IFC to Invest US$32.5 million in Undersea Fibre Cable in East Africa
The IFC, the financing arm of the World Bank has approved investment of $32.5 million in the undersea fibre-optic link known as East African Submarine Cable System (EASSy).
The International Finance Corporation's (IFC's) board approved the investment which seeks to provide high-quality Internet and international communications links to 250 million people in Africa.
IFC's Executive Vice President, Lars Thunell said in press statement international connectivity prices will drop by two-thirds at outset and the cable will open access to service providers spurring competition. "Consumers along Africa's east coast pay US$200 (Sh13,400) to US$300 (Sh20,100) a month for Internet access. Reducing international communications price by 10 per cent can benefit consumers by more than US$2.5 billion," he said.
He said EASSy will run 10,000 km from Africa's southern tip to its horn, connecting Kenya, Tanzania, Somalia, Sudan, Djibouti, South Africa, Mozambique and Madagascar. The fibre will be operational in 2009.
(Source: The Nation)