World Bank Report: Improved Internet Access Reduces Poverty in Nigeria and Tanzania
Improved internet access in Nigeria and Tanzania has reportedly contributed to a significant reduction in poverty rates, according to a recent brief released by the World Bank. The brief, titled “Digital transformation drives development in Africa,” highlights the positive impact of increased internet exposure on poverty reduction and economic participation in these countries.
The World Bank’s flagship report for 2023 revealed that in Nigeria and Tanzania, extreme poverty declined by approximately seven percent after three or more years of increased internet coverage. Additionally, the report noted an increase of up to eight percent in labour force participation and wage employment as a result of improved internet access.
Andrew Dabalen, the World Bank Chief Economist for Africa, emphasized the potential of internet usage for inclusive growth on the continent. He highlighted the underutilization of mobile internet as a missed opportunity for Africa, stating that closing this gap could lead to job creation and economic recovery, particularly in a highly digitalized world.
The brief also highlighted the substantial growth in internet users in sub-Saharan Africa over the past five years (2016-2021), which saw a remarkable 115 percent increase. This surge in internet users has played a pivotal role in driving economic growth, fostering innovation, and creating job opportunities across the region.
However, despite the growth in internet usage, the brief pointed out that sub-Saharan Africa still lags behind other regions in terms of digital infrastructure coverage, access, and quality. While 84 percent of people in the region have access to 3G mobile coverage and 63 percent to 4G coverage, only 22 percent are actually using mobile internet services. Similarly, although 61 percent of people in sub-Saharan Africa have access to broadband coverage, the usage remains low.
The gap between coverage and usage indicates a significant untapped potential for digital connectivity in sub-Saharan Africa. Closing this gap could unlock new opportunities for economic development and improve the overall well-being of the region’s population.
The World Bank’s findings underscore the importance of digital transformation in driving economic progress and reducing poverty in Africa. As the continent continues to embrace digital technologies, there is a growing need to bridge the digital divide and ensure that the benefits of digital connectivity are accessible to all.
Daily Trust
