Telecom Connectivity as Economic Infrastructure: Assessing the Impact of Mobile Broadband Expansion on SME Productivity and Market Participation in Africa

Purpose: In this article, the authors examine the aspect of telecom connectivity as a constituent of the economic infrastructure of a country. They also examine the role of the growth of mobile broadband connectivity in the improvement of the productivity of small and medium-sized enterprises (SMEs) in Africa. The authors have attempted to move beyond the ‘access-based’ discourses to examine the role of telecom infrastructure as a system of production, which improves the efficiency of transactions, the flow of information, the outreach of markets, and the improvement of the efficiency of enterprises. Materials and Methods: An integrative literature review approach has been used as the research design. The authors have used literature review as the research approach, where the literature reviewed includes the findings of studies, reports, and publications on digital infrastructure, broadband, SMEs, productivity, and inclusive growth in Africa. Findings: The literature review reveals the following findings: mobile broadband development increases the productivity of SMEs through improved communication speed, digital payment systems, reduced information asymmetry, innovation, and improved access to both input and output markets. In addition, the literature reveals that digital communication has a positive influence on the innovation and labor productivity of micro, small, and medium-sized enterprises in Africa, whereas the development of ICT infrastructure promotes inclusive growth as well as the economic participation of the broader economy. Implications to Theory, Practice, and Policy: The study draws on the theory of infrastructure-led development, the diffusion of innovation theory, and transaction cost economics. Theoretically, the study supports the argument of infrastructure-led development theory, which holds that telecom infrastructure should be viewed as a productive economic asset rather than a mere service used for communication. In practice, the findings of the literature review suggest that the highest benefits of mobile broadband development accrue to SMEs when the development of broadband infrastructure is complemented with digital skills, digital payment systems, as well as the development of the broader business environment. In conclusion, the study recommends that the development of mobile broadband infrastructure should be viewed as a strategic economic infrastructure, whereas the development of telecom infrastructure should be aligned with the development of SMEs, digital skills, as well as the broader market