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Information Communication Technology, Electricity Consumption and Economic Growth Nexus in Botswana

Year: 2025

Type: article

Abstract: When discussing economic growth, electricity consumption and information and communication technology are both crucial components. Effective resource allocation is made feasible by ICT, which raises demand and drives down prices. Electricity, on the other hand, is critical to modern life since it powers industries, technologies, and necessary services, improving living standards and facilitating social and economic growth. The study aims to assess how ICT, electricity consumption, and economic growth are related in Botswana. This study investigates whether there is a causal link between ICT, power use, and economic expansion. In order to assess the nexus relationship, the study used the autoregressive distributed lag model. The findings showed that ICT has a long-term beneficial impact on economic growth, while economic growth has a long-term negative impact on ICT. The study also demonstrated directional causality between electricity use and ICT. This implies that rising electricity consumption raises the need for electricity, which in turn raises ICT investment. It was discovered that Botswana's economic growth was negatively impacted by education. Long-term economic growth in Botswana is enhanced by a rise in industrial expansion. A two-way causal relationship between ICT and electricity use was also demonstrated; as electricity use rises, so does the demand for ICT investment, which in turn raises ICT investment. The study recommends that in the diversification thrust of Government of Botswana, electricity and ICT should be given priority since they can be catalyst for economic growth in the long run.

Source: International Journal of Energy Economics and Policy

DOI: 10.32479/ijeep.20462

Authors: Sanderson Abel, Leward Jeke, Henry Muleya, Robson Manenge, Pierre Le Roux

Institutions: Botswana University of Agriculture and Natural Resources, Nelson Mandela University, Lupane State University, Midlands State University

Language: English

Topic: Economic Growth and Development

Subfield: Information Systems

Field: Computer Science

Domain: Physical Sciences

SDGs: Industry, innovation and infrastructure, Affordable and clean energy, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $590