Between 2000 to 2019, global income per capita increased by USD 3,000, with mobile accounting for USD 300, or ten percent, of this gain. The resulting economic stimulus expanded the global economy by over USD 2.4 trillion.
The GSMA recently partnered with the World Bank to study the impact of mobile broadband coverage on poverty levels in Tanzania and Nigeria. In Tanzania, we found that households in areas covered by mobile broadband saw consumption rise between seven to eleven percent, while in Nigeria we found that mobile broadband coverage reduced the proportion of households in extreme poverty by four to seven percent. For working adults, access to mobile broadband coverage can mean access to new or different employment opportunities, positively impacting household consumption, and reducing poverty levels.
Mobile is also enabling financial inclusion for 1.6 billion people through mobile money services, allowing them to pay their bills, send money abroad, manage their savings and access social support. This is particularly powerful when it comes to women. Our research shows that women with access to mobile money become more financially included, economically independent and play a stronger role as financial decision makers, which in turn has a positive impact on their communities and the broader economy.
However, women in low- and middle-income countries are currently 28 percent less likely than men to own a mobile money account. This gender gap in mobile money account ownership and usage is a missed opportunity for stakeholders and must be acted upon.
Development finance institutions like Swedfund have an important role in poverty alleviation by contributing to a financial sector inclusive of both small and medium-sized businesses, women and people living in poverty.
Investing in infrastructure alone is insufficient to bridge the digital divide; we also need to address the barriers to usage, which include affordability of devices, digital literacy and skills, relevant local content, and safety and security concerns. Development finance institutions like Swedfund should invest in business models based on local needs and ensure local presence to gain deeper understanding of their markets.
It is vital that governments and the private sector work closely together, for an enabling policy and regulatory environment that is both investment-friendly and predictable.
Investing in the digitalisation of government agencies and services may also help expand the digital ecosystem. Digitalising public services can improve access, convenience, transparency and quality of life. Through digital identities more people will gain rights and access to essential services such as health care.
