Information and Communication Technology (ICT) Diffusion and Agricultural Sector Growth in Sub-Saharan Africa: Evidence from System GMM Estimation

Subject and purpose of work The study examines how Information and Communication Technology (ICT) diffusion influences agricultural value-added in 37 Sub-Saharan African countries from 2012 to 2022. It aims to identify which ICT components – internet use, broadband, mobile, and fixed telephone subscriptions – most effectively drive agricultural transformation and productivity. Materials and methods Using a two-step System Generalized Method of Moments (System GMM) estimator, the study addresses endogeneity, persistence, and unobserved heterogeneity in dynamic panel data. The model includes key ICT indicators and control variables such as gross fixed capital formation and natural resource rents, supported by diagnostic tests for validity and robustness. Results Findings show that internet use and fixed telephony positively influence agricultural value-added, while broadband and mobile subscriptions show negative effects, reflecting infrastructure and saturation challenges Conclusions ICT diffusion fosters agricultural transformation in SSA, contingent on digital literacy, infrastructure, and institutional readiness