The World Bank Togo Digital Acceleration Project (P179138) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 24-May-2023 | Report No: PIDC34521 May 12, 2023 Page 1 of 12 The World Bank Togo Digital Acceleration Project (P179138) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Togo P179138 Togo Digital Acceleration Project (P179138) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) WESTERN AND CENTRAL Nov 13, 2023 Jan 17, 2024 Digital Development AFRICA Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Togolese Republic Ministry of Digital Economy and Digital Transformation Proposed Development Objective(s) Expand access to affordable and resilient broadband connectivity, enhance digital skills and strengthen the digital entrepreneurship ecosystem PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 100.00 Total Financing 100.00 of which IBRD/IDA 100.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 100.00 IDA Credit 100.00 Environmental and Social Risk Classification Concept Review Decision Substantial Track II-The review did authorize the preparation to continue May 12, 2023 Page 2 of 12 The World Bank Togo Digital Acceleration Project (P179138) B. Introduction and Context Country Context 1. Located on Africa’s west coast, Togo is a small and low-income country that faces a wide range of development challenges and vulnerabilities. While enjoying steady economic growth over the last decade, fueled by political stability and economic reforms, being one of the world’s leading producers of certain natural resources, and benefitting from a strategic coastal location, Togo remains a low-income country with a gross national income (GNI) per capita at US$960, far below the Sub-Saharan African (SSA) average of US$1,562.1 More than half of its 8.8 million population is concentrated in rural areas, and almost a third subsist below the international poverty line, with extreme poverty estimated at 30.6 percent in 2022.2 Against this background, coupled with insufficient and unevenly distributed human capital, weak service delivery, and structural inequalities, the country is burdened by high levels of underemployment and precarious self- employment, reflecting weak productive jobs growth. A resulting fragile social fabric is further strained by growing security and climate change risks that disproportionately affect poorer areas, particularly the northern and poorest Savanes region. 2. Despite several recent shocks, economic growth in Togo has shown signs of resilience. Prior to an inevitable slump linked to the COVID-19 pandemic, Togo enjoyed robust economic growth over three decades, averaging 5.7 percent between 2011 and 2019, supported by infrastructure spending, structural reforms, and private-sector investments. However, this growth spurt, driven by capital accumulation and accompanied by a domestic debt build-up, has not translated into significant aggregate productivity gains, as structural transformation made limited headways. Following a robust post-COVID-19 rebound in 2021, challenges intensified again in 2022, as Russia’s invasion of Ukraine contributed to a sharp uptick in energy and food prices, slowing external demand and tightening financing conditions. However, growth remained generally robust at 5.8 percent in 2022, supported by expansionary fiscal policy. The efforts of the Government of Togo (GoTG) to address soaring food and energy prices, as well as security threats in the north of the country, led to higher debt and increased fiscal deficit that almost doubled, reaching 8.3 percent of the gross domestic product (GDP) in 2022, up from 4.7 percent in 2021.3 As the global economy regains momentum, growth in Togo is projected to strengthen, from 4.9 percent in 2023 to 5.3 percent in 2024 and 5.5 percent in 2025, although fiscal consolidation measures and tighter financing conditions are likely to continue stifling domestic demand. 3. Cognizant of multiple and compounding challenges, the GoTG has recalibrated its strategic objectives to return to the growth trajectory, including by leveraging digital technologies for accelerated, inclusive, and resilient socio- economic development. In October 2020, the GoTG adopted a new national development strategy, “Togo 2025 Government Roadmap�, which adjusts the 2018-2022 National Development Plan (NDP) but keeps an overarching goal of making Togo a peaceful, modern nation, and an emerging economy by 2030. The Roadmap recognizes digital technologies as a key lever for accelerating inclusive and sustainable growth, driving the competitiveness of priority sectors, and creating high-value-added jobs. Moreover, one of the ten ambitions of the Roadmap is to make Togo a regional digital hub through an array of regulatory measures and investment projects, underpinned by digitalization efforts embedded in over two-thirds of all the other ambitions and priority initiatives. This vision is complemented by a comprehensive sectoral strategy, the Digital