Sub Saharan Africa Research Paper
Journal of Economic Perspectives—Volume 24, Number 3—Summer 2010—Pages 207–232
Mobile Phones and
Economic Development in Africa
Jenny C. Aker and Isaac M. Mbiti
S
ub-Saharan Africa has some of the lowest levels of infrastructure investment in the world. Merely 29 percent of roads are paved, barely a quarter of the population has access to electricity, and there are fewer than three landlines available per 100 people (ITU, 2009; World Bank, 2009a). Yet access to and use of mobile telephony in sub-Saharan Africa has increased dramatically over the past decade. There are ten times as many mobile phones as landlines in sub-Saharan
Africa (ITU, 2009), and 60 percent of the population has mobile phone coverage.
Mobile phone subscriptions increased by 49 …show more content…
This paper first examines the evolution of mobile phone coverage and adoption in sub-Saharan Africa over the past decade. We then explore the main channels through which mobile phones can effect economic outcomes and appraise current evidence of its potential to improve economic development. We conclude with directions for future research and outline the necessary conditions for mobile phones to promote broader economic development in Africa.
Mobile Phone Coverage in Africa: What a Difference a Decade Makes
Mobile phone coverage in Africa has grown at staggering rates over the past decade. In 1999, only 10 percent of the African population had mobile phone coverage, primarily in North Africa (Algeria, Egypt, Libya, Morocco, and Tunisia) and South Africa (GSMA data for 2009).1 By 2008, 60 percent of the population
(477 million people) could get a signal, and an area of 11.2 million square kilometers had mobile phone coverage—equivalent to the United States and Argentina
1
For data on mobile phone coverage and adoption, we will be using data from the GSM Association, an association that represents the interests of the worldwide mobile communications
Mobile Phones and
Economic Development in Africa
Jenny C. Aker and Isaac M. Mbiti
S
ub-Saharan Africa has some of the lowest levels of infrastructure investment in the world. Merely 29 percent of roads are paved, barely a quarter of the population has access to electricity, and there are fewer than three landlines available per 100 people (ITU, 2009; World Bank, 2009a). Yet access to and use of mobile telephony in sub-Saharan Africa has increased dramatically over the past decade. There are ten times as many mobile phones as landlines in sub-Saharan
Africa (ITU, 2009), and 60 percent of the population has mobile phone coverage.
Mobile phone subscriptions increased by 49 …show more content…
This paper first examines the evolution of mobile phone coverage and adoption in sub-Saharan Africa over the past decade. We then explore the main channels through which mobile phones can effect economic outcomes and appraise current evidence of its potential to improve economic development. We conclude with directions for future research and outline the necessary conditions for mobile phones to promote broader economic development in Africa.
Mobile Phone Coverage in Africa: What a Difference a Decade Makes
Mobile phone coverage in Africa has grown at staggering rates over the past decade. In 1999, only 10 percent of the African population had mobile phone coverage, primarily in North Africa (Algeria, Egypt, Libya, Morocco, and Tunisia) and South Africa (GSMA data for 2009).1 By 2008, 60 percent of the population
(477 million people) could get a signal, and an area of 11.2 million square kilometers had mobile phone coverage—equivalent to the United States and Argentina
1
For data on mobile phone coverage and adoption, we will be using data from the GSM Association, an association that represents the interests of the worldwide mobile communications