The effect of information and communication technology on agricultural production: evidence from selected countries in East African Community

Abstract

The agricultural sector plays a pivotal role in contributing to the Gross Domestic Product of the East African Community (EAC) countries, while also serving as a significant source of employment. Ongoing efforts to enhance agricultural production in these countries include the utilization of Information and Communication Technology (ICT). The aim of this study, therefore, was to examine the effect of ICT on Agricultural Production, drawing evidence from three original countries in the East African Community, namely: Kenya, Uganda, and Tanzania, using data from 2000 to 2021.

To examine the mechanism in which ICT affects production, the study adopted a conceptual framework from Ugochukwu (2020). This framework demonstrated how ICT tools are adopted and utilized in the agricultural sector to influence production, in conjunction with socio-economic factors such as labor, capital, and education. The study utilized data sourced from the World Bank Development Indicators and the Food and Agricultural Organization. A static panel model, specifically the fixed effects model, was utilized to analyze how ICT and socio-economic factors affect agricultural production, using ICT indicators of mobile cellular subscription and internet usage.

The findings of the study revealed that mobile cellular subscription and internet usage had a positive significant effect on agricultural production. Other factors, such as gross fixed capital formation and employment in agriculture also had a positive effect on agricultural production. On the other hand, temperature change on land (as a measure of climate change) significantly and negatively affected agricultural production.

The study recommended that EAC governments can boost agricultural production by facilitating the widespread diffusion of mobile cellular and internet, especially in rural areas through expanded network coverage, affordable services, and collaboration with telecommunication companies to improve rural connectivity. This would enable better access to information by farmers, such as market data, ultimately improving farming practices, market access, and overall production.