The Least Developed Countries are falling behind on digital transformation — here’s what to do

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Ratnakar Adhikari, Executive Director, Enhanced Integrated Framework (EIF), Taffere Tesfachew, Member, UN Committee on Development Policy


  • 1.4 billion people worldwide live in the Least Developed Countries, but just 36% of them are connected online.
  • These countries risk falling behind on digital transformation, which could hold their economic and social progress back for decades.
  • A growing body of evidence shows how international funding, combined with efforts at the national level, can be used to expand internet access and close the digital divide.

Digital technology touches every aspect of human lives and all the UN Sustainable Development Goals (SDGs). While digital transformation can help the 45 Least Developed Countries (LDCs) to sidestep traditional development pathways, the real challenge is the growing digital divide between the LDCs and the rest of the world.

As richer parts of the world become increasingly adept at leveraging digital technology for value creation, the LDCs risk falling further behind.

In recognition of this dilemma, the 2030 Agenda set an ambitious target (SDG 9c) aimed at achieving “universal” and “affordable” access to the internet in the LDCs by 2020. The year 2020 has come and gone, but the target remains unmet, except for in Bangladesh and recently-graduated Bhutan. This is a clear signal to the LDCs and the international community to act urgently. Digital transformation in the LDCs is indispensable now more than ever before.

The opportunity of digital transformation

The LDCs have tremendous opportunities to expand access to affordable digital technologies. For example, in the manufacturing sector, many LDCs still use analogue technology for nearly 70% of the manufacturing process that could potentially be digitalized.

Also, most of the new frontier technologies that have the potential to fuel a green economic transformation are powered by digital technologies. As the total market value of these technologies is likely to increase from $1.5 trillion in 2020 to $9.5 trillion in 2030, the LDCs need to catch up fast, before the relatively narrow window closes for them.

Further, even in the social sector, the adoption of digital technology can help close the access gap. For example, the global telemedicine market, valued at $60.8 billion in 2022, is expected to reach $225 billion by 2030. Similarly, the market for online education, worth around $217 billion in 2022, is likely to hit the $475 billion mark by 2030.

The barriers to digital transformation

The LDCs face several challenges that constrain their ability to harness their digital potential.

Internet access

Access to, and affordability and quality of, electricity and the internet are extremely limited in the LDCs. The LDC electrification rate is 52% (compared to a 90% global average), with more than 500 million people in the LDCs having no access to electricity.

Although 83% of the 1.4 billion people who live in the LDCs are covered by mobile broadband signals (3G or above), only 36% are connected online. Coverage of fixed-line broadband remains abysmally low in LDCs, with only 1.6 subscriptions per 100 inhabitants in 2022. The price of a benchmark mobile broadband basket comprising a 2GB monthly allowance amounts to almost 6% of the average monthly income in the LDCs, four times the global average.

Moreover, the LDCs charge a hefty tariff on Information and Communication Technology products (six times the OECD average), including devices used for internet browsing. It costs 95% of an average monthly income in the LDCs to purchase a smartphone.

Educational attainment

The LDCs in general have a lower level of educational attainment and skilled workforce trained on science, technology, engineering and mathematics (STEM). Worse still, their exposure to digital skills enhancement opportunities has been limited.

The policy environment

Many LDCs lack both enabling policies (e.g., to enhance affordability), which help the state, firms and individuals take advantage of the digital opportunities. They also lack mitigating policies (e.g., to protect privacy), which help overcome obstacles emanating from the use of digital technology.

How to close the global digital divide

Considering these challenges, a few pathways — derived from concrete initiatives — could be followed by the LDCs to change course and leapfrog into digital technologies:

For infrastructure, an innovative approach that stands out is the Mozambique-Malawi Interconnector project to link Malawi to the Southern African Power Pool via a newly constructed power transmission line. The project leveraged the fibre-optic capacity required to operate the transmission line to increase digital connectivity in both countries. Kreditanstalt für Wiederaufbau mobilized €108 million from multiple sources through an innovative financing mechanism combining grants and loan.

Another example of innovative financing comes from a pioneering project in Nepal implemented by WorldLink Communications having received a $15.3 million impact investment from British International Investment and the Dolma Impact Fund. WorldLink accelerated internet expansion to hard-to-reach areas with reliable and affordable internet service, supporting the growth of the rural economy and small- and medium-sized enterprises in Nepal.

Moreover, the Digital Trade for Africa initiative jointly launched by the WTO and the World Bank on the margins of the 13th Ministerial Conference of the WTO last month in Abu Dhabi could be a game-changer for many African LDCs. Through this initiative, LDCs such as Benin, Burkina Faso, Rwanda and Togo, which have joined it, can attract sizeable investment on digital infrastructure.

Policies have a major role to play. For example, imposing universal service obligations to internet service providers (ISPs) to provide a minimum volume of data for free and charging prices above the threshold could help significantly boost affordability.