Togo 2025 (adopted in 2022), under the leadership of the Ministry of Digital Economy and Digital Transformation (Ministère de l’Economie Numérique et de la Transformation Digitale, MENTD). The sectorial strategy – the implementation of which is vested in a recently created Digital Togo Agency ( Agence Togo Digital, ATD) – sets 1 GNI per capita based on Atlas method calculation (in current US$) for 2021, as reported by the latest World Development Indicators (WDI) report. https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=TG. 2 A new international poverty line is US$2.15 per capita per day, 2017 PPP. World Bank, 2023. Macro Poverty Outlook for Togo. Spring meetings 2023 edition. https://thedocs.worldbank.org/en/doc/bae48ff2fefc5a869546775b3f010735-0500062021/related/mpo-tgo.pdf 3 Ibid. May 12, 2023 Page 3 of 12 The World Bank Togo Digital Acceleration Project (P179138) ambitious objectives, namely to: (i) include all citizens in the society and economy through biometric identification and access to high-speed internet and equipment; (ii) digitize public and social services to bring the public administration closer to users; and (iii) accelerate the digital transformation of the economy and become a digital hub with an ecosystem of innovation and startups. These priorities are in line with the strategic orientations of achieving universal access to broadband to “improve digital services access, quality, and affordability�, embedded in the 2022 “Dakar Call to Action� – a joint declaration of the heads of state of 23 African countries, charting a path toward the optimal use of World Bank Group (WBG) financing for sustainable development of the continent.4 4. Enhancing Togo’s resilience to climate change will be critical given the country’s high vulnerability to disaster risks. Togo ranks 129th in vulnerability and 127th in readiness out of 181 countries in the 2020 Notre Dame Global Adaptation Initiative (ND-GAIN) index, indicating both its high exposure to climate change and its low readiness to face it. The main climate risks include floods (particularly in coastal areas with a high concentration of industrial sites), droughts, water scarcity, heat waves, and wildfires (particularly in the northern Savanes and Kara regions).5 Climate-related disasters, especially floods, could damage and increase pressures on infrastructure, including broadband connectivity and data infrastructure. Investments in climate-smart digital infrastructure and the transition toward economy-wide digitalization could be one of the key drivers of improved climate resilience and adaptation. This includes reduced vulnerability and a greater ability to respond to shocks through enhanced and uninterrupted digital access to basic services and public assistance in case of emergencies. Digital communications and processes can help lower greenhouse gas (GHG) emissions, including reducing the need to travel to provide or access services, work, and engage in commercial and social transactions. In this context, climate adaptation and mitigation considerations incorporated in the project activities will aim to support the delivery of the country’s fourth Nationally Determined Contribution (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC).6 Sectoral and Institutional Context 5. The GoTG has undertaken substantial efforts to create a favorable legal, regulatory, and institutional environment for the digital economy, including in critical domains of telecom market development and data protection; however, gaps remain. The main telecom regulatory body is the Regulatory Authority for Electronic Communications and Posts (Autorité de Régulation des Communications Electroniques et des Postes, ARCEP), responsible for market regulation, supervision, and spectrum management under the 2012 Law on Electronic Communications that despite being comprehensive, requires continuous updates. Foundational legal texts pertaining to the digital economy include the 2017 Law on Electronic Transactions and the 2017 Guidance on Information Society. Moreover, as part of its efforts to strengthen the trust environment for digital transactions, the GoTG adopted the 2019 Law on Personal Data Protection, which establishes a legal basis for the collection and processing of personal data, and the 2020 Law on Biometric Identification (amended in 2022) – both elaborated with the World Bank support7 – that improves and clarifies the processing of certain personal data.8 The Personal Data Protection Law has established the Authority for the Protection of Personal Data (Instance de Protection des Données à Caractère Personnel, IPDCP), which is yet to become operational. 6. Despite advancements to increase the country’s cyber resilience, Togo still faces significant challenges in cybersecurity. Following the promulgation of the 2018 Law on Cybersecurity and Cyber-criminality in 2019 (and updated in 2022), the GoTG established the National Cybersecurity Agency (Agence Nationale de la Cybersécurité, ANCy), which is 4 World Bank, 2022. Dakar Call to Action. https://www.worldbank.org/en/news/statement/2022/07/07/dakar-call-to-action-joint-declaration-of-the-heads-of-state- and-government-to-mobilize-african-countries-towards-suppor. 