The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) Ethiopia Digital Foundations Project (P171034) AFRICA EAST | Ethiopia | Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2021 | Seq No: 1 | ARCHIVED on 21-Jul-2021 | ISR47561 | Implementing Agencies: Federal Democratic Republic of Ethiopia, Ethiopian Communications Authority, Ministry of Innovation and Technology (MInT), EthERNet -- Ethiopian Research and Education Network, Ministry of Finance and Economic Development, Ministry of Peace Key Dates Key Project Dates Bank Approval Date: 21-Apr-2021 Effectiveness Date: -- Planned Mid Term Review Date: 12-Jul-2024 Actual Mid-Term Review Date: Original Closing Date: 31-Oct-2026 Revised Closing Date: 31-Oct-2026 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to increase the inclusiveness and affordability of digital services and digital job creation in Ethiopia. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name 1. Digital economy, enabling legal and regulatory environment:(Cost $20.00 M) 2. Digital government and connectivity:(Cost $133.00 M) 3. Digital business and entrepreneurship:(Cost $40.00 M) 4. Project management:(Cost $7.00 M) 5. Contingent Emergency Response Component Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- High Implementation Status and Key Decisions The project was approved by the WB Board on April 21, and the financing agreement with the Government was signed on May 7, 2021. A first implementation support mission was undertaken from May 5-18, 2021. The main focus of the implementation support to date has been on achieving the effectiveness and disbursement conditions, and good progress has been made on this. In addition, there have been favorable developments in the general market environment with the licensing of a new market entrant and the launch of the call for expressions of interest phase of the partial privatization of Ethio Telecom. Licensing on new market entrants. One of the main objectives for the Digital Ethiopia project is to increase the level of inclusion and affordability of digital services in Ethiopia, and one of the main mechanisms for achieving this is through the processes of market liberalisation, private sector processes and effective regulation. The World Bank has been supporting the GoE in this process since mid 2018, mainly through trust funds, 7/21/2021 Page 1 of 9 The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) through a project preparation advance for the Digital Ethiopia project, and through the work of the IFC. A major milestone therefore was the formal issue of a license to a second full-service license, issued on June 8 2021, to the Global Partnership for Ethiopia (GPE), which is a consortium med by Safaricom (Kenya) and including also Vodafone (UK), Vodacom (South Africa), Sumitomo Corp (Japan) and Commonwealth Development Corporation (CDC). Partial Privatization of Ethio Telecom. This activity is funded through the Digital Ethiopia project, initially using funds from the project preparation advance (PPA). A transaction advisor (Deloitte) was selected in September 2020 through a competitive tendering process. A call for expressions of interest (EOI) was published on the Ministry of Finance website on June 15, 2021, giving potential partners 30 days in which to respond. Effectiveness Conditions. The project financing agreement, signed with the Government on May 7 2021, sets two effectiveness conditions which should be met by the deadline of August 5, 2021. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High -- High Macroeconomic Substantial -- Substantial Sector Strategies and Policies High -- Substantial Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Substantial -- Substantial Sustainability Fiduciary Substantial -- Substantial Environment and Social Moderate -- Moderate Stakeholders Moderate -- Moderate Other Substantial -- High Overall High -- High Results PDO Indicators by Objectives / Outcomes to increase inclusiveness and affordability of digital services in Ethiopia IN01017722 ►Penetration rate of internet users (fixed and/or mobile) per 100 inhabitants, disaggregated by gender (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 18.62 -- 18.62 30.00 Date 31-Dec-2018 -- 31-Dec-2018 31-Dec-2026 7/21/2021 Page 2 of 9 The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) This indicators, which is based on household survey data. measures the number of people who have used Comments: the internet at least one within the last month (internet users), as a percentage of the population aged 15+. IN01017723 Penetration rate of internet users (fixed and/or mobile) per 100 inhabitants, who are female (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 13.03 -- 13.03 25.00 Date 31-Dec-2018 -- 31-Dec-2018 31-Dec-2026 IN01017724 ►Broadband internet prices per month, mobile, in US$ (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 -- 1.71 2.00 Date 30-Nov-2018 -- 26-Feb-2021 30-Jun-2027 Comments: The price of 1 GB per month of mobile data, expressed in US$ IN01017725 Price of 1 GB of mobile data per month, as a percentage of Ethiopia's GNI per capita (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 19.50 -- 2.41 2.00 to improve digital job creation in Ethiopia IN01017766 ►Increase in the number of jobs created, facilitated or sustained by digital businesses under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 6,500.00 Date 31-Dec-2019 -- 30-Jun-2021 30-Jun-2027 Digital economy direct jobs are the salaried staffs hired by a digital firm. Digital economy indirect jobs are Comments: the jobs facilitated and sustained by digital businesses, e.g. working as a supplier or individual contractor for digital businesses and earn a commission from them. IN01017767 Number of digital economy jobs created for females (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1,000.00 IN01017768 Number of digital economy jobs created for disabled persons (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 65.00 IN01017769 Number of digital economy jobs created for rural persons (Number, Custom Supplement) 7/21/2021 Page 3 of 9 The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1,300.00 Intermediate Results Indicators by Components 1. Digital Economy, enabling legal and regulatory environment IN01017770 ►Climate Indicator: Increase in the number of citizens able to receive alerts via their phone (eg for extreme weather events) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1,675,229.00 10,000,000.00 Date 31-Dec-2019 -- 31-Dec-2020 31-Dec-2026 This indicator is based on the increase in the number of cellular mobile subscribers in the country. The Comments: service of extreme weather alerts (climate indicator) is typically delivered by short message service (SMS), and is therefore available on all phones in use -- 2G, 3G or 4G. IN01017774 ►Number of telecom service licenses awarded by ECA, including class licenses (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1.00 3.00 Date 01-Nov-2019 -- 08-Jun-2021 30-Jun-2027 Number of awards of telecom operator licenses in Ethiopia by ECA, including class licenses. Thus, this Comments: would include both full service licenses as well as class licenses awarded to internet service providers, satellite operators, wholesale fiber operators etc. IN01017780 ►Percentage of the population covered by at least a 4G network signal (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.40 -- 4.84 60.00 Date 31-Dec-2020 -- 31-Mar-2021 30-Jun-2027 Comments: Percentage of the population covered by a mobile broadband signal that is 4G or higher (ie 4G and 5G) IN01017783 ►Level of market competition, as measured by change in the level of concentration in the provision of broadband telecom services, using the Herfindahl-Hirschman Index (HHI). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10,000.00 -- 10,000.00 5,000.00 Date 31-Dec-2020 -- 30-Jun-2021 30-Jun-2027 The Herfindahl-Hirschman Index (HHI) is a commonly accepted measure of market concentration. It is calculated by squaring the market share of each firm competing in a market and then summing the Comments: resulting numbers. It can range from close to zero to 10,000, where zero equals perfect competition and 10'000 is complete monopoly. 7/21/2021 Page 4 of 9 The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) 2. Digital Government and Connectivity IN01017771 ►Number of Government services accessible from the ePortal (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1.00 4.00 Date 31-Dec-2019 -- 30-Jun-2021 31-Dec-2026 This indicator measures the number of eGovernment services that are accessible from an official eGovernment portal (for instance using the domain name .gov.et). There is no specification of the type of Comments: Government service but it might, for instance, include birth, marriage or death certificates, ID cards or passports, applying for visas, filing taxes, IN01017775 ►Number of Ministries, Departments and Agencies served with enhanced connection to broadband internet, under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 200.00 Date 01-Nov-2019 -- 30-Jun-2021 30-Jun-2027 Number of ministries, departments and agencies connected to broadband internet. The count measure locations (ie, if the same ministry has more than one site, it is counted multiple times). The definition of Comments: broadband internet here would include digital subscriber line, ethernet or fiber. It would also include a 3G, 4G or 5G mobile signal if fixed line connection were available. IN01017778 ►Number of universities and TVETs connected to broadband internet (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 -- 30.00 200.00 Date 01-Nov-2019 -- 30-Jun-2021 30-Jun-2027 This indicator measures the number of higher education institutes provided with broadband internet. The definition of a higher education institution includes TVETs and Research Institutes as well as Universities, and it covers the number of locations (ie if a university has two separate campuses in different locations, it