The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) Concept Environmental and Social Review Summary Concept Stage ( ESRS Concept Stage) For Official Use Only Date Prepared/Updated: 03/07/2024 | Report No: ESRSC04158 Mar 12, 2024 Page 1 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P502532 Investment Project Financing (IPF) IDEA 2024 Operation Name Inclusive Digitalization in Eastern and Southern Africa (IDEA) Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Eastern and Southern EASTERN AND Digital Development Africa SOUTHERN AFRICA Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Common Market for Common Market for Eastern and 08-Apr-2024 17-Jun-2024 Eastern and Southern Southern Africa (COMESA) Secretariat Africa (COMESA) For Official Use Only Estimated Concept Total Project Cost Review Date 21-Feb-2024 5,000,000.00 Proposed Development Objective The Program-Level Development Objective is to increase access to, and inclusive use of, the internet and digitally- enabled services in Eastern and Southern Africa. The Project Development Objective for the operation implemented by COMESA is to enhance the enabling environment for increasing access to, and inclusive usage of, the internet and digitally-enabled services in Eastern and Southern Africa. B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities [Description imported from the Concept Data Sheet in the Portal providing information about the key aspects and components/sub-components of the project] IDEA is a regional Multiphase Programmatic Approach (MPA) for Eastern and Southern Africa consists of parallel and sequential operations in several phases, including FCV and LDC countries at different stages of development and Mar 12, 2024 Page 2 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) regional entities in Eastern and Southern Africa. The regional MPA has four components: Component 1: Affordable broadband and secure data hosting capabilities. This component will focus on expanding essential, high-quality, resilient and affordable broadband infrastructure, and services, supporting the development of cloud and data hosting markets and enabling investments in modern data hosting facilities to unlock the development potential of digital data, which are the foundations for individuals, firms, and governments to use digital technologies productively. Component 2: Interoperable and safe data platforms. This component will focus on deploying interoperable DPI to enhance efficiencies in both public and private sectors and developing the cross-cutting enablers and safeguards needed for the trusted and safe use of digital technologies at the national level and for the flow of cross-border digital services across the region. Component 3: High-impact digital services and productive digital usage. This component focuses on advancing high-impact, digitally enabled services to help enhance economic and social activities with increased reach, improved efficiency, strengthened value proposition (including climate benefits, transparency, and accountability etc.), and increase digital skills and competencies to increase productive usage of these services. Component 4: Project Management, Capacity Building. This component will support the critical building blocks for strong implementation and coordination of the program at regional and national levels, with creaton of and capacity building for regional and national project coordination units, M&E improvements, knowledge generation and TA related to E&S risk management, and other operating expenses, equipment. Phase 1 of the MPA will include three operations, including a US$5m regional IDA grant to COMESA to set-up the MPA’s regional program coordination unit (PCU) and oversee the implementation of the MPA throughout the seven years of project implementation. COMESA is well-positioned to lead the regional coordination of the IDEA Program as it is mandated to support the creation of a common market and enhance digital infrastructure, supporting a transition towards a digital free trade area across most of the countries that For Official Use Only the MPA proposes to cover, and is already implementing directly relevant projects by the WB and Development Partner, including the WB-funded ASCENT Program (P180547) and Regional Infrastructure Investment Facility Project (RIFF, P171967). Project Components under the operation with COMESA include: Component 1: Regional Harmonization and Planning Platform: This component will aim to enhance the enabling environment for regional digital market development and integration, and create a platform to inform and mobilize investments for regional digital infrastructure. Activities under this component include: (i) establishing a regional policy compact to inform sector reforms and facilitate public private dialogue across the region towards private sector capital mobilization; (ii) developing regionally harmonized frameworks, guidelines and standards to promote digital access and usage; (iii) supporting integrated infrastructure planning, building on the mapping initiative under the ASCENT Regional Acceleration Platform, to cover digital infrastructure and demand for Internet connectivity, and develop least cost options to connect cross-border areas and priority public entities such as schools and health clinics with energy access in mind; (iv) undertake technical assessments for regional financing mechanisms focused on increasing access to affordable, quality and resilient broadband, greening