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The World Bank’s recent report, titled “Digital Transformation Drives Development in Africa,” highlights the positive impact of increased internet access on poverty reduction in Nigeria and Tanzania.
The study indicates that enhanced internet coverage over three years contributed to a significant seven percent decline in extreme poverty in these nations. Furthermore, exposure to internet access led to an eight percent increase in both labour force participation and wage employment.
Andrew Dabalen, the World Bank chief economist for Africa, emphasized the remarkable 115% surge in internet users across sub-Saharan Africa over the past five years (2016-2021). This growth has played a crucial role in stimulating economic development, fostering innovation, and generating employment opportunities. Dabalen highlighted the untapped potential for inclusive growth, stating that closing the mobile internet usage gap could significantly enhance Africa’s capacity to create jobs and drive economic recovery in an increasingly digital world.
However, despite the substantial coverage of digital infrastructure in sub-Saharan Africa, including 3G and 4G mobile services, the report notes that only 22% of the population was utilizing mobile internet services by the end of 2021. Similarly, a significant gap exists between broadband coverage (61%) and actual usage, indicating substantial room for improvement in leveraging digital resources for comprehensive growth in the region.
