Kiribati Seeks to Boost Digital Economy with Improved Internet Connectivity

Introduction

The Pacific island nation of Kiribati is taking concrete steps to improve its internet and mobile connectivity, aiming to boost its digital economy and facilitate trade and e-commerce. With a low percentage of internet penetration (around 30%) and limited access to fixed broadband, the country faces significant challenges in realizing its development goals.

National ICT Policy 2019

According to the latest National ICT Policy 2019, Kiribati aims to:

• Increase space for e-commerce and e-government initiatives as levers of private sector growth and improved government services delivery
• Recognize the need for a regulatory framework to support the development of e-commerce

Challenges

Kiribati’s limited internet connectivity is particularly severe in the outer islands, where mobile penetration rates are low (around 48% in South Tarawa, nearby atolls, and Kiritimati Islands). International connectivity relies heavily on satellite links, which are expensive and offer limited capacity.

Some of the challenges faced by Kiribati include:

• Limited trade opportunities
• Inadequate physical infrastructure
• Lack of a legislative framework recognizing electronic documents and transactions
• Limited e-payment and cashless options available

Efforts to Overcome Challenges

To address these challenges, Kiribati has introduced a second mobile operator, which is expected to boost competition and drive growth in the digital economy. The country is also seeking support from international organizations such as UNCTAD and UNCITRAL to develop its e-commerce infrastructure.

Additionally, Kiribati aims to:

• Develop skills and awareness for e-commerce through higher education and training programs
• Improve postal services as an alternative way of shipping goods domestically and internationally
• Enhance the operational readiness of Kiribati Post

Conclusion

Kiribati’s efforts to improve its internet and mobile connectivity are critical to realizing its development outcomes related to the digital economy and trade. While there are significant challenges to overcome, the country is taking steps in the right direction to boost its digital economy and facilitate e-commerce.

By developing its skills and awareness for e-commerce, improving postal services, and enhancing operational readiness of Kiribati Post, the country can overcome some of the major bottlenecks hindering its digital adoption. With continued efforts and support from international organizations, Kiribati is poised to realize its development goals related to the digital economy.