Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Relevance of Technological Development To Economic Growth in Africa: A Position Paper

Akinpelumi Isaac Soledayo PhD, Aribatise Adekunle PhD, Emmanuel Olajide Adebayo, Ph. D.

Abstract

Technological development is increasingly pivotal to Africa's aspirations for productivity, growth, structural transformation, and global competitiveness. This position paper argues that technology should be viewed as an essential component of Africa's economic-growth strategy. Technology can enhance productivity, slash transaction costs, expand market accessibility, back up financial inclusion and create novel economic opportunities. However, its merits depend on complementary investments in human capital, digital infrastructure, energy, research and development, finance and effective institutions. Recent evidence shows that digital infrastructure promotes innovation in Africa, particularly when supported by human capital (Osei, 2024), while technological innovation and human capital jointly contribute to industrial productivity and competitiveness (Awode & Oduola, 2024). The paper examines the major technological opportunities and impediments shaping Africa's development, including digitalisation, artificial intelligence, automation, fintech, smart agriculture, digital health and emerging mobility. It further highlights continuous challenges such as insufficient infrastructure, unreliable energy, limited digital skills, weak research capacity, financing constraints and institutional gaps. The paper argues that addressing these constraints needs coordinated policies that join technological development with education, industrialisation, entrepreneurship and inclusive economic transformation. Africa must therefore move beyond technology consumption towards technology adaptation, production and innovation. Empowering local technological capabilities and regional cooperation is necessary for ensuring that technological progress result in sustainable, inclusive and broad-based economic growth across the continent.

