Turning Africa’s digital divide into digital dividends Fenohasina Rakotondrazaka Maret In Nairobi, Kenya, technological advances like Uber have brought positive disruption and significant benefits to consumers. The country has been called the Silicon Savannah for having hatched various technological innovations. But in some parts of Kenya, it’s not uncommon to wait for hours to get a stable Internet connection. In the capitals of Madagascar and Burkina Faso, where smartphone and computer ownership is still low, people have to go to cybercafés to access the Internet, usually on run-down computers with old software, and even then, connection speeds may be painfully slow. Slow connection speeds and lack of Internet access aren’t just a hassle though, they’re signs of the digital divide that sets many African countries behind. The World Bank’s World Development Report 2016 provides an in-depth analysis of countries’ access to and use of the Internet, mobile phones, and tools to collect, store, analyze, and share information digitally. We revisited the latest data and observed a persistent digital divide, particularly in sub-Saharan Africa. Sub-Saharan Africa lags furthest behind in Internet access. In sub-Saharan Africa, only 19 percent of the population had Internet access in 2016, compared with 77 percent in North American regions. Access within sub-Saharan Africa is unequal. In Kenya, Nigeria, and South Africa, 48 percent of the population had Internet access. In Ethiopia, Malawi, and Tanzania, 9 percent had access. Internet Users per 100 People 90,00 80,00 North America 70,00 Europe & Central Asia 60,00 Latin America & Caribbean 50,00 East Asia & Pacific 40,00 Middle East & North Africa 30,00 South Asia 20,00 Sub-Saharan Africa 10,00 0,00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 In sub-Saharan Africa, Francophone countries lag behind in Internet access relative to Anglophone countries. Francophone countries have lower GDP compared with Anglophone countries. Smartphone ownership is low as well. In countries like Senegal and Burkina Faso, less than 25 percent of the population own a smartphone. There is also a gender gap, where male internet access exceeds female’s by at least 5 percent on average in Sub-Saharan Africa. Internet Access in Anglo, Franco and Lusophone Africa 25 20 15 10 5 0 Anglophone Francophone Lusophone Figure 2: Use of internet by the language use history of the country Anglophone, Lusophone Francophone (Data Source International Telecommunication Union, World Telecommunication/ICT Development Report and database, and World Bank . In this dataset, Anglophone countries include Botswana, Ethiopia, Ghana, Kenya, Lesotho, Liberia, Malawi, Namibia, Nigeria, Sierra Leone, Sudan Swaziland, Tanzania, Uganda, Zambia, Zimbabwe, Cameroon, Mauritius and Rwanda. Francophone countries include Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Gabon, Guinea, Madagascar, Mali, Mauritania, Niger, Republic of Congo, Senegal, Togo. Cameroon, and Rwanda are counted as both Anglophone and Francophone in this data.) What are these African countries missing out on? Digital technologies promote job creation, boost economic growth, and improve government services. Greater access to technology increases inclusion, efficiency, and innovation. Job creation, investment and innovation Better Internet access boosts employment and earnings in the information and communications technologies sectors, which include such jobs as mobile application development and network administration. But most important, better Internet access increases employment and earnings in the sectors that use information and communications technology. For example, companies in developed countries often outsource their work to developing countries to reduce costs and increase efficiency. Companies determine where to outsource based on various criteria, including the cost and quality of telecommunication infrastructures. The World Bank report states that almost half of this type of outsourcing is in banking and financial services, and another 20 percent is in technology and telecommunications. According to A. T. Kearney, which ranks the top outsourcing destinations worldwide, only five sub-Saharan African countries are ranked in the top 50: Ghana (29th), Mauritius (30th), Kenya (39th), Senegal (45th), and South Africa (48th). Among those five, Senegal is the only Francophone country, and it has a 22 percent Internet access rate. The four Anglophone countries average a 43 percent Internet access rate. Compared with Anglophone countries, which have better-quality infrastructure, Francophone countries are less attractive outsourcing destinations and miss out on job creation opportunities. Research also has shown that ICT investment and socio-economic development are positively correlated, therefore playing a major role in driving sustainable inclusive growth. And the whole digital economy equation includes attracting Foreign Direct Investment, building entrepreneurship, and spurring innovation. Higher labor productivity boosted by online education Internet access also promotes higher labor productivity through better access to online education. For instance, people have access to free high-quality education from anywhere through massive online open courses. The empirical data on how these online courses directly affect economic development are limited. But the World Development