Information and communication technology penetration level as an impetus for economic growth and development in Africa

Abstract

Africa is an emerging, frontier economy that is gradually becoming a gold miner of the fourth industrial revolution (industry 4.0) to achieve speedy economic growth and development. Through the transmission channel of technological drive that relies on the penetration of modern communication means (information and communication technology [I.C.T.]). It is on this basis that this study examines the performance of I.C.T., economic growth and development in Africa. In capturing I.C.T. performance; penetration of I.C.T. indicators – mobile telephone, fixed-line telephone and Internet access subscriptions are used as measurements and reduced to a single index through principal components analysis (P.C.A.). Economic growth and development is measured with the real gross domestic product and the human development index (H.D.I.), respectively. The data for this study were sourced from the international telecommunication union (I.T.U.) and world development indicators from the World Bank databases. The results show that mobile telecommunication is growing faster than other telecommunication indicators and I.C.T. penetration has positive impacts on economic growth and development in Africa. The study, therefore, recommends that simultaneous investments are required in the fixed-line and Internet access telecommunications in Africa in order to fully tap into the optimal impetus of I.C.T. penetration for economic growth and development in Africa.