digital infrastructure, smart devices and digital services, which will be implemented and scaled in subsequent phases and leverage applicable financing schemes under ASCENT as much as feasible. Component 2: Regional Knowledge and Capacity Building: This component aims to support holistic knowledge transfer throughout the program cycle and build capacity for participating countries in a sustainable manner. Activities under this component include: (i) providing upstream project development and project implementation support for the development of digitalization initiatives; (ii) knowledge exchanges, capacity building focused on thematic areas under the MPA pillars for participating countries and COMESA member states; (iii) the development of practical tools for participating countries to accelerate program implementation, such as sample terms of reference for procurement, model environmental and social (E&S) instruments. Component 3: Regional Project Coordination and Management: This component will set up the IDEA’s regional Program Coordination Unit (PCU) to coordinate with participating countries, validate and report on the Program's results framework, leveraging innovative data collection, evidence generation, Mar 12, 2024 Page 3 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) raise awareness about the Program, and oversee the implementation of the regional grant to COMESA, including fiduciary E&S and other functions. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings [Description of key features relevant to the operation’s environmental and social risks and opportunities (e.g., whether the project is nationwide or regional in scope, urban/rural, in an FCV context, presence of Indigenous Peoples or other minorities, involves associated facilities, high-biodiversity settings, etc.) – Max. character limit 2,000] The AFE region has diverse range of environmental and social characteristics. The salient physical features and key environmental aspects of the region include a variety of landforms such as mountains, plateaus, plains, and deserts. Examples include the Great Rift Valley, Mount Kilimanjaro, the Ethiopian Highlands, and the Sahara Desert. The Nile, Zambezi, Congo, and Limpopo rivers traverse the region. Lake Victoria, Lake Tanganyika, Lake Malawi, and Lake Kariba are important freshwater bodies in the region. The region is known for rich biodiversity and natural resources. It has various ecosystems, including tropical rainforests, savannas, wetlands, and coastal areas. Angola and DRC, which will implement national operations under Phase 1 are renowned for their unique and diverse flora and fauna. The region has a range of climates, from tropical to subtropical and desert. Countries like Kenya, Tanzania, and Uganda have diverse climatic zones, including equatorial, highland, and coastal regions. The region is home to a large and diverse population, countries like Rwanda, Ethiopia, Kenya and DRC have high population densities, while others like Eswatini have smaller less dense populations. The region exhibits a wide range of ethnic groups, languages, and cultures, including the Bantu, Nilotic, Cushitic, Afro-Asiatic ethnic communities, and For Official Use Only others; each contribute to the cultural tapestry of the region. The countries have varying levels of economic development. Some nations, like Kenya, Rwanda, and Ethiopia, have relatively well developed economies, while others, such as Malawi, Zambia, and South Sudan, face socio-economic challenges of poverty, limited access to healthcare and education. Key social issues include rural/urban poverty, economic development, unemployment, low incomes and gender inequality. Increased displacement of populations from fragility, conflict and violence, including social unrest has disrupted access to basic social services in many countries. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts [Description of Borrower’s capacity (i.e., prior performance under the Safeguard Policies or ESF, experience applying E&S policies of IFIs, Environmental and social unit/staff already in place) and willingness to manage risks and impacts and of provisions planned or required to have capabilities in place, along with the needs for enhanced support to the Borrower – Max. character limit 2,000] COMESA will host the regional Project Coordination Unit (PCU) under MPA Phase 1 and serve as an overall coordinator of regional MPA activities for participating countries and other Regional Economic Communities (RECs). COMESA will house the PCU and convene the Regional Project Steering Committee (RPSC). The PCU will directly coordinate with the PIUs at country level to ensure a region-wide approach. The RPSC will bring together all the participating countries and regional entities. COMESA has a wide and relevant membership in AFE, and a mandate to support the creation of a common market, including the explicit goal of enhancing cross-border digital infrastructure and digital transactions. The COMESA Secretariat is an experienced WB Implementing Agency (IA), and the IDEA Program will leverage existing Mar 12, 2024 Page 4 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) implementation structures and arrangements under ASCENT (P180547) and RIFF (P171967) as much as possible to ensure a coordinated approach across the projects, including exploring synergies for E&S capacity building through COMESA's role in the ASCENT program. A detailed capacity assessment of financial management, procurement