Report shows that higher education is associated with more access to employment opportunities and higher earnings, which reflects the high demand for advanced skills. The positive impact of higher education is especially strong among women (figure 3). Easy access to high-quality online education enables the poor, women, minorities, and people in remote regions to receive quality education they would not have otherwise. Average rate of return for one additional year of education in higher education Men Low and Middle Income Countries Women Low and Middle Income Countries Men High Income Countries Women High Income Countries 25 Percent 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Figure 3: Average rate of return for one additional year of education in higher education Source: Montenegro, Claudio E., and Harry Anthony Patrinos. Comparable estimates of returns to schooling around the world. The World Bank, 2014. https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-7020 Notes: includes 97 countries and only wage employees. The regressions control for potential experience and potential experience squared using individuals ‘age. Even with Internet access, language barriers prevent many people from taking these courses. About 75 percent of these online courses use English, which makes it difficult for people in non-English-speaking countries to benefit. English is the number one language of the internet, followed by Chinese and Spanish. Stronger government accountability through citizen engagement Internet access also allows citizens to engage with their government. For example, the I Paid a Bribe website in India and the U-report in Uganda have shown huge uptake. In the Urban Institute’s work in Tanzania, the US Agency for International Development helped each local government share information on their websites with citizens. When governments go digital, they streamline systems and bring in efficiency, reducing transaction time and costs for businesses and citizens in providing services online such as licenses, permits and various forms. Governments can also interact more easily with citizens, and tap into collective intelligence to bolster its performance, inclusion and responsiveness to citizens’ needs. Shifts needed to close the digital divide: Going digital provides many promises to Africa, from young mothers having access to 24/7 medical advice to management of forest and poaching activities through satellite. The private sector can help close the digital gap. Facebook, for example, announced in 2017 plans to use land-based and satellite technologies to provide better Internet access to African countries. But public investment and involvement will be necessary to reap the digital dividends. Making the Internet more accessible and affordable should be among governments’ priorities, particularly in sub-Saharan African countries that lag behind the most. Researchers who studied African poverty through an historical perspective conclude that the failure by Africans to adopt modern technologies even when they were aware of their existence is one of the reasons that made Africa fail to make progress in the past. We should learn from history because Africans cannot afford to miss the digital golden opportunity. Africa needs to develop a clear digital agenda. That agenda should include attracting capital investment oriented in the digital economy and improving the ecosystem for startups and opportunities for digital innovation. It also needs new policies and regulations aligned with digital trends to enhance cooperation within governments. These policies should help avoid any unwanted effects of going digital, such as threats to individual privacy or cybersecurity. High-quality digital infrastructure with excellent connectivity coverage, ultra-fast broadband and good affordability for ordinary citizens relies on access to electricity, a mandatory requirement in addition to the other digital infrastructure and environment required. Building the talent pool with good foundations in primary and secondary education to foster universal digital literacy as well as adopting an effective strategy to “reskill” or “upskill” the workforce will be a key enabler of digital dividends. Because the dividends lie not just in mere connectivity but also in access to big data, artificial intelligence, data science, blockchain, robotics and other fast-emerging technologies which have the power to transform lives and support sustainable and resilient societies. In fact, there is much more to bridging the digital divides, from broadening access to deepening usage, where users take full advantage of ICTs. The figure below charts the access to internet and Facebook usage in Africa. Correlation between Facebook Usage and Internet Access 90% Kenya 80% Seychelles Facebook Users per population 70% Mali 60% Mauritius Senegal South Africa 50% Nigeria 40% Uganda Zambia Zimbabwe Tanzania Cabo Verde Gabon Botswana Ghana Benin Swaziland Namibia Rwanda Sudan Lesotho Sao Tome & Principe Cote d'Ivoire EquatorialCameroon Guinea Burkina FasoAngola Gambia Mauritania Mozambique South Sudan Comoros Ethiopia Guinea Congo Sierra TogoLeone Malawi Liberia Somalia Madagascar Guinea-Bissau Congo, Dem. Rep. Burundi Central African Rep. Chad Niger Eritrea 30% 20% 10% 0% 0% 10% 20% 30% 40% Internet Users per population Sources: Graph using data from internetworldstats.com 50% 60% 70%
