The World Bank Group has launched a new digital strategy to expand internet access, reduce connectivity costs and promote job creation in developing countries. The initiative comes as African economies confront mounting pressure to provide employment for young people while managing limited public resources.
Announced on October 20, 2026, the strategy brings together the World Bank Group’s public financing, private investment and policy support. It focuses on expanding digital infrastructure, reducing the cost of smartphones and broadband, improving digital skills and preparing developing economies to benefit from artificial intelligence (AI).
For Africa, the initiative offers an opportunity to accelerate economic development without relying exclusively on traditional industrialisation. However, its success will depend on whether governments can convert internet access into productive businesses, better public services and sustainable employment.
Africa’s Digital Divide Is an Economic Problem
The scale of the challenge is clear. World Bank data show that only 23 percent of people in low-income countries used the internet in 2025, compared with 94 percent in high-income economies. In sub-Saharan Africa, internet use stood at approximately 36 percent.
These figures reveal a substantial gap in access to the digital economy. Businesses in well-connected economies can use cloud computing, digital payments, online marketplaces and automated services to improve productivity. Entrepreneurs without reliable internet struggle to access the same opportunities.
The problem extends beyond network coverage. The World Bank’s Digital Progress and Trends Report 2025 identifies persistent gaps in affordability and connection quality. Median internet speeds in low-income and lower-middle-income countries remained below 25 megabits per second in 2024, while high-income countries recorded a median of 143 megabits per second.
For African businesses, unreliable electricity, expensive data and costly devices compound these disadvantages. A small retailer may have access to a mobile network but lack the resources to maintain an online store. A rural student may live within network coverage but struggle to afford the smartphone and data required for digital learning.
The World Bank’s strategy recognises that connectivity must become affordable and useful before it can deliver broad economic benefits.
The Employment Crisis Behind the Strategy
The initiative also addresses an urgent demographic challenge. The World Bank estimates that 1.2 billion young people in developing countries will reach working age over the next 10 to 15 years. Their economies are projected to create approximately 420 million jobs over the same period.
This leaves a potential shortfall of roughly 780 million jobs.
Africa faces particular pressure because of its expanding working-age population and the limited capacity of many economies to generate formal employment at scale. Governments cannot solve this problem through public-sector recruitment alone. Traditional industries must expand, private investment must increase and new businesses must emerge.
Digital technology offers one route to higher productivity and wider economic participation.
World Bank President Ajay Banga said: “Digital technology can help countries create jobs and make scarce resources go further.”
He added that achieving this potential requires “a comprehensive approach, from reliable connectivity and affordable devices to digital skills and useful services.”
The distinction is important. Internet access alone will not create enough jobs to close the projected employment gap. The economic gains will depend on whether businesses use technology to expand production, reach new customers and develop services that generate income.
Affordable Internet Could Strengthen African Businesses
The first major opportunity lies in reducing the cost of connectivity.
The World Bank plans to support infrastructure development across international cables, national networks and connections serving homes, schools, hospitals and businesses. It also intends to encourage shared infrastructure, competition and private investment in underserved markets.
These measures could help African countries extend broadband services into rural communities and commercially neglected areas.
In Nigeria, for example, an affordable and reliable internet could help small businesses manage orders, advertise products, receive digital payments and communicate with customers outside their immediate communities. Farmers could access market prices, weather information and agricultural advice. Manufacturers could improve inventory management and coordinate supply chains.
Digital connectivity could also support regional trade under the African Continental Free Trade Area by helping businesses discover buyers, process transactions and manage cross-border commercial relationships.
However, the benefits will not emerge automatically. Governments must create conditions that encourage telecom operators and infrastructure providers to invest beyond major cities. Regulators must also promote competition and address excessive costs without undermining the financial sustainability of network operators.
Public funding and development finance can help attract private capital where commercial returns alone are insufficient.
Cheaper Smartphones Could Expand Economic Participation
The World Bank also plans to support efforts to lower the cost of entry-level smartphones and broadband services.
This is a crucial part of the strategy because network availability does not guarantee meaningful access. Many households cannot afford the devices needed to use online services.
Lower smartphone prices could help more Africans access digital banking, online education, telemedicine, government services and employment platforms. Affordable devices could also enable informal traders and small enterprises to participate in digital markets.
Partnerships with manufacturers, mobile operators, financial institutions and refurbishment businesses could widen access through lower prices and responsible instalment-payment arrangements.
Yet affordability requires more than cheaper hardware. Consumers must also pay for electricity, mobile data, repairs and software. Governments should therefore consider the total cost of digital participation when designing policies.
Digital inclusion programmes should prioritise low-income households, women, people with disabilities and rural communities that face additional barriers to access.
