Internet Usage in African Countries

Internet usage in African countries:

Empirical study on the antecedents of internet usage in developing countries

Tilburg University

Abstract

This research first investigates the relationship between the gross national product and the amount of internet users (per 1000 people) in the 51 sample countries from Africa. It indicates that the outlier countries in this case, i.e. countries that have an extraordinary high amount (in this case the outliers were all above the best-fit line) of internet users compared to their GDP / capita, from the sample are Seychelles and Sao Tome and Principe.

After the investigation to find the outlier countries a short description of these countries is given, presenting the relevant data regarding these countries. Furthermore an investigation into the possible relevant factors affecting the number of internet users is done. These factors are found to be: country area, urbanization, trade, GDP composition by sector, education spending, literacy, and the business climate prevailing in the country.

This research showed that the main factors relating to the unusually high internet usage in these countries had some common elements as well as some country related factors. The main factors in both of the cases were found to be the relatively small country size, urbanization, and the fact that large part of their GDP comes from the service industry. Other common factor was found to be the generally open business climate in both of the countries. For Seychelles also amount of tourist arrivals and the international trade were found to have an impact on the high internet usage.

Table of contents

Chapter 1 - Introduction 4

1.1 Motivation of the research 4

1.2 Research goals and relevance 4

1.3 Problem definition 4

1.3.1 Research questions 4

1.4 Demarcations 5

1.5 Report Structure 5

Chapter 2 - Sample 6

2.1 Chosen Sample 6

2.2 Data gathering and the reliability of data 6

2.3 Sample characteristics 6

2.4 Finding outliers 7

Chapter 3 - Outlier Countries 8

3.1 Seychelles 8

3.1.1 Basic Information 8

3.1.2 Economy 8

3.1.3 Internet usage 9

3.1.4 People and education 9

3.1.5 Other Information 9

3.2 San Tome and Principe 9

3.2.1 Basic information 9

3.2.2 Economy 9

3.2.3 Internet usage 10

3.2.4 People and education 10

3.2.5 Other Information 10

Chapter 4 - Possible factors affecting internet usage 11

4.1 Country Area, rural vs. urban 11

4.2 Irregular or non-existent electricity supplies 11

4.3 Education Spending & Literacy Rate 11

4.4 Trade (exports/imports) 12

4.5 GDP composition by sector 12

4.6 Tourist Arrivals & FDI 13

4.7 General Business Climate 13

Chapter 5 - Analysis and discussion 14

5.1 Factors that influence the high internet

usage in Seychelles 14

5.2 Factors that influence the high internet

usage in Sao Tome and Principe 15

Chapter 6 - Conclusion 17

6.1 Conclusion 17

Appendices 20

Chapter 1 - Introduction

1.1 Motivation of the research

The internet age and the increased importance of internet communication technologies have changed the way business is done nowadays. Information search and communication through the internet have increased the possibilities of individuals and corporations to better interact with each other.

The presumed existence of the digital divide and higher usage of internet have been argued to be factors affecting the economic growth of countries (Espiritu, 2003, p. 450). Thus this makes it important to investigate the relationship of internet usage on the economic performance of the country and determine the antecedents that influence the internet usage. Internet, as we know it, has existed in mass usage only for 10-15 years.

The future implications of internet usage on the economic performance and development of a country are thus still to be seen. Developing countries with differing trends in internet usage may have different growth opportunities in the future and this makes it even more interesting to investigate trends in internet usage and analyze countries that at the moment deviate from common trend.

1.2 Research goals

In this paper we aim to research and investigate the internet usage in African countries and model it against their economic performance (Gross domestic product (GDP) / capita, to be more specific). We will then try to locate countries that do not fit into the common trend of internet usage, given their GDP/capita, and analyze the possible reasons behind this.

These factors will be discussed