HOW INTERNET ACCESS IS DRIVING ECONOMIC GROWTH.

Over the years the debate concerning the internet accessibility in Africa centered on the digital divide. The disconnection between the people on and offline appeared to be insurmountably vast. And something great has taken place. Internet penetration has been on a boom across the continent and with this, the economic growth has been consequent. The relationship does not come by chance. As individuals go on the web, they receive new methods to earn, educate, and construct. The internet has become a motivator of opportunity, whether it is farmers monitoring market prices, freelancers with clients on the other side of the globe.

The Who, When, and How.

Statistics narrate a distinct story. It is said that Africa has recorded the quickest internet development in any part of the world in the last ten years (International Telecommunication Union). Africans that can access mobile broadband network have reached over six hundred million. This is still far away, but by far a dramatic increase, compared to a few years ago.

More to the point: data expenses have become significantly less expensive. Costs have been reduced through competition between the mobile network providers, coupled with investments in infrastructure. In some such countries as Nigeria, Kenya, and South Africa, a gigabyte of data is no more than a tenth of the cost five years ago. A decrease in price would imply that more people will be able to access the Internet on a regular basis, as opposed to occasional users.

The effects of this growth on the economy are quantifiable. A study by the World Bank discovered that in developing countries; a ten percent growth in broadband penetration results into 1.4 percent growth in gross domestic product. In the case of Africa, whereby broadband penetration is steadily rising, the possibility of further growth is immense.

The way the Internet Access Works to generate Jobs.

Internet access contributes to economic growth in the most straightforward manner by creating employment. And not the occupations of yesteryear, but the new types of work which were unknown two decades ago.

A key driver has been e-commerce. Through sites such as Jumia, Konga as well as thousands of smaller online stores anyone with a product can access customers way beyond their immediate vicinity. A tailor in a small town is able to sell to customers in Lagos or Nairobi. A farmer will be able to sell in various cities thus less wastage and more income. Such transactions could not have been done in the past when there was no internet access.

There has also been the establishment of the gig economy. Examples of the freelance sites such as Upwork, Fiverr, and Toptal help African professionals find jobs worldwide. A graphic artist in Accra will be able to work at a company in London. Nairobi has a virtual assistant that can assist business in New York. These are the workers whose income is in a foreign currency who spend domestically and who accumulate the skills which raise the likelihood of their future earning capacity.

Internet access sustains ordinary employment, beyond direct work on the internet. A mechanic to whom it is possible to research methods of repair online will be more productive. An Instagram-based hairdresser sells her services more easily. A restaurant with an online delivery application reaches a clientele who are not going to walk into the door. The internet augment and does not substitute businesses.

The Entrepreneurial Explosion

The barriers to the entry of a business have been reduced by internet access. At one time entrepreneurs had to rent, have stock and make advertising. It is common to today find business initiating with simply a smartphone and a social media account.

Take into account the emergence of social trade. Africa is no exception, as anyone selling clothes, catering, or any other products relies on WhatsApp, Instagram, and Facebook. They put pictures, order and deliver through chat. There is no need of a site. It does not require any costly advertising. The platform gives the inbuilt customers and interfaces familiarity.

The result of this freedom of entry has been entrepreneurial bomb. The youth, especially, are opening businesses at an unprecedented pace. They are not awaiting the formal employment. They are pioneering their opportunities. Although not all ventures are successful, the sheer fact of the new businesses creates the economic forces, employment and innovation.

Linking Farmers with Markets.

In Africa, agriculture continues to be the mainstay of most economies, with most of the people being employed in the sector in countries such as Nigeria, Ethiopia and Tanzania. The access to the internet is changing the way farmers work.

The first advantage is the most immediate that is information. The farmers will be able to check the market price even online and select where to sell their produce. They are able to get access to weather prediction to schedule planting and harvesting. They get to know about new farming skills, pest management, and types of crops. This fact positively affects productivity and income.

Even more sophisticated applications are coming up. The digital platforms help to increase the contact with buyers and farmers without intermediaries, who earn huge profits. There are platforms that offer farmers the access even to credit where they can buy the seed and fertiliser before the growing season goes into effect. There are others that provide crop insurance that can be done via a mobile phone.

The influence is great. Digital tool users within the agricultural industry continue to report high incomes, reduced post-harvest losses, and resilience to innovations such as drought or price shocks. Access to Internet does not supplant the traditional farming knowledge, it supplements it.

Increasing Access to Education.

The economic growth is pegged on human resources. Employees have to possess the skills that are appreciated by employers. Students should be educated in a way that will equip them with the modern economy. With the growth of internet connectivity, there is increased educational opportunities at all levels.

