration in the Comoros was recorded at 27.3%, marking a 1.8% year-on-year increase. Meanwhile, the East African data center market is projected to generate $1.09 billion in revenue by 2024, with network infrastructure accounting for nearly half of this value.Across the region, several nations are making strides in digital infrastructure development:

Kenya: IXAfrica and Schneider Electric launched a hyper-scale data center in July 2024, while Microsoft and G42 committed $1 billion to build a state-of-the-art, sustainable data center campus.

Ethiopia: Ethio Telecom is in talks with Chinese enterprises to establish a hyper-scale data center.

By investing in this initiative, Comoros is positioning itself to be part of the rapidly growing digital ecosystem in East Africa.

 

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