Income inequality: economic growth nexus in Sub-Saharan Africa—Can the increasing prominence of ICT make a difference?

Inequality and economic growth are current worldwide concerns that align with U.N. SDGs 8 and 10, emphasizing the necessity of equitable economic growth and reducing inequality. The current study uses static and dynamic econometric models covering 2005–2020 for 42 Sub-Saharan African (SSA) nations to fill the research vacuum, highlighting the relationship between growth and inequality. In the SSA region, empirical results from the GMM models show that a 1% rise in income inequality reduces GDP growth by 0.47–0.31%. Growth in SSA is hindered by income inequality, but the growing ICT diffusion in the region mitigates this effect. Overall, the diffusion of ICT has lessened the influence of income disparity on economic growth. According to the Generalized Method of Moments estimates, a 1% increase in ICT diffusion in SSA will improve GDP growth by 1.42% and 1.01%, respectively. Consequently, the ICT-growth hypothesis is validated. These results imply that the sharp rise in ICT use can enhance SSA's economic performance. In order to achieve inclusive growth, policymakers should concentrate on reducing the digital gap by improving ICT infrastructure and access, encouraging competition in the ICT industry, and offering targeted assistance to low-income areas.