Digital divide and inclusive labor productivity growth in Sub-Saharan Africa

Abstract

Sub-Saharan Africa is more likely to overcome existing inequalities seen through labour productivity, financial inclusion, and economic participation, particularly among rural communities, women, and the economically disadvantaged. Although technology is evolving quickly, factors such as infrastructure gaps, high costs, and female disempowerment remain hindrances to inclusive growth in the area. This research will analyse these challenges, using a combination of quantitative and qualitative data, comparing World Bank and The International Telecommunication Union datasets of internet penetration and mobile money take-up and frameworks of productivity in 34 countries with targeted surveys of 1,000 households and businesses in Kenya, Nigeria, and South Africa. The range investigated comprise of user populations of individuals, households, and businesses from Sub-Saharan Africa, especially those that show notable differences between digital accesses in order to encompass a representative sample of the entire region of study. Results show that 84% of the population is within 3G reach. Yet less than 22% of the population can afford to use mobile internet, for instance, 10.5% of monthly income per 1GB of data or mobile devices (25% of GDP per capita). Digital gender gaps still exist, with 34–37% of women less likely to be digital enablers. Yet initiatives such as M-PESA in Kenya show that focused approaches can fill the void, driving a 37.5 million user increase in financial inclusion. Urgent policy action must address affordability, infrastructure, and digital literacy in order to realize productivity gains and equitable economic participation to help close the digital divide and foster inclusive, tech-enabled economic development throughout the region, thereby concluding the study.