Keywords

DigitalisationInnovation InteroperabilityProductivityTechnologyTransformation

References

Adjei-Banuah, N. Y., Ismaguel, A. M., Amarteyfio, K. N. A. A., Bondzie, E. P. K., Ouedraogo, J. C. R. P., Agyepong, I. A., Diarra, A., Mirzoev, T., Owusu-Ansah, A., & McKee, M. (2026). Current and potential uses of drones in healthcare delivery in sub-Saharan Africa: A rapid scoping review. Global Health Action, 19(1), 2719410. https://doi.org/10.1080/16549716.2026.2719410 African Union. (2024). Continental artificial intelligence strategy. African Union Commission. https://au.int/en/documents/20240809/continental-artificial-intelligence-strategy African Union. (2025). Science, technology and innovation strategy for Africa 2034 (STISA- 2034). African Union Commission. https://au.int/en/documents/20250718/science- technology-and-innovation-strategy-africa-stisa-2034 Agbeyangi, A. O., & Lukose, J. M. (2025). Telemedicine adoption and prospects in Sub-Sahara Africa: A systematic review with a focus on South Africa, Kenya, and Nigeria. Healthcare, 13(7), 762. https://doi.org/10.3390/healthcare13070762 Ahmad, A. H., Green, C. J., Jiang, F., & Murinde, V. (2023). Mobile money, ICT, financial inclusion and growth: How different is Africa? Economic Modelling, 121, 106220. https://doi.org/10.1016/j.econmod.2023.106220 Ajayi, S. A., et al. (2021). Transport inequalities and the adoption of intelligent transportation systems in Africa: A research landscape. Sustainability, 13(22), 12891. Attaran, M. (2022). Blockchain technology in healthcare: Challenges and opportunities. International Journal of Healthcare Management, 15(1), 70–83. https://doi.org/10.1080/20479700.2020.1843887 Avom, D., Bangaké, C., & Ndoya, H. (2023). Do financial innovations improve financial inclusion? Evidence from mobile money adoption in Africa. Technological Forecasting and Social Change, 190, 122451. https://doi.org/10.1016/j.techfore.2023.122451 Awode, S. S., & Oduola, M. O. (2024). The interplay between technological innovation and human capital development in driving industrial productivity and competitiveness in Africa. Journal of Economics and Development. https://doi.org/10.1108/JED-03-2024-0079 Bokhari, H., & Awuni, E. T. (2024). Digital inequalities in North Africa: Examining employment and socioeconomic well-being in Morocco and Tunisia. Convergence: The International Journal of Research into New Media Technologies, 30(3). https://doi.org/10.1177/13548565231209673 Dah, D., Zahonogo, P., & Kaboré, P. F. (2025). Effects of the digital economy on economic growth in Africa: The role of human capital. Cogent Economics & Finance, 13(1), 2525485. https://doi.org/10.1080/23322039.2025.2525485 Degoot, A., Koné, I., Baichoo, S., Ngungu, M., Liku, N., Kumuthini, J., Nakatumba-Nabende, J., Khomh, F., & Bah, B. (2025). Health data issues in Africa: Time for digitization, standardization and harmonization. Nature Communications, 16, 5694. https://doi.org/10.1038/s41467-025-61104-6 Diao, X., Ellis, M., McMillan, M., & Rodrik, D. (2024). Manufacturing in structural change in Africa. World Development, 180, 106542. Dzisi, E., Obeng, D. A., Tuffour, Y. A., & Ackaah, W. (2023). Digitalization of the paratransit using mobility as a service: What are the adoption intentions of operators and operator unions in Ghana? Research in Transportation Business & Management, 47, 100968. https://doi.org/10.1016/j.rtbm.2023.100968 Food and Agriculture Organization of the United Nations. (2026, February 2). Mechanizing Africa’s farms won’t work unless we do it differently. Gicha, B. B., Tufa, L. T., & Lee, J. (2024). The electric vehicle revolution in Sub-Saharan Africa: Trends, challenges, and opportunities. Energy Strategy Reviews, 53, 101384. Girollet, D. (2024). Digital divides among microenterprises: Evidence from sub-Saharan Africa. Journal of International Development, 36(2), 1350–1380. https://doi.org/10.1002/jid.3860 Haula, K., & Agbozo, E. (2020). A systematic review on unmanned aerial vehicles in Sub-Saharan Africa: A socio-technical perspective. Technology in Society, 63, 101357. https://doi.org/10.1016/j.techsoc.2020.101357 Heß, P., Janssen, S., & Leber, U. (2023). The effect of automation technology on workers’ training participation. Economics of Education Review, 96, 102438. Hötte, K., Somers, M., & Theodorakopoulos, A. (2023). Technology and jobs: A systematic literature review. Technological Forecasting and Social Change, 194, 122750. International Telecommunication Union. (2025). State of digital development and trends in the Africa region: Challenges and opportunities. ITU. Jieutsa, L., Gbaguidi, I., Nadifi, W., & Koseki, S. (2024). Deployment of digital technologies in African cities: Emerging issues and policy recommendations for local governments. Data & Policy Kalyani, L. K. (2024). The role of technology in education: Enhancing learning outcomes and 21st century skills. International journal of scientific research in modern science and technology, 3(4), 05-10. Kasongo, A., & Makamu, T. (2024). Innovation and economic growth: An empirical analysis for African countries. African Journal of Science, Technology, Innovation and Development, 16(6), 751–760. https://doi.org/10.1080/20421338.2024.2382612 Karacuka, M., Myovella, G., & Haucap, J. (2024). Productivity paradox in Africa: Does digitalization foster labor productivity in African economies? Journal of the Knowledge Economy, 16, 8374–8393. Ketchiwou, G. F., & Ngulube, P. (2023). Developing skills for the Fourth Industrial Revolution in developing economies: Drawing from selected