Information Technology (IT) and Business: Two Unavoidable Paths to Africa's Future

Abstract

The role of information technology (IT) and business in the socio-economic development of countries on the African continent; and in the world at large, cannot be overemphasized. IT usage is believed to have undergone rapid and massive growth since its introduction several years ago; and remains the leading source of repository information. However, effective adaption and implementation of information technology along with business by most African economies has been marred by a number of factors. The purpose of this research was to examine how African economies could harness information technology and business resources at their disposal to accelerate development and growth of the continent. The quantitative approach to scientific inquiry was applied to the current research. Specifically, a cross-sectional design was adapted and used in the study. This allowed the researchers to gather relevant research data over a specific period of time. Data required for the research were obtained mainly from secondary sources including text books, peer-reviewed articles published in journals, research papers, newspaper publications; Google Search Engine, Index Mundi, financial websites such as Tradingeconomics.com; and electronic databases of the World Bank and World Economic Outlook, among others. Annual data on Africa and World's total gross domestic products (GDPs) for the period 2008 through 2017; and data on percentage contribution of Africa to global GDP during the period were computed and used in the study. Regression models and descriptive statistics were used to describe the research variables; and to evaluate their behavior over the stated time frame in the African and global economies. Findings from the research revealed positive relationship between business and Africa's total GDP; positive relationship between IT and Africa's total GDP; and positive relationship between Africa's regional GDP contribution and World's total GDP during the period. The findings revealed Africa's regional GDP contribution accounts for about55.15% of the variation in World's total GDP. However, in real terms, Africa's regional GDP contribution to the World's GDP in 2017 was the least among six (6) sampled regions across the globe. The findings revealed the respective GDPs of the United Kingdom (UK) and France in 2017 were more than Africa's total GDP during the same period. Recommendation was made for various African leaders to ensure existing national laws or enactments related to investments in information technology by local and foreign investors are activated and implemented; and where necessary, reviewed to serve as an effective attractive tool to all investors. Leaders of African economies with less technological sophistry are entreated to tap into the sterling initiatives of Ghana's current political administration in digitization. Effective digitization of various sectors of African economies would facilitate the release of economic data in a timely manner to enhance accuracy in annual estimation of Africa's total GDP; and the latter's contribution to the World's total GDP. African leaders must formulate and implement policies through their respective central banks to transition from collateral based lending to performance based lending to young graduates from various tertiary institutions with crafty business ideas, but lack the financial muscle to transform those ideas into practicable and profitable business initiatives and ventures. Relatively advanced African economies should develop strategies and diplomatic ties that would accelerate economic development and growth of smaller and struggling economies in Africa. It is imperative for the various sub-regional bodies in Africa to strive to add "real” socio-economic meaning to their formation and presence.