Without these safeguards, lower device prices could benefit urban consumers while leaving the most disadvantaged groups offline.
Artificial Intelligence Offers a Practical Route to Productivity
One of the most forward-looking elements of the World Bank strategy is its focus on practical applications of AI.
Rather than concentrating exclusively on expensive systems designed for large technology companies, the initiative promotes what the institution calls “small AI”. These tools address specific tasks and local needs.
For African farmers, AI applications could help identify crop diseases, improve farm management and provide agricultural advice. Health workers could use suitable tools to support routine assessments and administrative work. Small businesses could automate basic inventory management, customer support and financial record-keeping.
These applications could reduce operating costs and help businesses serve more customers without proportionate increases in staffing or expenditure.
AI could also expand opportunities for African software developers and technology entrepreneurs. Local companies that build tools for African languages, agricultural conditions and business practices could serve domestic markets and eventually sell their products internationally.
However, AI adoption requires reliable electricity, computing capacity, quality data and workers who understand how to use the technology. Poorly designed systems may produce inaccurate results, while excessive dependence on foreign platforms could leave African businesses vulnerable to rising prices and external commercial decisions.
Governments and technology companies should therefore support local innovation, responsible data governance and practical AI training.
Digital Public Services Could Reduce Economic Waste
The strategy also supports digital identification, payment systems and secure information-sharing to improve access to public and private services.
For African governments, these systems could reduce administrative delays, improve service delivery and make public programmes easier to access.
Digital payments can help businesses receive money more efficiently. Secure identification systems can simplify access to government services and financial products. Better information-sharing can help public agencies coordinate programmes and reduce duplication.
These improvements could generate economic benefits by lowering transaction costs for households, businesses and governments.
However, digitisation must not become an excuse to exclude people who lack smartphones, reliable internet or formal identification. Governments should retain accessible alternatives while expanding digital services.
Strong cybersecurity, privacy protections and transparent rules for handling personal information are equally necessary. Poorly protected systems could expose citizens to fraud, identity theft and unauthorised surveillance.
Africa Needs Investment Beyond Internet Cables
The World Bank’s digital strategy provides a framework for addressing several barriers at once. Its broader economic impact will depend on how effectively governments combine connectivity investment with education, electricity, business development and institutional reform.
The institution has also announced an AI Infrastructure and Readiness Initiative to help emerging economies access affordable computing capacity through shared, pay-as-you-go graphics processing unit infrastructure. The initiative will initially focus on Africa and Latin America, with Cassava Technologies and NVIDIA among its knowledge partners.
Shared computing infrastructure could help African startups and public institutions use AI without the expense of building and maintaining their own large data centres.
This approach could be particularly valuable for countries with limited fiscal resources. Instead of duplicating expensive infrastructure, governments and businesses could access computing services according to their needs.
Nevertheless, financing arrangements, pricing, technical capacity and long-term maintenance will determine whether such facilities deliver lasting value.
African governments should also invest in technical education, reliable power supplies, local research and stronger links between universities and industry.
Implementation Will Determine the Economic Returns
The World Bank’s initiative arrives at a time when developing countries face competing demands for public spending. Digital infrastructure must compete with investment needs in roads, healthcare, education, electricity and other essential services.
The strategy’s emphasis on attracting private investment is therefore important. However, private capital will not eliminate the need for effective regulation, public accountability and targeted support for underserved communities.
Governments should assess progress through measurable outcomes, including reductions in data costs, increases in internet use, improved connection quality, wider access to affordable devices and growth in digitally enabled employment.
They should also determine whether small businesses are becoming more productive and whether women and rural communities are gaining meaningful access to online opportunities.
The central question is not how many people can connect to the internet. It is whether connectivity helps them earn more, run better businesses and access essential services.
Conclusion: Turning Digital Access Into African Prosperity
The World Bank’s digital strategy offers developing countries an opportunity to make technology a more practical instrument of economic growth.
For Africa, an affordable internet, accessible smartphones, stronger digital skills and locally relevant AI applications could improve productivity, support entrepreneurship and expand access to markets. Digital public services could also reduce transaction costs and improve the delivery of essential programmes.
But technology cannot compensate for weak institutions, unreliable electricity or inadequate education. Nor can digital investment alone resolve the continent’s employment challenge.
The strongest results will come when African governments treat connectivity as productive economic infrastructure rather than an isolated technology project. That requires sustained investment, competitive markets, inclusive policies and clear accountability for results.
With 1.2 billion young people expected to enter the working age across developing countries over the next 10 to 15 years, the cost of failing to create economic opportunities will be considerable. The World Bank’s initiative provides a framework for action. Its real value will depend on whether countries turn digital access into productive work, competitive enterprises and higher living standards.
