The World Bank’s latest brief, “Digital Transformation Drives Development in Africa,” highlights a significant breakthrough in poverty reduction.
Improved internet access in Nigeria and Tanzania, sustained over three years, resulted in a remarkable seven per cent decrease in extreme poverty, according to the World Bank’s flagship report in 2023.
This positive impact extends beyond poverty alleviation, with an eight per cent surge in labor force participation and wage employment attributed to increased internet connectivity.
Over the past five years (2016 – 2021), Sub-Saharan Africa experienced an extraordinary 115 per cent increase in internet users, fostering economic growth, innovation, and job opportunities.
Despite Nigeria boasting over five million active internet subscriptions, efforts are underway to expand coverage for more inclusive economic growth.
However, challenges persist, as outlined by the World Bank Chief Economist for Africa, Andrew Dabalen.
The high cost of mobile internet and a substantial digital gender gap, with women being 37 per cent less likely to use mobile internet compared to men, pose hurdles to digital inclusivity.
The report emphasises the need for continued efforts to bridge the gap between digital coverage and usage. In 2021, while 84 per cent of people in Sub-Saharan Africa lived in areas with 3G service availability, only 22 per cent were using mobile internet services.
Affordability remains a major constraint, with the cost of one gigabyte of mobile data exceeding the United Nations Broadband Commission’s recommended target.
Additionally, the region grapples with one of the widest digital gender gaps globally.
To address these issues, the World Bank is committed to digital development in Africa, investing $731.8 million across 11 Digital Development projects over six years.
As part of the broader Digital Economy for Africa initiative, the bank aims to digitally enable every individual, business, and government in Africa by 2030, with a total allocation of $2.8 billion across 24 projects over the past decade.
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