Information and Communications Technology and the Level of Income in Africa

The use of electronic equipment for storing, analysing, distributing or communicating information-popularly known as information and communications technology (ICT)-has been identified as a factor that drives income, economic growth and development. Because of this, several studies have been carried out to ascertain the effects of ICT on economic growth. However, such studies failed to examine whether real per capita income influences the effect of ICT on income level and whether the effect of ICT on income level differs among regions of African countries. This study, therefore, investigated the effect of ICT on income level. Specifically, it examined whether real per capita income influences the effect of ICT on income level and whether the effect of ICT on income level differs among the sub-regions of African countries. Thus, empirical models were estimated using the panel regression analysis with fixed-effect and random-effect estimators. The results show that ICT proxied by Fixed Telephone Subscription, Mobile Cellular Subscription, Internet Users, and Fixed Broadband Subscriptions affected income level in African countries except for Fixed Telephone Subscription and that real income per capita influenced the effect of mobile cellular subscription and internet usage on income level in Africa sub-regions. Furthermore, the study found that the effect of ICT on the level of income differed among African regions and that the effect was larger in Eastern, Southern and Northern African countries than the Middle and Western African countries. Therefore, authorities concerned should consider investment in ICT as a tool or mechanism for enhancing the level of income.