and E&S capacity at COMESA will be carried out by the Bank during project preparation to identify capacity constraints and mitigation measures. At the national level, MPA operations will primarily be implemented through existing or new project implementation units (PIUs), typically based in the Ministries with national responsibilities for digital development. For the DRC Phase 1 operations, the Ministry of Posts, Telecommunications and New Technologies (MPTNTIC) will be the lead implementing agency (IA) managing day-to-day project administration and housing a dedicated PIU. For Phase 1 Angola operations, the Instituto de Modernização Administrativa (IMA) will be the implementing and coordinating government agency and will host the PIU. Each of these borrower’s PIU capacity to manage E&S risks is being assessed as part of project preparation. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate A.1 Environmental Risk Rating Moderate [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on For Official Use Only Screening and Risk Classification under the ESF – Max. character limit 2,000] The environmental risk rating for COMESA’s operations under MPA Phase 1 is Moderate, although the risk rating will be reviewed during preparation. Proposed COMESA Phase 1 activities, including planning for regional harmonization of policies and planning activities, regional knowledge and capacity building and overall MPA coordination and management at the regional level are not expected to generate significant environmental risk or impacts in and of themselves. However, COMESA is expected to carry out a number of TA activities which may create policies or contribute to integrated regional infrastructure plans which could create downstream environmental risk when those policies or infrastructure plans are put into action. Potential downstream adverse environmental risks and impacts could include those associated with occupational health and safety concerns, including physical hazards, injuries, and accidents; community health and safety issues; noise and vibration; electronic waste management issues; pollution, etc. Country level operations to be carried out by Angola and DRC under Phase 1 as well as subsequent phases may have higher environmental risk levels than for COMESA. More details on those country-level operations are provided in their C-ESRSs and other project ESF instruments. A.2 Social Risk Rating Moderate [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 2,000] Social Risk is considered Moderate for COMESA’s operations underthe MPA, although this will be reviewed and revisited at Appraisal if needed. Each operation in the MPA will have its own social risk classification. The categories of activities that COMESA will carry out, including planning for regional harmonization of policies and planning activities, regional knowledge and capacity building, and overall MPA coordination at the regional level are unlikely to create significant direct or indirect social risks or impacts to potentially affected parties in the countries expected to Mar 12, 2024 Page 5 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) participate in this ten-year project. However, some TA, such as regional integrated infrastructure planning, and for enabling possible policy reforms could lead to downstream social risks and impacts, which will be further assessed as part of the Bank’s due diligence. The TA, including development of TORs and other E&S instruments, will need to be consistent with the ESF, and include screening mechanisms to minimize social risks to potential beneficiaries and other project affected people. Possible downstream social risks associated with TAinclude (i) small-scale land acquisition, loss of assets, economic or physical displacements; (ii) lack of inclusion in a project’s social benefits for vulnerable and marginalized groups, particularly those in remote areas, along with the risk of elite capture of project benefits; (iii) SEA/SH risks, particularly related to construction or power dynamics that may occur from providing access to digital technologies and services, including cyber harassment; (iv) risks associated with the potential misuse of digital personal data if proper privacy safeguards are not in place. Country-level projects, such as those proposed for Angola and DRC, may have Substantial Social risks related to infrastructure works, including community health and safety risks. Those risks will be assessed and reflected in their respective E&S risk management instruments. [Summary of key factors contributing to risk rating. This attribute is only for the internal version of the download document and not a part of the disclosable version – Max. character limit 2,000] B. Relevance of Standards and Policies at Concept Stage B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant For Official Use Only [Optional Explanation - Max. character limit 1,000] There are unlikely to be significant environmental and social risks and impacts arising from COMESA’s role under Phase 1 in promoting regional harmonization, integration, and buildout of national and cross-border access to internet and digital services. The primary risks likely to arise from COMESA activities will be through TA to develop policies and integrated regional integrated planning for infrastructure investments which may create moderate downstream environmental and social impacts in targeted communities or infrastructure corridors. Screening mechanisms will be included in TOR development and infrastructure planning to ensure environmental and social risks are minimized at national, cross-border and regional levels, and consistent with the ESF. Some country-level projects to be developed under Phase 1 and future MPA phases may have higher risk ratings, such as DRC’s Phase 1 operations, which carry a Substantial ESRC rating due to E&S risks related to expected civil works. ESS10 - Stakeholder Engagement and Information Disclosure Relevant [Optional Explanation - Max. character limit 1,000] COMESA will carry out stakeholder engagement activities and develop, disclose, and implement an inclusive Stakeholder Engagement Plan (SEP) proportional to the nature and scale of its operations. COMESA stakeholders are likely to include supporting ministries, regional and national academic institutions, civil society, technical organizations, regulatory authorities and the private sector. The SEP will include a Project Grievance Mechanism (GM) to receive and respond to grievances from project stakeholders. SEPs also will be prepared by each country participating in Phases 1 and future MPA phases to ensure there is engagement at the national level, with COMESA Mar 12, 2024 Page 6 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) expected to take a lead on regional engagement on the program. The GMs of both COMESA and country operations shall be equipped to receive, register and faciliate resolution of SEA/SH complaints. The SEPs shall be disclosed by Appraisal, including a record of the stakeholder engagement activities carried out to date. ESS2 - Labor and Working Conditions Relevant [Optional Explanation - Max. character limit 1,000] COMESA PCU operations may include direct workers, contracted workers and primary supply workers. The COMESA Secretariat has in place labor and working conditions policies for its workforce, including a labor grievance mechanism established under ASCENT operations, to be verified against ESS2 during preparation. The POM willinclude relevant HR, occupational health and safety (OHS) and SEA/SH prevention and response measures to meet ESS2 requirements. Country level projects, including DRC and Angola and other countries in future phases are also be expected to address worker issues, most likely through the preparation of Labor Management Procedures (LMP), which may be incorporated in other ESF instruments. More details on these can be found in the ESF instruments prepared for these operations under this and future phases. ESS3 - Resource Efficiency and Pollution Prevention and Management Not Currently Relevant [Optional Explanation - Max. character limit 1,000] ESS3 is not considered relevant to COMESA Operations at this stage. For Official Use Only ESS4 - Community Health and Safety Not Currently Relevant [Optional Explanation - Max. character limit 1,000] ESS4 is not considered relevant to COMESA Operations at this stage. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant [Optional Explanation - Max. character limit 1,000] ESS5 is not considered relevant to COMESA Operations at this stage. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Not Currently Relevant Resources [Optional Explanation - Max. character limit 1,000] ESS6 is not considered relevant to COMESA Operations at this stage. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities [Optional Explanation - Max. character limit 1,000] Mar 12, 2024 Page 7 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) ESS7 is not considered relevant to COMESA Operations at this stage. ESS8 - Cultural Heritage Not Currently Relevant [Optional Explanation - Max. character limit 1,000] ESS8 is not considered relevant to COMESA Operations at this stage. ESS9 - Financial Intermediaries Not Currently Relevant [Optional Explanation - Max. character limit 1,000] ESS9 is not considered relevant to COMESA Operations at this stage. B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No For Official Use Only B.3 Other Salient Features Use of Borrower Framework No [Optional explanation – Max. character limit 1,000] The use of the borrower framework is not expected under the MPA. In the case of ESS2, the COMESA Secretariat has in place labor and working conditions policies for its workforce, including a grievance mechanism developed under the ASCENT project, to be verified against ESS2 during project preparation, with potential gap-filling measures to be identified in the POM and ESCP. Use of Common Approach No [Optional Explanation including list of possible financing partners – Max. character limit 1,000] There are other possible financing partners being discussed at this stage, however the assumption is that the World Bank ESF will be used by MPA Phase 1 and subsequent phases for E&S risk and impact management. B.4 Summary of Assessment of Environmental and Social Risks and Impacts [Description provided will not be disclosed but will flow as a one time flow to the Concept Stage PID – Max. character limit 5,000] The environmental risk rating for COMESA’s operations under MPA Phase 1, is Moderate, although the risk rating will be reviewed during preparation. Proposed COMESA Phase 1 activities, including planning for regional harmonization of policies and planning activities, regional knowledge and capacity building and overall MPA coordination and management Mar 12, 2024 Page 8 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) at the regional level are not expected to generate significant environmental risk or impacts in and of themselves. However, COMESA is expected to carry out a number of TA activities which may create policies or contribute to integrated regional infrastructure plans which could create downstream environmental risk when those policies or infrastructure plans are put into action. Potential downstream adverse environmental risks and impacts could include those associated with occupational health and safety concerns, including physical hazards, injuries, and accidents; community health and safety issues; noise and vibration; electronic waste management issues; pollution, etc. Country level operations to be carried out by Angola and DRC under Phase 1 as well as subsequent phases may have higher environmental risk levels than for COMESA. More details on those country-level operations are provided in their C-ESRSs and other project ESF instruments. Social Risk is considered Moderate for COMESA’s operations under the MPA, although this will be reviewed and revisited at Appraisal if needed. Each operation in the MPA will have its own social risk classification. The categories of activities that COMESA will carry out, including planning for regional harmonization of policies and planning activities, regional knowledge and capacity building, and overall MPA coordination at the regional level are unlikely to create significant direct or indirect social risks or impacts to potentially affected parties in the countries expected to participate in this ten- year project. However, some TA, such as regional integrated infrastructure planning, and for enabling possible policy reforms could lead to downstream social risks and impacts, which will be further assessed as part of the Bank’s due diligence. The TA, including development of TORs and other E&S instruments, will need to be consistent with the ESF, and include screening mechanisms to minimize social risks to potential beneficiaries and other project affected people. Possible downstream social risks associated with TAinclude (i) small-scale land acquisition, loss of assets, economic or For Official Use Only physical displacements; (ii) lack of inclusion in a project’s social benefits for vulnerable and marginalized groups, particularly those in remote areas, along with the risk of elite capture of project benefits; (iii) SEA/SH risks, particularly related to construction or power dynamics that may occur from providing access to digital technologies and services, including cyber harassment; (iv) risks associated with the potential misuse of digital personal data if proper privacy safeguards are not in place. Country-level projects, such as those proposed for Angola and DRC, may have Substantial Social risks related to infrastructure works, including community health and safety risks. Those risks will be assessed and reflected in their respective E&S risk management instruments. The SEA/SH Risk rating for COMESA’s Phase 1 operations is considered Moderate, in view of the proposed activities to be carried out by COMESA. While SEA/SH risks can be present in all workplaces, especially for women, the proposed activities to be carried out by COMESA are unlikely to lead to increased SEA/SH risk as the activities are moslty associated with technical assistance and capacity building activities. C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? [Description of expectations in terms of documents to be prepared to assess and manage the project’s environmental and social risks and by when (i.e., prior to Effectiveness, or during implementation), highlighted features of ESA documents, other project documents where environmental and social measures are to be included, and the related due diligence process planned to be carried out by the World Bank, including sources of information for the due diligence - Max. character limit 3,000] Mar 12, 2024 Page 9 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) Preparation, consultation, and disclosure, prior to Appraisal, of: • Environmental and Social Commitment Plan (ESCP) for COMESA Phase 1 operations • Draft Stakeholder Engagement Plan (SEP) for COMESA Phase 1 operations, including an accessible and inclusive GM that is sensitive to GBV/SEA/SH issues and risks, and a record of the stakeholder activities carried out to date. As COMESA’s role is better defined during preparations, additional instruments to be produced by early project implementation would include: • Project Operations Manual (POM), including E&S Screening criteria for TA activities to be carried out by COMESA to ensure alignment with the ESF, as well any requisite labor management procedures, norms of conduct, and SEA/SH measures to be carried out by COMESA. III. CONTACT POINT Contact Point Task Team Leader: Cecilia Maria Paradi-Guilford Title: Senior Digital Development Specialist Email: cparadiguilford@worldbank.org For Official Use Only TTL Contact: Timothy John Charles Kelly Job Title: Lead Digital Development Specialist Email: tkelly@worldbank.org TTL Contact: Lavanya Choudhary Job Title: Young Professional Email: lchoudhary@worldbank.org IV. 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 V. APPROVAL Task Team Leader(s): Cecilia Maria Paradi-Guilford, Timothy John Charles Kelly, Lavanya Choudhary ADM Environmental Specialist: Paulo Jorge Temba Sithoe Mar 12, 2024 Page 10 of 11 The World Bank Inclusive Digitalization In Eastern And Southern Africa (idea) (P502532) V. APPROVAL ADM Social Specialist: Richard Everett For Official Use Only Mar 12, 2024 Page 11 of 11