Similarly, a competition policy aimed at telecom companies can significantly reduce cost, as seen in LDCs like Bangladesh, Bhutan, Cambodia and Nepal, which are among the top 25 cheapest countries for mobile data. LDCs considering joining the WTO Information Technology Agreement to cut the cost of devices and equipment by reducing their tariff on IT products can follow the examples of other LDCs such as Lao PDR and Timor-Leste.

When it comes to STEM education, the commitment made at UNLDC5 for the establishment of an online university for the LDCs focusing on STEM education, especially for women and girls, can play a critical role.

In relation to skills development, a pathbreaking Technology Makers Lab initiative currently being implemented by the UN Technology Bank for Least Developed Countries in Niger and Togo can be a game-changer. This initiative provides training in the skills of the future for the youth in these countries.

Without having to reinvent the wheel, LDC governments should commit themselves to digital transformation with strong political will, and the international community should provide them with the support necessary to help them close the digital gap.

Thanks are due to H.E. Prof. Muhammadou M.O. Kah, Ambassador and Permanent Representative to the WTO, Permanent Mission of the Republic of The Gambia, Geneva, for a helpful discussion on this article.


Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

This article is brought to you in association with the European Commission.

World News in Brief: ‘No safe place in Ukraine’, IAEA calls for Iran nuclear inspections, Kenya hosts thousands of Ethiopians fleeing clashes

This article is published in association with United Nations. The UN refugee agency (UNHCR) on Tuesday urged continued international support for Ukraine’s population as Russian airstrikes intensify and humanitarian needs grow in advance of another bitterly cold winter. The “relentless” attacks are targeting critical energy infrastructure, leaving millions without heat and electricity, and limited access to […]
This article is published in association with United Nations.

Four in five domestic workers lack formal job protections, UN finds

This article is published in association with United Nations. An estimated 66.5 million domestic workers – representing more than four out of five domestic workers worldwide – were informally employed in 2025, a new report by the UN’s labour organisation has found. This makes them more than twice as likely as other employees to lack […]
© WFP/Mohamed Hinnawi An elderly woman in Al Saraya, Gaza, looks after young children after losing three sons, her husband, and home during the war.

Gaza: Families brace for fourth winter in tents as aid operations remain stymied

This article is published in association with United Nations. Families in Gaza are bracing for a fourth winter in tents and makeshift shelters as UN aid operations face mounting obstacles, with transport suspended on Tuesday due to Israel’s closure of the key Kerem Shalom crossing for election day. The UN project services agency in the […]

West Bank: Hebron crackdown displaces thousands, Türk warns of ethnic cleansing

This article is published in association with United Nations. Israel’s “aggressive operation” in the West Bank city of Hebron raises serious concerns of ethnic cleansing, UN human rights chief Volker Türk warned on Monday, as the number of Palestinians forced from their homes passed 3,000 on the eve of Israeli elections. The UN aid coordination […]
© UNICEF/Rawan Eleyan A mother and her children go through their belongings after a room in their home was burned in a settler attack in southern Hebron, West Bank. (July 2025)

West Bank: Guterres alarmed as Israel imposes sweeping closures after deadly Hebron attack

This article is published in association with United Nations. The UN said on Friday it was “extremely alarmed” by intensifying violence in the occupied West Bank, as Israel moved to seal off the territory following a deadly attack on its soldiers in Hebron. Two Israeli soldiers were killed and at least five injured when gunmen […]
This article is published in association with United Nations.

‘Connect the dots’ between street protests and global turmoil, urges Guterres

This article is published in association with United Nations. The international community must combat inequality and stop wars from expanding to ensure a safer world for all, the UN Secretary-General said on Thursday. Speaking to reporters in New York ahead of a visit to Egypt, António Guterres addressed growing public discontent in Europe and beyond, […]
© SOS Méditerranée/Anthony Jean Up to $500 million was paid in migrant smuggling fees on sea routes to Europe in 2025, according to new UN estimates.

Migrants paid up to $500 million in smuggling fees on European sea routes

This article is published in association with United Nations. The price tag for smuggling on European sea routes reached up to half a billion dollars last year, the UN Office on Drugs and Crime (UNODC) and the UN migration office, IOM, reported on Wednesday. Key points Almost half of migrants trying to get smuggled into […]
The author of this article explored other courses in different fields, but it was in medicine that she found her place. From the beginning of her studies, Valéria discovered in medical practice more than just a career: she found her vocation when she realized that caring for others also gave meaning to her own life. Driven by a genuine desire to help, the student stood out as a Teaching Assistant in Public Health, strengthening her humanized perspective. Today, she is part of the coordinating board of IFMSA UNEX MED, working in the Human Rights and Peace (SCORP) area, where she transforms empathy into action and social commitment into real impact.