5 ThinkHazard!, 2022. https://thinkhazard.org/en/report/243-togo 6 Republic of Togo, 2021. Nationally Determined Contributions to the UNFCCC (Revised). https://unfccc.int/sites/default/files/NDC/2022- 06/CDN%20Revisées_Togo_Document%20intérimaire_rv_11%2010%2021.pdf 7 Togo Social Sector IMSA (P166670); and West Africa Unique Identification for Regional Integration and Inclusion (WURI) Program - Phase 2 - (P169594). 8 The National Identification Agency (Agence Nationale d'Identification, ANID) is authorized to collect and process both biometric and biographic data for identification purposes, and, with the 2022 amendments, socioeconomic data to implement the nation’s forthcoming social registry. May 12, 2023 Page 4 of 12 The World Bank Togo Digital Acceleration Project (P179138) currently finalizing the national cybersecurity strategy. Moreover, through a public-private partnership (PPP), ANCy set up a national Cybersecurity Emergency Response Team (CERT), Cyber Defense Africa, which functions as the operational and governmental arm in charge of detection, response, and remediation of cyberattacks.9 This critical progress is well reflected in Togo’s position in the 2021 International Telecommunications Union (ITU)’s Global Cybersecurity Index (GCI),10 which ranks the country 105th out of 182 countries for its commitment to and capacity in cybersecurity, with a score of 33.2 out of 100 (above the West African average of 22.9). While Togo’s performance in GCI is particularly high in legal measures, it remains low in cybersecurity standards and stakeholder capacity development (including raising broad cybersecurity awareness and preparing skilled specialists to mainstream cybersecurity risk management across public and private sectors). To address remaining gaps, the GoTG convened the 2022 Lomé Cybersecurity Summit11 and undertaken steps to create an African Center for Coordination and Research on Cybersecurity (ACCRC) with support from the United Nations Economic Commission for Africa. Digital Infrastructure and Equitable Access and Productive Use of Broadband 7. Boosted by increased competition, fixed broadband penetration in Togo has been expanding yet, still trails behind regional peers. Recent developments in the broadband market favorable for improved competition dynamics include the privatization of the incumbent operator Togo Telecom in 2019, the establishment in 2021 of an Internet Exchange Point (IXP) and a colocation data center (Lomé Carrier Hotel) financed by the Togo portion of the West African Regional Communications Infrastructure Program (WARCIP, P123093) and subsequently privatized12, and the entry in 2022 of a new operator CSquared Woezon13. The latter acts as an open-access wholesale operator in charge of maintaining and operating the existing terrestrial fiber optic networks as well as the Equiano submarine cable, which has recently landed in Lomé. In addition to CSquared, four other key players are active in the fixed broadband market: Togo Telecom (Togocom brand), Group Vivendi Africa (GVA), Café Informatique, and Teolis. Despite these positive dynamics, the household broadband penetration, albeit having risen from 2.6 percent in 2019 to 4.4 percent in 2022, is still less than half of the regional average (9.6 percent).14 Of those 90,725 fixed broadband household connections, 78,600 are fiber connectivity, implying a household penetration rate of fiber-to-the-home technology (FTTH or fiber between a household and a backbone, sometimes referred to as a “middle mile�) of 3.8 percent. To boost the national high-speed fixed broadband coverage, the GoTG adopted Decree 2020-116/PR and Arrêté 2021-002, mandating non-telecom utilities to systematically deploy fiber optic infrastructure during significant civil works (including in energy, water, and transport sectors) and subsequently transfer them to the state-owned digital infrastructure company (Société des Infrastructures Numériques, SIN), which has been mandated to hold and commercialize all strategic telecom and digital assets (e.g., data centers, IXPs, and fiber optic networks). 8. Mobile broadband penetration has significantly increased but still requires further improvement. According to the Global System for Mobile Communications (GSMA), the number of unique mobile broadband subscribers per 100 inhabitants in Togo, which stood at 35.7 percent in 2022, lags key regional comparators (41.4 percent in Côte d’Ivoire and 49.3 percent in Ghana). Mobile broadband internet remains relatively expensive, with 1 gigabyte (GB) of mobile data 9 World Bank; United Nations. 2023. Combatting Cybercrime: Tools and Capacity Building for Emerging Economies (ed. 2). Washington, DC: World Bank Group. http://www.combattingcybercrime.org/. 