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Abstract

The purpose of this study is twofold: First, to investigate the unconditional impact of gender inclusion on Africa’s structural transformation. Second, to investigate the role of ICT diffusion in moderating the impact of gender inclusion on Africa’s structural transformation. The analysis focuses on 48 African countries, utilizing data from 2010 to 2023. The Generalized Method of Moments (GMM) is employed as the baseline estimation technique, with the Driscoll-Kraay Fixed Effect regression adopted as a robustness check. To enhance policy relevance, gender inclusion is measured using indicators like female labor force participation, female political representation, female self-employment, and female employment. ICT diffusion is examined in terms of access, usage, and skills. The estimation strategy is designed to interact with the various components of ICT diffusion with gender inclusion indicators, to positively influence Africa’s structural transformation. The study finds that, although gender inclusion has an unconditional negative impact on Africa’s structural transformation, ICT diffusion serves as a positive moderating factor, mitigating this adverse effect. Specifically, the ICT diffusion thresholds required to offset the negative impact of gender inclusion on structural transformation are as follows: for manufacturing value-added, 8.23%–11.33% for ICT usage, 7.50%–11.67% for ICT access, and 1.89% for overall ICT diffusion; for industrial value added, 6.78%–13.18% for ICT usage and 6.67% for ICT access. The policy implications of these findings are discussed in alignment with the African Union's Agenda 2063 and the Sustainable Development Goals.