Global warming will breach 1.5°C – but deep, fast cuts can still bring it back

This article is published in association with United Nations. With global temperature rise set to exceed 1.5°C above pre-industrial levels, countries “must pull out all the stops” and urgently cut emissions to minimize the overshoot and return to the internationally agreed threshold by the end of this century. The recommendation comes in the Emissions Gap […]
© Agricultural Development Association – PARC A farmer in the West Bank harvest olives in October 2025. (file)

‘Season of fear’: Escalating Israeli attacks on West Bank olive farmers, deadly strikes on Gaza

This article is published in association with United Nations. Israeli attacks on war-torn Gaza over the weekend killed at least six Palestinians, including children, despite a year-old ceasefire agreement. Meanwhile, in the occupied West Bank, settler violence continued through the ongoing olive harvest, with UN independent experts on Monday urging Israel to protect Palestinian farmers. […]
This article is published in association with United Nations.

COP17: The world has a plan to save nature. Is it working?

This article is published in association with United Nations. The UN Secretary-General has called for an end to the “war on nature”. On Monday, governments gathering in Yerevan, Armenia, will have to confront a more practical question: are they doing enough to win the peace and put the world’s biodiversity goals back on track? COP17, […]
© WHO A large-scale combined missile and drone strike hit Kyiv's Solomianskyi district on August 20, 2026.

Ukraine: Critical health supplies destroyed in ongoing Russian attacks

This article is published in association with United Nations. Ongoing and deadly Russian attacks across Ukraine are causing serious healthcare disruption, with more than $1.5 million-worth of medicines and supplies destroyed in four separate strikes on warehouses used by the UN there since July. According to the World Health Organization (WHO), 21 warehouses have been […]
© UNICEF/Niccolò Corti A child sits alone, praying, at a reception centre for migrants in Lampedusa, Italy.

World News in Brief: West African migrant crossings, Argentina takes UK to maritime tribunal, farming in Gaza, mental health update

This article is published in association with United Nations. Fewer people from West Africa are reaching Europe by sea, but the journey has not become safer, the UN migration agency (IOM) said on Tuesday. Arrivals from Mali, Senegal, Guinea and The Gambia fell by 59 per cent in the first half of 2026 compared with […]
© UN Ukraine The aftermath of a drone attack in a residential area in Kyiv on 12 October.

Ukraine: Residents killed and dozens injured in attacks on Kharkiv and Kyiv

This article is published in association with United Nations. Russian attacks in recent days on on Ukraine’s two largest cities have again killed and injured civilians, damaged homes and civilian infrastructure, the UN aid coordination office (OCHA) said on Tuesday. Aid workers and rescuers were on the ground in Kyiv and Kharkiv following aerial strikes that […]
© IOM The war in Sudan has created extreme levels of displacement, both internally and across Sudan’s borders.

‘Efficiency has limits’: UNHCR chief warns refugee protection is buckling under cuts

This article is published in association with United Nations. The money is running out faster than needs are growing: with 117 million men, women and children now forced from their homes, the UN refugee agency (UNHCR) has received just $3 billion of the $8.5 billion it needs this year – and its chief, Barham Salih, warns […]
© UNOCHA/Ramatoulaye Moussa Maz A woman walks through a camp for displaced people in Ituri Province in eastern DR Congo, where decades of violence have impacted millions, creating a humanitarian emergency.

Rise in poverty is ‘a wake-up call for the world’, UN development chief says

This article is published in association with United Nations. The number of people living in “multidimensional” poverty has risen for the first time in 15 years, reaching 1.2 billion, as families struggle to meet their basic needs.  The finding comes in the 2026 update of the global Multidimensional Poverty Index (MPI) published by the United Nations […]
© UNDP Nidaa with the chickens and ducks she raises in Gaza.

Sustaining livelihoods amid crisis in Gaza

This article is published in association with United Nations. Nidaa, Hanaa and Hanin have different stories, but share a common thread: the determination to build something of their own and keep it going despite extraordinary challenges facing them in war-ravaged Gaza. Following the devastation of the past three years, productive capacity in Gaza has been severely […]
© UNICEF/Oleksii Filippov A firefighter works on the balcony of a wrecked building in Kyiv, Ukraine.

World News in Brief: Russian attacks continue in Ukraine, Gazans shelter in flood-prone areas, keeping sight of eye health

This article is published in association with United Nations. UN human rights chief Volker Türk said on Thursday he was appalled by a wave of attacks that have killed civilians across Ukraine over the past four days.  They include a strike on two public buses in Kramatorsk on Thursday, that left at least 30 civilians dead, […]
This article is published in association with United Nations.

Ukraine: UN condemns latest attacks and calls for civilian protection

This article is published in association with United Nations. The UN Humanitarian Coordinator for Ukraine on Wednesday called for an end to attacks against civilians following further overnight strikes by Russian forces that reportedly killed at least 19 in the Chernihiv Region. Among the dead in Pryluky were five children, three of them babies, according to the […]
© UNICEF-SoP/Crickx People walk down a dusty road in the West Bank carrying belongings.

Israeli demolition in East Jerusalem displaces 69 Palestinians

This article is published in association with United Nations. Sixty-nine Palestinians – more than half of them children – were displaced on Tuesday after Israeli authorities green lit the demolition of their residential building in the At Tur area of East Jerusalem, the UN aid coordination office (OCHA) has reported. This is the highest number of […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com