Comments: would be counted twice). The definition of connection would be a fixed line broadband connection (eg DSL, Ethernet, fiber) and would also be extended to cover 4G or above mobile signal, if this was avaialble at an unmetered tariff. The indicator would be a measure of support provided "under the project", so would be mainly limited to the increase under the program administered by EthERNet. IN01017785 Number of students receiving access to enhanced internet services, under the project, of which percentage female (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50,000.00 IN01017786 Percentage of students receiving access to enhanced internet services, under the project who are female (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 7/21/2021 Page 5 of 9 The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) Value 0.00 -- 0.00 30.00 IN01017781 ►Number of senior government officials receiving training in digital economy policies, of which percentage female. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 2,000.00 Date 01-Nov-2019 -- 30-Jun-2021 30-Jun-2027 Comments: Number of senior government officials receiving training in digital skills, under the project IN01017787 Percentage of senior government officials receiving training under the project who are female (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 40.00 IN01017788 Citizen engagement indicator: Percentage of beneficiaries receiving training under the project who expressed satisfaction (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 60.00 3. Digital Business and Entrepreneurship IN01017772 ►Number of owners of offline SMEs and farmers receiving benefits (eg digital platform training, access to digital devices) under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 6,250.00 Date 01-Nov-2019 -- 30-Jun-2021 30-Jun-2027 This indicator measures the number of users of digital platform and digital devices that receive benefits for Comments: productive purposes and generate income. IN01017777 of which female persons as the beneficiaries (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 950.00 IN01017779 ►Number of digital start-ups created and received funding that use a tech solution for commercial purposes (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60.00 -- 0.00 450.00 Date 31-Dec-2019 -- 30-Jun-2021 31-Dec-2026 7/21/2021 Page 6 of 9 The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) Number of digital startups with HQ in Ethiopia receiving private funding from Angel, Early Stage VC, Comments: Product Crowdfunding or, Seed round. This indicator is also consistent with DE4A scorecard targets. Baseline figures estimated from the Deloitte Digital Economy assessment commissioned by the project. IN01017782 of which there is at least one female in the founding team (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 -- 0.00 70.00 IN01017784 ►Number of digital platform and data firms operating in the country, including MSMEs, to contribute to digital economy growth (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 32.00 -- 32.00 170.00 Date 31-Dec-2019 -- 31-Dec-2020 31-Dec-2026 This indicator includes all sizes, stages and ownership types (both foreign and local) of platform-based and data-driven firms not just start-ups. Platform and data-driven business models are essential to spur Comments: digital innovation and digital economy growth. This indicator is also consistent with DE4A scorecard targets. 4. Project Management IN01017773 ►Percentage of grievances registered that receive an adequate response within 30 days (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 80.00 Date 31-Oct-2020 -- 30-Jun-2021 30-Jun-2027 This indicator is based on the number of grievances or complaints received by the project implementation Comments: unit and expresses the percentage of those that are addressed, with a response to the complainant, within 30 days IN01017776 ►User satisfaction with the effectiveness of the selected public digital services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 70.00 Date 31-Dec-2020 -- 30-Jun-2021 31-Dec-2026 This indicator will be measured using the citizen feedback mechanism for selected digital public services Comments: to be developed under Component 2.1, and will focus on the level of satisfaction with convenience and ease of access Overall Comments IR Indicators can be expected to start showing progress after the first year or so of full project implementation. Performance-Based Conditions 7/21/2021 Page 7 of 9 The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P171034 IDA-68560 USD 200.00 200.00 0.00 0.00 200.66 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P171034 IDA-68560 21-Apr-2021 07-May-2021 -- 31-Oct-2026 31-Oct-2026 Effective Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC 7/21/2021 Page 8 of 9 The World Bank Implementation Status & Results Report Ethiopia Digital Foundations Project (P171034) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 7/21/2021 Page 9 of 9