Mobile Phones and Economic Development in Africa

This working paper by Jenny C. Aker and Isaac M. Mbiti for the Center for Global Development examines the growth of mobile phone technology over the past decade and considers its potential impacts upon quality of life in low-income countries, with a particular focus on sub-Saharan Africa. An overview of the patterns and determinants of mobile phone coverage in sub-Saharan Africa is first presented followed by a description of the characteristics of primary and secondary mobile phone adopters on the continent. The paper also discusses the channels through which mobile phone technology can impact development outcomes, both as a positive externality of the communication sector and as part of mobile phone-based development projects, and analyze existing evidence.

While current research suggests that mobile phone coverage and adoption have had positive impacts on agricultural and labor market efficiency and welfare in certain countries, the paper notes that the empirical evidence is still somewhat limited. The paper also argues that mobile phone technology cannot serve as the “silver bullet” for development in sub-Saharan Africa, and that careful impact evaluations of mobile phone development projects are required to better understand their impacts upon economic and social outcomes. The paper also notes the need for mobile phone technology to work in partnership with other public good provision and investment.

For more information and to view the working paper please click here.

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