African countries. Africa Insight, 53(2). Koo, M., & Kim, C. S. (2023). The impact of digital transformation on financial inclusion: Through the case of mobile money account in Senegal. Journal of Global Area Studies, 41(3), 259–286. https://doi.org/10.29159/KJAS.41.3.259 Luke, R., Mageto, J., Twinomurinzi, H., Bokaba, T., & Mhlongo, S. (2025). Smart mobility in Africa: Where are we now? Cities, 166, 106212. https://doi.org/10.1016/j.cities.2025.106212. Mamuye, A., Nigatu, A. M., Chanyalew, M. A., Amor, L. B., Loukil, S., Moyo, C., ... & Tilahun, B. (2023). Facilitators and barriers to the sustainability of eHealth solutions in low-and middle-income countries: descriptive exploratory study. JMIR Formative Research, 7, e41487. McMillan, M., & Zeufack, A. (2022). Labor productivity growth and industrialization in Africa. Journal of Economic Perspectives, 36(1), 3–32. Mienye, I. D., & Jere, N. (2024). Artificial intelligence and sustainable development in Africa: A comprehensive review. Machine Learning with Applications, 18, 100591. https://doi.org/10.1016/j.mlwa.2024.100591 Mlachila, M., et al. (2023). Mobile money, ICT, financial inclusion and growth: How different is Africa? Economic Modelling, 121, 106220. https://doi.org/10.1016/j.econmod.2023.106220 Nyaaba, A. A., & Ayamga, M. (2021). Intricacies of medical drones in healthcare delivery: Implications for Africa. Technology in Society, 66, 101624. https://doi.org/10.1016/j.techsoc.2021.101624 OECD (2023) OECD Employment Outlook 2023: Artificial Intelligence and the Labour Market. Paris: OECD Publishing. https://doi.org/10.1787/08785bba-en. Ofoegbu, E. O. (2023). Autonomous vehicles: Theoretical and practical challenges for efficient and inclusive transport in Africa. Interdisciplinary Description of Complex Systems, 21(1), 41–51. https://doi.org/10.7906/indecs.21.1.4. Osabutey, E. L. C., & Jackson, T. (2024). Mobile money and financial inclusion in Africa: Emerging themes, challenges and policy implications. Technological Forecasting and Social Change, 202, 123339. https://doi.org/10.1016/j.techfore.2024.123339 Osei, D. B. (2024). Digital infrastructure and innovation in Africa: Does human capital mediate the effect? Telematics and Informatics, 89, 102111. https://doi.org/10.1016/j.tele.2024.102111 Oshomoji, O. I., Ajiroba, J. O., Semudara, S. O., et al. (2024). Tele-rehabilitation in African rural areas: A systematic review. Bulletin of Faculty of Physical Therapy, 29, 89. https://doi.org/10.1186/s43161-024-00256-w Pitan, O. S., & Muller, C. (2023). Assessment of strategies for preparing graduates for the disruptive workplace: Evidence from Nigeria and South Africa. Journal of Teaching and Learning for Graduate Employability, 14(1). https://doi.org/10.21153/jtlge2023vol14no1art1576 Saba, C. S., & Ngepah, N. (2024). The impact of artificial intelligence (AI) on employment and economic growth in BRICS: Does the moderating role of governance matter? Research in Globalization, 8, 100213. https://doi.org/10.1016/j.resglo.2024.100213 Senou, M. M., & Houensou, D. A. (2024). From expanding financial services to tackling poverty in West African Economic and Monetary Union: The accelerating role of mobile money. Journal of International Development, 36(3), 1707–1737. https://doi.org/10.1002/jid.3881 Sié, K. J. F. (2023). Industrial policy and labour productivity growth in Africa: Does the technology choice matter? Journal of Economic Structures, 12, 10. Sihite, M., Sardjana Orba Manullang, & Budi Sulistiyo Nugroho (2021). Relevance of mastery of information systems skills and success of business management in the digital age: a systematic review. International journal of social sciences and humanities. Sodokin, K., & Koriko, M. (2022). Digital transformation, banking stability, and financial inclusion in Sub-Saharan Africa. Strategic Change, 31, 493– 504.https://doi.org/10.1002/jsc.2531 Sogbe, E., Susilawati, S., & Currie, G. (2026). Imagining Mobility-as-a-Service futures in urban Ghana: How service features, demographics, and travel behaviour shape user intentions. Research in Transportation Business & Management, 65, 101593. https://doi.org/10.1016/j.rtbm.2025.101593 Sovacool, B. K., Daniels, C., & AbdulRafiu, A. (2022). Transitioning to electrified, automated and shared mobility in an African context: A comparative review of Johannesburg, Kigali, Lagos and Nairobi. Journal of Transport Geography, 98, 103256. United Nations Economic Commission for Africa. (2026). African Union STI Week 2026: ECA champions Africa's innovation future through STISA-2034. UNECA. Vudathaneni, V. K. P., Lanke, R. B., Mudaliyar, M. C., Movva, K. V., Kalluri, L. M., Boyapati, R., & krishna prasad Vudathaneni, V. (2024). The impact of telemedicine and remote patient monitoring on healthcare delivery: a comprehensive evaluation. Cureus, 16(3). Vurayai, S. (2024). Imagining digital capability in Southern African higher education. African Journal of Development Studies, 14(3). Wang, C., Chen, X., Yu, T., Liu, Y., & Jing, Y. (2024). Education reform and change driven by digital technology: A bibliometric study from a global perspective. Humanities and Social Sciences Communications, 11, Article 256. https://doi.org/10.1057/s41599-024-02717- Wezel, T., & Ree, J. J. (2023). Nigeria—Fostering financial inclusion through digital financial services. International Monetary Fund. https://doi.org/10.5089/9798400237195.018 World Economic Forum. (2025). The Future of Jobs Report 2025. World Economic Forum.

More Articles from INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT