Compliance Challenges in Digital Banking Hinder Marshall Islands’ Economic Growth
The World Bank has approved a significant project to address compliance challenges in digital banking and promote investment in climate-resilient digital infrastructure in the Marshall Islands. The project aims to provide faster, more reliable, and more affordable internet access across the country, which currently faces extreme limitations and high costs.
Project Objectives
The Digital RMI project will be implemented over seven years and is led by the Government of Marshall Islands through its Ministry of Finance, Banking & Postal Services and the Ministry for Transport, Communications and Information Technology. The project’s objectives include:
- Promoting private sector investment in climate-resilient digital infrastructure
- Establishing foundations for digital government services
- Increasing access to online economy
Importance of Digital Connectivity
According to Stephen Ndegwa, World Bank Country Director for Papua New Guinea and the Pacific Islands, “COVID-19 has only served to underscore the importance of being digitally connected. We are proud to be standing with Marshall Islands to improve internet access for all Marshallese, and to invest in the development of digital government services and the digital economy.”
Addressing Connectivity Issues
The project’s success will depend on addressing connectivity issues in four key areas:
- Investing in energy-efficient, disaster- and climate-resilient digital infrastructure across all 24 inhabited atolls and islands
- Investing in digital government platforms, cybersecurity, and digital skills
- Prioritizing key services such as e-health and e-education
Project Details
The project’s total cost is US$37.5 million, with a US$30 million grant from the International Development Association (IDA) and US$7.5 million of private capital.
Partnership and Impact
The World Bank works in partnership with 12 countries across the Pacific supporting projects totaling US$2.06 billion in commitments. According to Kino Kabua, Marshall Islands Government Chief Secretary, “I sincerely thank the World Bank for its support of the Digital RMI project. This project will secure a more prosperous future and greater opportunities for every citizen of Marshall Islands through faster, more reliable, and more affordable digital connectivity.”