10 ITU’s GCI is a composite index measuring countries’ performance in five key areas: technical capacity, legal frameworks, co-operation, capacity development and organizational measures. 11 The summit gathered high-level government representatives and other stakeholders across Western and Central Africa and led to the adoption of the Lomé Declaration on Cybersecurity and the Fight Against Cybercrime. 12 Lomé Carrier Hotel was privatized in January 2023 and is now owned and operated by a private company Horizon Data Centre Togo Company Ltd. 13 CSquared holding is a private company, whose current shareholders include International Finance Corporation (IFC), Google, Convergence Partners (IFC investee private equity firm) and Mitsui. CSquared’s Togo branch (CSquared Woezon) is structured as a joint-venture (JV) with a minority public shareholding, 56-percent owned by CSquared and 44-percent owned by the GoTG through a public telecom asset company – SIN (Société Infrastructures Numériques). 14 As reported by TeleGeography in December 2022. May 12, 2023 Page 5 of 12 The World Bank Togo Digital Acceleration Project (P179138) estimated to account for 5.74 percent of the monthly GNI per capita,15 which does not meet the “1 for 2� target for affordable internet (i.e., the price of 1 GB of mobile data being less than 2 percent of the average monthly income) set by the United Nations Broadband Commission. At the same time, the quality of mobile broadband is relatively poor, as Togo’s average mobile broadband download speed of 4.15 megabits per second (Mbps) was behind the West African average (5.82 Mbps) and key comparators (10.14 Mbps in Côte d’Ivoire and 11.24 Mbps in Ghana) in 2022.16 Soon to be commercialized international connectivity of the Equiano cable is expected to have a significant impact on improving affordability and quality of internet in the country. 9. Internet use and ownership of digital devices are significantly lower amongst women compared to men, particularly for those residing in rural areas. Internet use in Togo is highly associated with socio-economic status, reflected in a significant gender gap and an urban-rural divide. According to the latest statistics, less than a third of women compared to almost half of men (27 percent versus 49.3 percent, respectively) reported using internet in the past three months in urban areas, while those living in rural areas reported hardly any use at all (2.4 percent for women compared to 9 percent for men).17 As for the ownership of devices, less than 57 percent of women (versus the SSA average of 75 percent) own a mobile phone primarily due to common barriers of affordability, digital skills, and safety and security concerns.18 Overcoming such barriers is challenging, given that only 55.1 percent of women aged 15 and above are considered literate in Togo,19 and female labor market participation has been stagnating at 55 percent, limiting their financial autonomy and acquisition of digital skills.20 Digital Public Infrastructure (DPI) 10. Over the last decade, Togo has significantly expanded the use of digital public platforms and services. In its Digital Togo 2025 Strategy, the GoTG set an objective to accelerate the delivery of digital public services to citizens and businesses through a one-stop-shop portal (service-public.gouv.tg) launched in 2017 and revamped in 2022, aiming to digitalize 75 percent of administrative procedures with 100 percent user satisfaction by 2025.21 Moreover, the GoTG has instituted an innovative machine learning and mobile money-based shock-responsive social assistance delivery platform (Novissi22) that was used to swiftly respond to COVID-19 by providing emergency cash transfers to the most affected households without requiring person-to-person contact. Importantly, with support from the WB-financed West Africa Unique Identification for Regional Integration and Inclusion (WURI) Project, the GoTG has been developing a foundational unique identification platform (“e-ID Togo�) to provide all persons in the country, regardless of their legal status, with basic unique identity numbers and credentials based on minimal biographic and biometric data. With the support of the WB-financing,23 the platform is now being revamped, expanded, and scaled up to become the Novissi+ Flagship Safety 15 As estimated based on 2021 data from cable.co.uk, which reported an average price for 1GB at US$4.7. International Telecommunications Union (ITU) reports slightly different numbers with the minimum price of 2GB estimated at US$8.9 in 2021. ARCEP, which tracks data-only plans, positions Togo as having the rates up to 25 times more expensive than the best rate in the West African Economic and Monetary Union (WAEMU), with the cheapest plan that includes 2GB of data reported in 2021 at 2500-3000 FCFA, or around US$ 4-5. 16 As reported by cable.co.uk in September 2022. 