Digital technologies

Digital technologies are key to economic diversification

SDG indicators
Goal 9: Industry, innovation and infrastructure

SDG target 9.c: Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in LDCs by 2020
SDG indicator 9.c.1: Proportion of population covered by a mobile network, by technology (Tier I)

Digitalization has changed the way people produce, consume, trade and live. Narrowing the technological gap and closing the digital divide between and within developed and developing countries provides opportunities for improving incomes and resilience, as well as reducing the vulnerabilities, of the poorest – and in particular of women and youth. Past and ongoing crises have highlighted the role of digital technologies in diversifying economies and building resilient systems that are open, inclusive, and secure and benefit everyone.

It all starts with getting people and businesses online

51% of world population covered by 5G mobile networks in 2024.

To be able to engage in and benefit from the digital economy and digital trade, individuals and businesses must first be online. This means being covered by Internet infrastructure that is sufficiently fast and reliable, and furthermore by electricity infrastructure to power digital devices. By 2024, 92% of world population was covered by 4G mobile networks, double the share in 2015 -—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
. However, there is considerable variation in 4G deployment between regions; while 4G is available to all in Eastern Asia and in Europe, only 54% of people in sub-Saharan Africa live in areas covered by 4G networks (map 1). Furthermore, mobile networks continue to evolve, with 4G being superseded by 5G technology which covered 51% of the global population as of 2024 -—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
. The widest roll-out was in Europe, where 72% of the population was covered, followed by the Americas (63%) and the Asia-Pacific (62%). However, deployment has barely begun in many countries.

Map 1. More than half of the world’s population now covered by 5G, but deployment lags in some regions Map 1. More than half of the world’s population now covered by 5G, but deployment lags in some regions
Percentage of population covered by mobile network, by technology, 2023 (SDG 9.c.1)

Source: UNCTAD calculations based on -—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
.

Coverage alone is not enough

While 96% of the world population is covered by mobile broadband (3G or above) networks, many other factors create a gap between those who could access the Internet and those who do use it. In 2024, two thirds of the world’s population used the Internet, leaving 2.6 billion people offline. Furthermore, while almost all people in developed countries are online, only 35% of those in the least developed countries (LDCs) use the Internet -—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
.

In 2024, the price of a mobile broadband subscription was equivalent to 5% of per capita GNI in LDCs.

One key reason is that the costs involved in getting online can be prohibitive for many. In 2024, the annual cost of a mobile broadband subscription was equivalent to 4.6% of per capita GNI in LDCs while a fixed broadband subscription equated to one sixth of GNI per capita -—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
– both exhibiting a slight decrease compared to previous year. Given disparities in income distribution within countries, for many people connectivity will be even less affordable. Furthermore, the digital devices required to access the Internet, such as smartphones, also need to be available and affordable.

Additionally, the skills required to use the Internet must be sufficiently widespread and available amongst the population, and people need to be aware of the opportunities of the digital economy and of digital trade, especially those working at firms that stand to benefit from digital transformation. Finally, the speed provided by Internet connections and fixed line technologies, such as the fixed broadband, matters -—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
.

Digital technologies offer a vital opportunity for economic diversification

Digitally deliverable services account for over half of all services exports worldwide.

Digital technologies, including the Internet, underpin e-commerce – in which buyers place and sellers receive orders online. Additionally, they enable instantaneous remote delivery of services directly into businesses and homes. Both digitally ordered and digitally delivered transactions increasingly take place across borders. The possibility of engaging in such digital trade offers new opportunities for the diversification of developing economies. Digitally deliverable services now account for over half of all services exports worldwide. Their share grew especially during the disruptions of the COVID-19 pandemic, then declined as exports of other services recovered, and stabilized in 2023, at a higher level than before the pandemic (figure 1).

Figure 1. Digitally deliverable services have increased their share in total services trade over the last 5 years Figure 1. Digitally deliverable services have increased their share in total services trade over the last 5 years
Exports of digitally deliverable services as percentage of total services exports

Source: UNCTADstat -—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
.

Note: Digitally deliverable services are services that can be delivered remotely through computer networks. The figures in the graph cover: insurance and pension services; financial services; charges for the use of intellectual property; telecommunications, computer and information services; other business services; and audio-visual and related services.

Seizing the opportunities of digital trade requires not only investments in ICT connectivity but also actions to boost digital skills and awareness of the opportunities and risks associated with digital trade. Measures to facilitate digitally ordered goods transiting the border and regulatory actions to encourage digital payments, ensuring privacy and data protection, as well as the establishment of channels for recourse in case of loss or detriment related to digital trade, represent further enabling factors -—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
-—
– ‒
- –
—-
.

References

    Lorem ipsum dolor sit amet, consectetur adipiscing elit.
    Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.
    Lorem ipsum dolor sit amet, consectetur adipiscing elit.
    Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.
    Lorem ipsum dolor sit amet, consectetur adipiscing elit.
    Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.
    Lorem ipsum dolor sit amet, consectetur adipiscing elit.
    Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.
    Lorem ipsum dolor sit amet, consectetur adipiscing elit.
    Donec tincidunt vel mauris a dignissim. Curabitur sodales nunc id vestibulum tempor. Nunc tortor orci, sodales nec eros eget.