Exploring the factors behind digitalization convergence and revealing Africa’s digital transformation journeys

Abstract

Global economies are transitioning from traditional agrarian models to technology-driven ones, focusing on sustainable growth. Historically, Africa has been slow to adopt digital technologies, lagging behind other regions. However, since the late 1990s, the continent has experienced significant growth in its telecommunications sector, driven by investments, market liberalization, and regulatory reforms. This has enabled Africa to catch up with global digital trends. This study examined the convergence among African economies and the factors influencing this process. The analysis is based on secondary panel data from 38 African countries, spanning the period from 1990 to 2023. For empirical analysis, the study employs the Phil-Sul (2007; 2009) and Panel Vector Error Correction Model (P-VECM) techniques. The findings indicate that African economies are converging, despite the digital divide within the region. To further promote this trend, the study recommends continued market liberalization and increased investment in digital infrastructure to accelerate digitalization efforts. This research contributes to the literature by providing new empirical evidence on the factors shaping Africa’s digitalization and convergence process.