The nexus between information and communication technology (ICT) and poverty status in South Africa

Abstract

Since 1994, South Africa has grappled with persistent poverty and inequality. In an effort to eradicate these social issues, the South African democratic government has implemented several policies. However, there has been little success. The advent of globalization and advancements in information and communication technologies (ICTs) present an opportunity for the South African government to bypass the traditional stages of development as suggested by the leapfrogging hypothesis. The purpose of this research article is to examine the nexus between ICTs and poverty status in South Africa. The significance of the study lies in its aim to provide empirical evidence that aligns with the social and economic realities of South Africa, ultimately informing the country’s ICT policy frameworks. The study employs time series data spanning from 1990 to 2021 and a quantitative methodology. Consequently, the study conducted the Granger causality tests and Johansen cointegration analysis to explore the nature of causality and establish the long-run equilibrium relationship between poverty and ICT. The empirical findings of the study uncovered a long-run equilibrium relationship between ICT use and poverty reduction in South Africa. Furthermore, the results indicate a unidirectional causal link whereby increased access to ICT tools led to a decrease in poverty levels.