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Building Economic Resilience through Digital Transformation in Sub-Saharan Africa

Author

Listed:
  • Awa Traoré

    (Dakar, Senegal)

  • Thierno Thioune

    (Dakar, Senegal)

  • Simplice A. Asongu

    (Johannesburg, South Africa)

Abstract

This article extends the existing literature by exploring the impact of digital technologies on economic resilience in terms of public debt and growth in Sub-Saharan Africa. Using a panel VAR (PVAR) model approach, the study analyzes a sample of 29 Sub-Saharan African countries over the period 2000–2021. The internet, although temporarily reducing GDP, promotes long-term investments through public debt, while mobile telephony directly stimulates economic growth by facilitating financial inclusion and attracting foreign direct investment (FDI). The study demonstrates that effective regulations and a strong institutional framework are essential to attract FDI and manage public debt. However, trade openness, while supporting FDI, has limited effects on digital technologies and may increase vulnerability to external shocks. To strengthen the region’s economic resilience, targeted investments in digital infrastructure, prudent public debt management, and initiatives to promote technological accessibility and training are necessary. These actions aim to stabilize the economy and enhance competitiveness in the face of global challenges.

Suggested Citation

  • Awa Traoré & Thierno Thioune & Simplice A. Asongu, 2026. "Building Economic Resilience through Digital Transformation in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 26/023, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:26/023
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    File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/23.Building-Economic-Resilience-through-Digital-Transformation-in-Sub-Saharan-Africa.pdf
    File Function: Revised version, 2026
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