Burundi Telecom / Digital Sector Assessment


  • SOLICITATION NUMBER: 0002009845
  • INSTITUTION:  IFC
  • ASSIGNMENT LOCATION: Burundi
  • ISSUE DATE AND TIME: Jun 19,2024 08:11
  • CLOSING DATE AND TIME: Jul 08,2024 23:59

The International Finance Corporation (IFC) – a member of the World Bank Group (WBG) – is the largest global development institution focused exclusively on the private sector. Burundi has significant infrastructure deficits; particularly in access to information and communications technology (ICT). Poor coverage and low-quality infrastructure increase costs; and lower the return on capital and work; affects competitiveness; enhances risks; discouraging investments. Burundi’s poor and inadequate productivity infrastructure (including ICT) constrains the modernization of domestic firms and inhibits private sector-led growth. Lack of digital connectivity limits the opportunities for using modern technologies and limits the connectivity and competitiveness of domestic firms. Burundi ranks 171 out of 175 countries in the ICT Development Index.Access and usage of internet services in Burundi are below the regional average. Only 18% of the population have access to mobile broadband. The quality of service is poor; and usage is very low at 6% (ITU 2023). Although 2G mobile covers 97% of the population; 3G coverage stalls at 50% (GSMA). Factors such as limited infrastructure; high costs; tax rates; weak regulatory framework; and technological barriers impede FDI. However; sizable investments are needed to improve broadband access. Whilst the GoB is taking steps to modernize the regulatory framework; more is needed to create an environment for investment and provision of affordable services. The telecom regulator reported in 2022 2;139;471 active mobile money accounts in Burundi for a population of 12 million people (UN). According to the 2022 GSMA ranking; Burundi is the 4th least connected by mobile services. There are 3 operators: Onatel; Lumitel and Econet. Burundi Backbone System (BBS) is the backbone operator. Recent efforts include the adoption of the Electronic Communications and Postal Code in October 2023.Public-Private Partnerships (PPPs) have been identified by the Government of Burundi (GoB) as one of the solutions for financing infrastructure. The PPP legal framework was updated in 2019; but implementing texts are yet to be adopted.The GoB has developed an ambitious program to improve the telecoms/digital infrastructure and counts on the private sector’s increased involvement to achieve this objective. The World Bank (WB) is supporting the telecoms / digital sector in the country; including through the “Burundi - Digital Foundations Project”; which aims at increasing broadband internet access; especially to underserved communities; and improving the government’s capacity to deliver public services digitally. The GoB requested IFC's support to help increase private participation in the sector.IFC is seeking the services of a qualified firm to conduct a diagnostic study. The objective is to collaborate with relevant stakeholders in Burundi to identify key constraints and investment opportunities in the Telecom / digital sector. To this end; a diagnostic will be prepared that (i) reviews the current supply/demand market structure to identify critical bottlenecks and opportunities for the development of broadband services; (ii) maps regulatory and institutional framework to identify necessary reforms and harmonization to unlock market opportunities; (iii) assesses skills available and gaps to drive the digital economy in Burundi; and (iv) prepares a plan to unlock private sector investment in improved broadband adoption and digital market development; leveraging private sector participation; which will be the main deliverable.

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