The World Bank’s flagship report for 2023 has revealed that exposure to internet coverage over three years triggered a remarkable 7% reduction in extreme poverty in both Nigeria and Tanzania. The report also notes an 8% increase in labor force participation and wage employment in these countries.
The report underlines the transformative impact of internet access on poverty reduction, marking a paradigm shift in the economic situation of Sub-Saharan Africa (SSA). Over the past five years (2016-2021), the region experienced an astonishing 115% increase in internet users, catalyzing economic growth, fostering innovation, and creating job opportunities.
The World Bank has reaffirmed its commitment to digital development in Africa, having invested $731.8 million across 11 Digital Development projects over the past six years.
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In the last decade, a broader allocation of $2.8 billion has been made across 24 projects. These investments align with the Digital Economy for Africa (DE4A) initiative, striving to digitally empower every individual, business, and government in Africa by 2030.
Speaking about the transformative potential of digital development, David Malpass, President of the World Bank, noted, “The digital revolution is reshaping the economic landscape of Africa. Our investments in digital development projects are geared towards creating inclusive growth, generating job opportunities, and reducing poverty across the continent.”
Despite these promising strides, the journey toward digital inclusivity faces challenges, most notably the affordability of mobile connectivity and a persistent digital gender gap. The report highlights that the cost of mobile internet remains high, with women being 37% less likely to use mobile internet compared to men.
According to the brief, Sub-Saharan Africa still lags in digital infrastructure coverage, access, and quality compared to other regions. While 84% of people in SSA had access to 3G service by the end of 2021, only 22% were using mobile internet services. Affordability remains a significant constraint, with the average cost of one gigabyte (GB) of mobile data as a percentage of monthly per-capita Gross National Income (GNI) being 10.5% in 2019—well above the 2% target recommended by the United Nations Broadband Commission.
“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,” Andrew Dabalen, World Bank Chief Economist for Africa, stated.
The report further noted the stark digital gender gap in the region, with women being 37% less likely to use mobile internet. This disparity is a critical issue that needs urgent attention to ensure that the benefits of the digital revolution are accessible to all, regardless of gender.
Highlighting the urgency of addressing the digital gender gap, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated, “Closing the digital gender gap is not just a matter of social justice; it is an economic imperative. Empowering women with digital access is key to unlocking Africa’s full economic potential.”
The National Bureau of Statistics (NBS) in Nigeria revealed that 63% of the population (133 million people) are multidimensionally poor, with only 12% of working-age Nigerians engaged in wage employment. Despite having over 5 million active internet subscriptions, Nigeria still faces challenges in achieving wider internet coverage to catalyze inclusive economic growth.
Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, acknowledged that the cost of data in Nigeria is among the cheapest globally. However, he lamented that many operators are reluctant to lay fiber in rural areas due to perceived unprofitability.
In response to these challenges, the World Bank has recognized the need for continued efforts to make digital access more equitable and widespread. The bank’s ongoing investments, along with cooperation from governments and private sector stakeholders, will play a crucial role in overcoming barriers to digital inclusivity.
Against this backdrop, policymakers and industry leaders in Sub-Saharan Africa have been urged to collaborate to address issues of affordability, accessibility, and gender disparity.
The transformative potential of digital technology in poverty reduction is immense, and concerted efforts are essential to ensure that the benefits of the digital revolution reach every corner of the continent.