The World Bank has recently unveiled significant findings that underscore the transformative impact of improved internet access on poverty reduction and economic development in Nigeria and Tanzania.
In a brief titled "Digital transformation drives development in Africa," the World Bank reported a notable seven per cent reduction in extreme poverty over three years due to enhanced internet coverage in these two African nations.
The report also highlighted a parallel increase of 8 per cent in both labour force participation and wage employment as a direct result of expanded internet access. The findings, based on a flagship report from 2023, emphasized the crucial role that digital connectivity plays in shaping socio-economic outcomes.
Andrew Dabalen, the World Bank Chief Economist for Africa, emphasized the untapped potential of mobile internet usage in driving inclusive growth on the continent. He remarked, "The minimal usage of mobile internet is a lost opportunity for inclusive growth in Africa. Closing the uptake gap would increase the continent’s potential to create jobs for its growing population and boost economic recovery in a highly digitalized world."
The brief also shed light on the remarkable 115 per cent increase in internet users across sub-Saharan Africa over the past five years (2016-2021). This surge in connectivity has played a pivotal role in fostering economic growth, spurring innovation, and generating job opportunities in the region.
However, despite these positive trends, the brief highlighted that sub-Saharan Africa's digital infrastructure coverage, access, and quality still lag behind other regions. While 84 per cent of people in the region had access to 3G service by the end of 2021, only 22 per cent were actively using mobile internet services. The gap between coverage and usage is similarly substantial for broadband, with 61 per cent of people in sub-Saharan Africa having access to broadband but not utilizing it.
As the region grapples with this digital divide, the report underscores the need for concerted efforts to bridge the gap between internet coverage and usage, unlocking the full potential of digital connectivity for sustained economic growth and poverty alleviation.
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