17 National Institute of Statistics, Economic, and Demographic Studies & the United Nations International Children’s Emergency F und (UNICEF), 2018. Multiple Indicator Cluster Surveys (MICS) 6th round, Final Report, Lomé, Togo. 18 GSMA, 2022. The Mobile Gender Gap Report 2022. https://www.gsma.com/r/wp-content/uploads/2022/06/The-Mobile-Gender-Gap-Report- 2022.pdf?utm_source=website&utm_medium=download-button&utm_campaign=gender-gap-2022 19 World Bank, 2022. Gender Data Portal, Togo. Adult Literacy rate, by sex (% of people ages 15 and above), female. https://genderdata.worldbank.org/countries/togo 20 World Bank, 2022. World Development Indicators: Labor Force participation rate, female, Togo. https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS?locations=TG 21 MENTD, 2022. “Le Gouvernement lance le nouveau portail national des services publics digitalisés de l’administration « service-public-gouv.tg ». https://numerique.gouv.tg/le-gouvernement-lance-le-nouveau-portail-national-des-services-publics-digitalises-de-ladministration-service-public-gouv-tg/ 22 Novissi means solidarity in the Ewe language. See www.novissi.tg.gouv; https://www.worldbank.org/en/news/feature/2021/07/07/prioritizing-the-poorest-and- most-vulnerable-in-west-africa 23 Social Assistance Transformation for Resilience Program for Results (P178835). May 12, 2023 Page 6 of 12 The World Bank Togo Digital Acceleration Project (P179138) Nets Program. Moreover, ATD has been working on the interoperability24 framework and data exchange platform, prioritizing data exchange for social assistance programs. As a next step, it would be essential to develop an overarching interoperability framework accompanied by standards and protocols for the overall public administration and advance the development of digital payments (for example, by developing and scaling a multi-program/multi-provider payment platform) as foundational prerequisites for digital public services to be fully/end-to-end transactional and effectively used. Digital Skills and Innovation 11. The GoTG has been working on creating an enabling environment for startups and entrepreneurs, including in the digital sector, to drive quality job creation, economic diversification, and demand-based innovations. The GoTG is in the final stages of adopting a Law on the Development of Innovation Ecosystem in Togo, which will establish legal grounds for identifying and labeling innovative startups based on a range of criteria, including the creation of high added value products and services and growth potential, to provide them with fiscal, financial, and administrative incentives. Effective operationalization of this Law will require the adoption of accompanying decrees and well-designed implementation mechanisms. Importantly, the country will need to expand a pipeline of high-potential viable startups and businesses, which — against the background of endemic informality — is currently considered relatively modest, especially compared to its regional peers (i.e., Ghana, Rwanda, and Senegal). In Togo, most digital startups and businesses are clustered in fintech and e-commerce,25 the development of which is stifled by low penetration of fixed and mobile broadband coverage, limited online payment platforms, logistic barriers, and complexity of deliveries outside of Lomé. Moreover, the incubation and support system for small businesses/startups is still nascent, with limited financial and human resources. 12. To effectively drive innovation, Togo is facing a shortage of professionals with specialized digital skills, accentuated by a clear gender divide. Over the last few years, the level of education of the working-age population has significantly improved, mainly through an increase in primary school enrollment. However, the quality of primary and secondary education remains weak with persistent low learning outcomes and gender disparity, resulting in low enrollment in tertiary education (only 51.3 percent of girls and 63 percent of boys complete secondary school in Togo), particularly in science, technology, engineering, and mathematics (STEM) fields. According to official statistics, a mere 1.71 percent of students in Togo are enrolled in Information Technology and Communications (ICT) related courses. Among the latter, a little less than 2 out of 10 students (17.3 percent) are female.26 When considering a wider range of scientific and technological courses, the share of students increases to 23.63 percent, of which just over 2 out of 12 students (or 15.6 percent) are female. The GoTG has undertaken some initiatives to address these challenges; however, they remain ad hoc and small in scale. Despite the initiatives, learning poverty remains high, with the youth being most affected, joining the labor market without the required skills and unable to find a job. Moreover, there is no strategy or framework to support effective training programs outside the formal education system, which is an untapped opportunity to train and