ICT and agriculture in Sub-Saharan Africa: Effects and transmission channels

This study contributes to the extant literature on the nexus between information and communication technologies (ICTs) and agriculture. Despite increasing attention on the subject, existing studies are sparse on the channels through which ICTs affect the agricultural sector. We use a stochastic impact model extended to the population, affluence and technology regression model to assess both the impact and transmission of ICTs on agriculture in 18 sub-Saharan African countries. The empirical results show that ICT use measured by Internet, mobile and fixed-line telephone penetration boosts the agricultural sector enormously. In addition, the mediation analysis reveals that ICTs not only have a direct positive effect on agriculture but also a positive indirect effect through its impact on financial development and trade openness and a negative indirect effect through energy consumption. However, the total effect is positive and shows that ICTs are supporting the development of the agricultural sector in sub-Saharan Africa. To enhance the positive effects of ICTs on agriculture, governments should design policies to improve access to credit for the private sector, promote liberalization, and provide financial incentives for the development of green and less expensive agricultural technologies.