Relevance of Technological Development To Economic Growth in Africa: A Position Paper

Technological development is increasingly pivotal to Africa's aspirations for productivity, growth, structural transformation, and global competitiveness. This position paper argues that technology should be viewed as an essential component of Africa's economic-growth strategy. Technology can enhance productivity, slash transaction costs, expand market accessibility, back up financial inclusion and create novel economic opportunities. However, its merits depend on complementary investments in human capital, digital infrastructure, energy, research and development, finance and effective institutions. Recent evidence shows that digital infrastructure promotes innovation in Africa, particularly when supported by human capital (Osei, 2024), while technological innovation and human capital jointly contribute to industrial productivity and competitiveness (Awode & Oduola, 2024). The paper examines the major technological opportunities and impediments shaping Africa's development, including digitalisation, artificial intelligence, automation, fintech, smart agriculture, digital health and emerging mobility. It further highlights continuous challenges such as insufficient infrastructure, unreliable energy, limited digital skills, weak research capacity, financing constraints and institutional gaps. The paper argues that addressing these constraints needs coordinated policies that join technological development with education, industrialisation, entrepreneurship and inclusive economic transformation. Africa must therefore move beyond technology consumption towards technology adaptation, production and innovation. Empowering local technological capabilities and regional cooperation is necessary for ensuring that technological progress result in sustainable, inclusive and broad-based economic growth across the continent.