reskill both youth and adults, including vulnerable populations, such as persons with disabilities (PWD). Relationship to CPF 13. The project is fully aligned with the WBG Togo Country Partnership Framework (CPF) FY23-27 (under elaboration), which identifies digital as a critical cross-cutting enabler for the achievement of its high-level objectives 24 Interoperability refers to the ability of different functional units—e.g., systems, databases, devices, or applications—to communicate, execute programs, or transfer data in a manner than requires the user to have little or no knowledge of those functional units (ISO/IEC 2382). https://id4d.worldbank.org/guide/interoperability#:~:text=Specifically%2C%20interoperability%20is%20the%20ability,(ISO%2FIEC%202382). 25 Ministère du Commerce, de l’Industrie et de la Consommation Locale, 2021. Etude pour le Développement du Commerce Electronique du Togo et la Stratégie nationale 2022-2026. In 2021, the Ministry of Commerce (Ministère du Commerce, de l’Industrie et de la Consommation Locale, MCICL) reported around 50 digital start-ups and businesses, of which the vast majority (19 start-ups) operating in e-commerce. 26 Ministry of Higher Education and Research. 2018-2019 Statistical Yearbook of Higher Education. ICT-related courses include the fields of study which cover (i) computer use; (ii) design and administration of databases and networks; (iii) development and analysis of software and digital applications. May 12, 2023 Page 7 of 12 The World Bank Togo Digital Acceleration Project (P179138) (HLOs). The project (under Component 2) will underpin CPF HLO1 (increased quality employment in the private sector), particularly Objective 1 (improving business environment, productivity, and competitiveness), by supporting interventions aimed at boosting innovation and spurring entrepreneurship (through facilitated access to finance, relevant training, and markets) that will drive the scalability and productivity of innovative firms and ultimately contribute to the competitiveness of the entire private sector. Importantly, under both Components 1 and 2, private sector finance and expertise will be mobilized through appropriate PPP models and knowledge exchange. Component 2 will also contribute to CPF HLO2 (improved human capital), specifically Objective 3 (improving the quality and effectiveness of the education and health systems) by helping people, particularly the youth, women, and PWD, develop cross-cutting digital skills in line with labor market needs for better employability and improved earnings. Finally, the project (under Component 1) will support CPF HLO3 (increased sustainability of natural capital and access to resilient infrastructure), namely Objective 6 (increase access to green and resilient infrastructure), by expanding high-speed last-mile affordable and climate-resilient broadband connectivity in selected regions, while leveraging private capital. C. Proposed Development Objective(s) 14. The project development objectives (PDO) are to expand access to affordable and climate-resilient broadband connectivity, enhance digital skills and strengthen the digital enterpreneurship ecosystem. Key Results (From PCN) The achievement of the PDO could be measured by the following result indicators: Expand access to affordable and climate-resilient broadband connectivity • People provided with new or enhanced access27 to broadband internet (number), of which percentage women; • Newly built or upgraded infrastructure that is resilient to climate-related shocks (percentage);28 • Average monthly price of a 1-GB internet subscription. Enhance digital skills and strengthen the digital enterpreneurship ecosystem • People completing digital skills training29 (number), of which percentage female; • Startups incubated annually at the Techno Hub (number), of which percentage women led. D. Concept Description 15. The proposed Togo Digital Acceleration Project is articulated around three main components focused on digital infrastructure (supply), digital skills and innovation (demand), and enabling policy environment (cross-cutting foundation), in addition to a project management component. These components seek to (i) expand resilient and affordable broadband infrastructure with a focus on broadband access networks in selected regions in Togo; (ii) boost digital skills and innovation to drive digital adoption, create jobs, and maximize digital dividends among the population; (iii) enhance the enabling legal, regulatory, and institutional environment for a safe, and inclusive digital economy; and (iv) support project management. 27 The data include both people who have gained new access to Internet and people who have benefitted from improved Internet service (e.g., affordability, quality) during project implementation. Internet use can be through fixed or mobile networks, and can be at any location of access (e.g., home, work, school, public places). 28 The newly built and upgraded infrastructure will be subject to quality standards that include compliance with the requirements for disaster response and for climate change mitigation (to be elaborated in bidding documents). These requirements will include, for example, the usage of weather-resistant materials, waterproof coverings, and underground infrastructure with climate-resilient design to withstand floods. 29 “Completing� implies obtaining an internationally recognized certificate under the project. May 12, 2023 Page 8 of 12 The World Bank Togo Digital Acceleration Project (P179138) Component 1: Expanding Digital Broadband Connectivity and Digital Inclusion 16. This component aims to expand affordable broadband connectivity for households, enterprises, and public sector institutions through an appropriate technology mix. The project will contribute to increasing the coverage of last- mile networks based on a tailored technology mix (that would include wireless and satellite options but will focus on fiber [FTTH]) under the MFD approach, leveraging catalytic public financing to de-risk the market and crowd in private sector investments. Subcomponent 1.1: Strategic Preparatory Studies 17. This subcomponent will support the GoTG in conducting prerequisite studies to accelerate broadband infrastructure roll-out across the country, reaching a large portion of the residential and business areas already connected to the electric grid in a phased approach. Main activities include: (i) a demand-side study focused on evaluating the socio-economic characteristics of the targeted population and estimating the additional demand from priority broadband users, such as small and medium enterprises (SMEs), and public facilities, including in health and education sectors; (iii) a supply-side study focused on a technical design and planning (incorporating climate change mitigation and adaptation measures), strategic governance models, economic and financial model of the infrastructure to be deployed, and procurement strategy; and (iii) an industrial organization study focused on harmonizing the infrastructure deployments supported by the project and retail offers of mobile network operators (MNOs) and Internet Service Providers (ISPs), determining how to achieve and maintain the targeted affordable retail price, assessing how to increase the number of market players to increase competition and innovation in the market, and assess how the project will impact the business model of MNOs and ISPs. Subcomponent 1.2: Expanding Last-Mile Connectivity in Selected Regions 18. Based on the conclusions of strategic studies delivered under Subcomponent 1.1, Subcomponent 1.2 will provide catalytic funding to expand last-mile broadband connectivity in selected areas, where (i) the electric grid is already deployed, serving targeted households, and (ii) the commercial incentive for broadband network expansion is too weak, indicating a market failure. A competitive tender process to award "least-cost" public subsidies to cover capital expenditure (CAPEX) costs will be leveraged to catalyze investment by private partners that would build and operate (based on a PPP model) the last-mile broadband infrastructure according to open access principles, on an objective, transparent, and no-discriminatory commercial basis, connecting households and other priority broadband users (SMEs and public facilities). The deployment of fiber (and associated civil works) will seek to leverage infrastructure sharing with electric utilities (especially electric poles of energy companies), addressing issues arisen with Decree 2020-116. The project will also finance a Technical Assistance (TA) to establish a consortium supporting the GoTG in establishing a PPP model and undertaking transactions with the private sector. Importantly, any digital infrastructure built under the project will be subject to quality standards, including compliance with the requirements for climate and natural disaster response and climate change mitigation.30 Component 2: Boosting Digital Skills and Innovation 19. This component aims to equip people with in-demand digital skills to drive their employability and participation in the digital economy, while supporting innovation and entrepreneurship ecosystem to create scalable businesses and jobs. A mismatch between the quantity and quality of skilled workers supplied by the formal education system and what is required by firms represents one of the key constraints to the private sector-led growth, while a sizeable share of the labor force remains under-employed. Hence, the project interventions aim to address these challenges and assist Togo in 30These standards include: (i) requirements for renewable energy solutions (for example, solar or wind power and battery storage) to power the infrastructure to be built, to the extent possible, and identification of opportunities for co-deployment of green energy solutions/mini grids to power both towers and local communities simultaneously; and (ii) compliance with ‘Green ICT Standards, as per ITU Telecommunication Standardization Sector Study Group, Green ICT Standards and Supplements. https://www.itu.int/net/ITU-T/lists/standards.aspx?Group=5&Domain=28. May 12, 2023 Page 9 of 12 The World Bank Togo Digital Acceleration Project (P179138) leveraging its youthful and dynamic human capital for quality job creation and building a robust pipeline of local innovative startups and businesses. Subcomponent 2.1: Scaling up Techno Park 20. 30. This subcomponent aims to support the GoTG in creating a Western Africa center of excellence for supporting entrepreneurship, including microentrepreneurs, and providing training in skills demanded by the private sector, thus contributing to job creation, economic diversification, and inclusion. Main activities include supporting: (i) the establishment of a hybrid bilingual academy in partnerships with globally recognized content providers, offering certificate-based face-to-face and virtual courses and trainings; (ii) the development of innovation, incubation, and acceleration programs and services with small grants and mentorships to support startups and entrepreneurs (including businesses developing climate-smart and green technologies and solutions); and (iii) renovation and/or construction activities (on a PPP model) and equipment provision to improve and/or expand existing facilities, ensuring their energy efficiency. Subcomponent 2.2: Establishing Knowledge Network 21. This subcomponent will aim to support the establishment of a knowledge network across the country to engage various groups of the population in a collaborative learning and networking. The knowledge network will represent long branches of Lomé-based techno hub to equitably spread the benefits of training, bootcamps, and job support to other regions. Key activities include: (i) a TA to conduct a comprehensive mapping of existing digital skills programs and initiatives (both within and outside of the formal education system), assess digital skills adoption levels, and identify gaps across the country31; (ii) development and deployment of various digital skills programs in partnerships with the private sector, particularly targeting women, PWD, and other marginalized population; and (iii) development and implementation of communications and awareness-raising campaigns, road shows, and other events to inform the general population, SMEs, and microentrepreneurs on the value of ICT tools. Component 3: Strengthening Legal, Regulatory, and Institutional Environment for Digital Economy 22. This component will finance TA activities for MENTD and other key stakeholders, such as ARCEP, IPDCP, and ANCy, to strengthen ‘analog foundations’32 to underpin a safe and inclusive digital economy. The overarching objective of this component will be to support telecom market development, boost digital public services delivery and uptake, and enhance people’s trust in digital transactions by closing key legal, regulatory, and institutional gaps. The component will also include capacity building of relevant GoTG officials to strengthen their ability to design, implement, supervise, and evaluate digital economy strategies, policies, and investment programs. Component 4: Project Management 23. This component will provide support for the management and implementation of project-associated activities. Project financing under this component will cover operating and staff costs of a dedicated project implementation unit (PIU) to be established within MENTD. This component will also cover independent audits and learning/training for the PIU and key implementation partners. Special attention will be devoted to promoting equal participation of women in all decision-making bodies under the project and contributing to tackling barriers to their recruitment, retention, and promotion. Finally, it will finance community engagement and communications, including a grievance redress mechanism, project communication, and community engagement. 31 The assessment will include a review of existing learning materials for potential gender biases and stereotypes. 32 World Bank. 2016. World Development Report: Digital Dividends. May 12, 2023 Page 10 of 12 The World Bank Togo Digital Acceleration Project (P179138) Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . . CONTACT POINT World Bank Aneliya Muller, Xavier Stephane Decoster Digital Development Specialist Borrower/Client/Recipient Togolese Republic Implementing Agencies Ministry of Digital Economy and Digital Transformation Kafui Ekouhoho Director of Digital Togo Agency kafui.ekouhoho@numerique.gouv.tg FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Aneliya Muller, Xavier Stephane Decoster May 12, 2023 Page 11 of 12 The World Bank Togo Digital Acceleration Project (P179138) Approved By APPROVALTBL Practice Manager/Manager: Country Director: Coralie Gevers 04-Jun-2023 May 12, 2023 Page 12 of 12