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Higher digital connectivity is expected to bring opportunities to leapfrog development in sub-Saharan Africa (SSA). Experience within the region demonstrates that if there is an adequate digital infrastructure and a supportive business environment, new forms of business spring up and create jobs for the educated as well as the less educated. The paper first confirms the global digital divide through the unsupervised machine learning clustering K-means algorithm. Next, it derives a composite digital connectivity index, in the spirit of De Muro-Mazziotta-Pareto, for about 190 economies. Descriptive analysis shows that majority of SSA countries lag in digital connectivity, specifically in infrastructure, internet usage, and knowledge. Finally, using fractional logit regressions we document that better business enabling and regulatory environment, financial access, and urbanization are associated with higher digital connectivity.
Digital communications. --- Communications, Digital --- Digital transmission --- Pulse communication --- Digital electronics --- Pulse techniques (Electronics) --- Telecommunication --- Digital media --- Signal processing --- Digital techniques --- Infrastructure --- Macroeconomics --- Public Finance --- Intelligence (AI) & Semantics --- Demography --- Index Numbers and Aggregation --- leading indicators --- Technological Change: Choices and Consequences --- Diffusion Processes --- Comparative Studies of Countries --- Taxation, Subsidies, and Revenue: General --- Investment --- Capital --- Intangible Capital --- Capacity --- Demographic Economics: General --- Aggregate Factor Income Distribution --- Public finance & taxation --- Population & demography --- Machine learning --- Information technology in revenue administration --- Population and demographics --- Income --- Revenue administration --- National accounts --- Technology --- Revenue --- Saving and investment --- Population --- Cabo Verde
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Digital Connectivity in sub-Saharan Africa: A Comparative Perspective.
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Bridging the Mobile Digital Divide in Sub-Saharan Africa: Costing under Demographic Change and Urbanization.
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Digital connectivity, including through the modern cellular network technologies, is expected to play a key role for the Future of Work in sub-Saharan Africa (SSA). We estimate the cost of introducing a full-scale 4G network by 2025 in SSA and an operable 5G network by 2040. We adapt the costing model of Lombardo (2019) by accounting for the significant demographic transformation and rapid urbanization in SSA. We use the WorldPop and GADM databases and the UN’s medium-variant population projections to project the population densities at the highest level of administrative division for each SSA country in 2025 and 2040. For full 4G connectivity, the required capital and operational costs stands approximately at US$14 billion by 2025 and for 5G connectivity, costs amount to US$57 billion in 2040, conditional on having the 4G in place by 2025. These costs roughly translate to 8.4 percent of annual subscriber income, on a median basis, by 2025 for 4G and 4.9 percent of subscriber income by 2040 for 5G. Having the infrastructure in place is not sufficient to bridge the mobile Digital Divide. In addition, policies are needed to address affordability and knowledge gaps.
Mobile communication systems--Africa. --- Africa. --- Infrastructure --- Public Finance --- Demography --- Technological Change: Choices and Consequences --- Diffusion Processes --- Demographic Trends, Macroeconomic Effects, and Forecasts --- Demographic Economics: General --- Investment --- Capital --- Intangible Capital --- Capacity --- National Government Expenditures and Related Policies: Infrastructures --- Other Public Investment and Capital Stock --- Innovation --- Research and Development --- Technological Change --- Intellectual Property Rights: General --- National Government Expenditures and Related Policies: General --- Population & demography --- Public finance & taxation --- Macroeconomics --- Technology --- general issues --- Population and demographics --- Capital spending --- Public expenditure review --- National accounts --- Expenditure --- Population --- Saving and investment --- Capital investments --- Expenditures, Public --- Korea, Republic of --- Mobile communication systems.
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