Published Paper


The Impact of Telecommunication Infrastructure on Financial Development in Sub-Saharan Africa

1Christian Uchechukwu Okomma; 2J.U.J Onwumere; 3Obiamaka P. Egbo
1,2,3 Department of Banking and Finance, University of Nigeria Enugu campus
Page: 1142-1157
Published on: 2026 March

Abstract

This study examines the relationship between telecommunication infrastructure and financial development in Sub-Saharan Africa (SSA) using panel data from 25 countries over the period 2000–2024. Employing Panel Least Squares (PLS) estimation and Pedronicointegration tests, the analysis reveals that mobile telephone density and fixed internet broadband density exert significant positive effects on financial development, while fixed telephone density shows no significant impact. The aggregate measure of telephone and broadband density also demonstrates a positive significant relationship with financial development. Cointegration tests confirm a long-run equilibrium relationship between ICT infrastructure and financial development. These findings underscore the transformative potential of modern digital infrastructure in fostering financial inclusion and deepening financial markets across the region. The study recommends prioritizing investments in mobile networks and broadband infrastructure while redirecting resources away from obsolete fixed-line systems.

 

PDF