Online learning materials supplement underfunded schools where students have to study in the rural areas. A village child can find a wealth of free education materials on the internet. Complex issues are explained by video lessons. Immediate feedback is given by the use of practice quizzes. Learners are united to the teachers and other learners through discussion forums.

In adult cases, web based learning provides them with a gateway to new jobs. Cousera, edX, and Udemy offer low-priced, self-paced education. An employee may learn to code during the evenings, to market during the weekends or learn to project manage during lunch time. These are skills that can be directly translated into greater employment and improved earnings.

It has especially had an effect on women. Women have restricted access to formal education in most communities through the cultural norms. Online study which can be accessed at home through a mobile phone, avoids these obstacles. Women who would never be able to go to a university can get certificates, develop skills and become business owners.

Improving Healthcare Delivery

Healthy societies are more prolific. The availability of the internet is enhancing healthcare delivery in Africa and directly affecting the economy.

Telemedicine enables the remote patients to meet specialists without having to travel long distances. A rural clinic patient can connect through video conference with the doctor in a city hospital. The consultation not only saves money, time but even lives. In case of chronic illnesses such as diabetes or hypertension, remote continuous monitoring keeps people active and healthy.

To the healthcare worker, access to the internet offers training, information and support. A nurse working in a small clinic will be able to search about treatment protocols, discuss them with colleagues, or find continuing education courses. This enhances the quality of care and minimises medical errors.

It is also beneficial to the supply chain management. Electronic systems monitor medicine stocks, forecast demand and streamline deliveries. Stockouts are less frequent. Out-of-date drugs become fewer. The system is more efficient and cost saving as it can be reinvested into patient care.

Digital Digital Financial Inclusion.

One of the most impressive success stories in Africa has been the emergence of mobile money. Financial service providers such as M-Pesa,MTN Mobile Money and Airtel Money have provided financial services to millions of the previously bankless population.

Economic growth is enhanced in a number of ways brought about by financial inclusion. First, it enables individuals to save securely. Money kept in a house can be stolen, lost or even destroyed. A digital wallet contains money that is safeguarded. Second, it facilitates transactions. Through their phone, a business owner can make payments to suppliers, accept payments and manage their cash flow in totality. Third, it offers credit facilities. Mobile money providers are able to evaluate the creditworthiness by the history of the transactions and provide small loans.

The effect on small businesses is immense. A market vendor is one that receives mobile payment and has more customers. A trader that can acquire a small loan will purchase more inventory. When a farmer receives payments electronically, he or she does not have to risk carrying hefty sums of money. These advantages grow with time and create more fortified and better communities.

The Government Role.

Governments play an important role to extend internet penetration and ensure that it has the maximum economic effects. Infrastructure investment contributes the most. The capital needed to develop the backbone networks, then undersea cables and tower infrastructures which enable connectivity cannot be fulfilled entirely by the private companies themselves.

Network expansion in rural locations has been funded on a small charge applied to the use of cell phones through universal service funds. Fibre networks have been developed between government offices, schools and hospitals through public-private partnership projects. Reform in regulation has lowered the expenses of introducing new infrastructure.

Other than infrastructure, governments can contribute to the training of digital skills, consumer protection against fraud and providing an enabling environment to e-commerce and other digital services. Internet access can benefit the economy by promoting competition, data privacy, and technology advancement in the face of policies that promote these aspects.

Challenges That Remain

Even with the advancement, there are still great challenges. Not everyone has access to the Internet. The countryside is in a disadvantageous situation compared to cities. The online gender gap is less amongst women compared to men. The price of gadgets, especially smartphones, is still unaffordable to a larger audience.

Another challenge is quality of service. Speed can be slow and connections unreliable even where there is coverage. Service is disrupted by power outages. Although the cost of data is declining, it continues to eat up a big chunk of the low income earners.

Lastly is digital literacy. Being connected will do no good when people fail to utilize it properly. Lots of potential users should not be taken to the start with the simple set of skills to navigate the web, use applications, and take care of scams. User interfaces and training programmes are necessary.

Looking Ahead

There is no automatic relationship between economic growth and access to internet. Connection in itself does not bring prosperity. The question is what the individuals make out of that relationship.

The best-officiated economies of internet growth are those which have as well invested in education, endorsed entrepreneurship, and established a regulatory atmosphere that fosters inventiveness. One tool is technology. It will have an effect according to its usage.

The future of Africa is bright but not definite. The basis of connectivity is being established. The challenge now is to work on that base. Filling it with more local languages, more services offered to meet local demands, more training to local users. Here are the subsequent measures towards transforming internet connectivity into lasting economic development.

The facts are evident. Opportunities are availed when individuals go online. They study, work and construct. And they open business, employ people, and provide services. They uplift themselves and their societies. Economic growth is not a mere certainty of the Internet access, but its lack raises the costs of development considerably. The Africans have achieved a lot. The finest might be in wait.

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