The impact of digitalization on poverty alleviation in Africa

Dirk Kohnert

MPRA Paper from University Library of Munich, Germany

Abstract: Digitalization in Sub-Saharan Africa enhanced the accessibility of communications by the majority of the poor who had been excluded among others from social media, independent information channels, mobile banking and e-commerce. The creation of new economic opportunities, e.g. the pay-as-you-go business, and increased flow of information also boosted people’s self-esteem, sense of belonging and citizenship. The smartphone became the main source of internet access which also bridged the divide between urban and rural communities. Thus, mobile telecommunications contributed positively to economic growth even in less developed regions, and there is apparently still ample space for further improvement. Yet, Africans were also confronted with new forms of the digital divide between the poor and the rich, between advanced and less advanced African countries, as well as between Africa and the rest of the world. Moreover, the digitalization of the public sphere became a double-edged sword. Autocratic governments like Sudan and Togo shut down the internet during elections to facilitate the rigging of the polls. The lack of transparency and objectivity fuelled fake news which rapidly spread in social media, notably in times of the Corona crisis. Last, but not least, not everybody surfing in the internet had the same access to quality information. For example, disinformation was supported clandestinely by foreign powers to destabilize political regimes, or spy software was provided to governments to control the opposition. Both false news in social media and spy-software impeded poverty relieve in Africa significantly.

Keywords: Digitalization; Africa; Sub-Sahara Africa; digital inclusion; poverty alleviation; pro-poor growth; transparency; social media; fake news; African Studies (search for similar items in EconPapers)
JEL-codes: D31 D63 D83 E26 F35 F54 F63 G21 N37 O17 O33 O55 Q48 Z13 (search for similar items in EconPapers)
Date: 2021-10-19
New Economics Papers: this item is included in nep-afr, nep-ict and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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