Digitalisation could boost Africa’s poorest countries, says World Bank

Digitalisation could improve fiscal policy, the quality of public administration and the fortunes of the private sector in some of Africa’s poorest countries, according to a report from the World Bank.

The annual Country Policy and Institutional Assessment (CPIA) report, which rates International Development Association (IDA) eligible countries on their policies and institutional arrangements, said that high speed internet in Sub-Sarahan African countries “increases the probability of employment by between 6.9 and 13.2% as well as increasing the growth of output per worker and reducing poverty.”

“On the digital side, expansion of information technology has the potential to be transformational in the region, potentially allowing for significant structural changes across economic activity,” the report states.

IDA-eligible countries are those with a gross national income per capita below a certain threshold – in fiscal year 2024, this was $1,315.

The report says that digital technology can boost job creation through a variety of channels, including matching firms to workers, enabling productivity-enhancing activities, improving market access and sales, and reducing informational frictions.