The internet helps low-income countries leapfrog development challenges

The internet has become a powerful driver of economic and social transformation worldwide. In developing countries, where traditional infrastructure often lags behind, internet access has the potential to bridge gaps, create opportunities and fuel innovation. By leveraging mobile technology and digital services, these nations can bypass – or ‘leapfrog’ – traditional services and conventional development barriers and accelerate progress in ways that were previously impossible.

Mobile connectivity and digital solutions help developing economies to leapfrog traditional infrastructure and... 

The transformative impact of the internet on developing countries has been enabled by the rapid expansion of mobile connectivity. Unlike developed nations, which built their internet infrastructure primarily on fixed-line networks, many emerging markets have gone straight to mobile technology. This has enabled widespread internet access without the need for costly and time-consuming fixed infrastructure development, bringing billions of previously unconnected people online.

...democratise access to essential services

Beyond connectivity, mobile technology has also facilitated providers to leapfrog offering traditional services. Mobile money, for instance, has revolutionised financial transactions in regions where banking services are limited. A prime example is M-Pesa in Kenya. This mobile-phone-based money transfer service has provided millions of users with financial inclusion through mobile-based payments and banking. Similarly, e-commerce platforms have enabled small businesses to reach national and even global markets without the need for physical storefronts. Telemedicine services are bridging gaps in healthcare, providing rural populations with access to medical advice and consultations that would otherwise be unavailable. 

...transform education and employment 

For many, the internet has opened doors to education, employment and personal development. Global online learning platforms such as Coursera and Khan Academy offer affordable education to millions. Digital job platforms and remote work opportunities allow skilled workers to engage in the global economy without the need to migrate. Social media and communication tools help strengthen personal and professional networks, fostering both community engagement and economic mobility.

...and strengthen retail commerce while driving economic growth

For businesses, the internet has expanded market reach and improved efficiency. Start-ups and small enterprises can use digital tools to market their products, access supply chains and streamline operations. E-commerce has thrived in many African and South-East Asian countries, allowing businesses to sell directly to consumers. Digital payment systems are helping to reduce the risks associated with cash transactions, making financial operations smoother and more secure. 

On a macroeconomic level, the internet has driven financial inclusion of otherwise unbanked citizens and overall economic growth. Governments in developing nations increasingly recognise the value of digital infrastructure to drive GDP growth, attract foreign investment and improve service delivery. The internet enables better governance through e-government initiatives, making bureaucratic processes more transparent and accessible. As digital skills spread, countries gain a more competitive workforce, which fuels economic growth.

Many potential users are excluded from mobile connectivity and digital solutions

However, challenges remain. Despite mobile broadband coverage reaching over 90% in some countries, and new low-Earth orbit (LEO) satellites now offering 100% coverage, adoption rates significantly lag behind. With data in some countries costing up to 20% of the average monthly income, and smartphones over half, many are financially excluded. Digital literacy prevents many first-time users from going online and maximising the benefits of internet access. Social norms and education gaps contribute to a digital gender divide, limiting many women and girls from benefitting from digital transformation. Additionally, regulatory and political barriers can also slow digital transformation, especially in countries with restrictive internet policies or a lack of competition in the telecoms sector. 

The internet is reshaping developing economies by enabling rapid technological progress and providing new opportunities for growth. By leapfrogging traditional infrastructure and embracing digital solutions, individuals, businesses and entire nations can unlock transformation. However, the barriers to adoption must be addressed for the benefits of digital transformation to be shared. With strategic investments and policies, the internet has the potential to be one of the most powerful tools for economic development in the twenty-first century.