Internet access reduced poverty by 7% in Nigeria and Tanzania in 2023 – World Bank
The World Bank has reported that enhanced Internet coverage over three years contributed to a seven per cent decline in extreme poverty in Nigeria and Tanzania.
The bank revealed this in its report titled “Digital transformation drives development in Africa.” Additionally, the brief noted that improved Internet access resulted in an eight per cent increase in labour force participation and wage employment.
Over the past five years (2016 – 2021), Sub-Saharan Africa experienced an extraordinary 115 per cent increase in Internet users. This change has been instrumental in spurring economic growth, fostering innovation, and creating job opportunities.
“In 2023, a World Bank flagship report found that in Nigeria and Tanzania, extreme poverty declined by about 7 per cent after three or more years of exposure to internet coverage, while labour force participation and wage employment increased by up to eight per cent.”
World Bank Chief Economist for Africa, Andrew Dabalen, stressed in the brief, “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 digitalised world.”
Despite the positive strides made, the path to digital inclusivity encounters obstacles, notably in the form of challenges related to the affordability of mobile connectivity and a persistent digital gender gap.
In 2021, the median cost of an entry-level internet-enabled handset represented more than 25.2 per cent of the monthly gross domestic product per capita.
Also, the region has one of the widest digital gender gaps globally. “The greatest disparity exists for internet use, where women are 37 per cent less likely than men to use mobile internet according to 2023 GSMA data,”
“In 2021, around 470 million people in Sub-Saharan Africa did not have proof of ID, preventing them from fully benefiting from critical public and some private services.” the report read.
The digital infrastructure in the region, encompassing coverage, access, and quality, still trails behind other regions. As of 2021, although 84 per cent of individuals in Sub-Saharan Africa (SSA) resided in areas with available 3G service and 63 per cent had access to 4G mobile coverage, only 22 per cent were utilizing mobile internet services.
Also, there is a substantial gap between coverage and usage of broadband, with 61 per cent of people in Sub-Saharan Africa having access to broadband coverage but not using it.
The World Bank stressed its dedication to digital development in Africa by allocating an investment of $731.8 million across 11 Digital Development projects over six years. In the broader context, the bank has committed $2.8 billion across 24 projects over the past decade.
