(Ecofin Agency) - Over 85% of the Malagasy population does not have access to the Internet, according to official figures. The government and private sector actors are increasing investments to bridge this gap in a context marked by the acceleration of digital transformation. 

The World Bank has agreed to finance a USD 400 million project to connect an additional 3.4 million people to the Internet in Madagascar. The initiative, called "Digital and Energy Connectivity for Inclusion in Madagascar (DECIM)," also aims to improve access to energy in the island country.

According to the World Bank, the DECIM project will focus on deploying infrastructure and mobilizing private capital to improve and expand access to energy and digital services in underserved areas. The project is expected to benefit some 2,000 health centers and schools.

It will strengthen access to telecom and Internet services, which remains low despite the accelerating digital transformation in Africa. According to data from the Regulatory Authority of Communication Technologies (ARTEC), Internet and cell phone penetration rates were 12.59% and 46.38% respectively in 2020.

To bridge this digital divide, Malagasy telecom operators are stepping up investments to strengthen their infrastructure and meet growing demand. Earlier this year, Orange signed separate agreements with NuRAN Wireless and Africa Mobile Networks (AMN) to deploy a total of 1,000 towers in rural Madagascar. Its rival Telma has connected the country to two undersea fiber optic cables in the past two years.

"Access to energy and telecommunications are top priorities for our government. This project is fully aligned with our vision for the development of Madagascar. It will allow a significant increase in our access to energy and digital services," said Andry Rajoelina, President of Madagascar.

Isaac K. Kassouwi