Embracing Technology: How Developing Nations Are Adapting

Technology adoption is reshaping how developing nations participate in the global economy. From mobile banking in sub-Saharan Africa to telemedicine in rural South Asia, countries across the Global South are leveraging new tools to leapfrog traditional development pathways. But what exactly does technology adoption mean in this context, and why does it matter so much? Let’s break it down.

What is technology adoption? 🔗

Technology adoption refers to the process by which individuals, businesses, and governments integrate new technological tools and systems into their daily operations and economies. It goes beyond simply having access to a device or platform – it includes learning to use it effectively, adapting it to local needs, and scaling its benefits across communities.

For developing nations, this process carries particular weight. Countries can achieve higher prosperity through the adoption of more sophisticated technologies by firms, yet around the world, there is a large technological divide across firms . In many low- and middle-income countries, businesses still rely on rudimentary processes, which limits productivity and job quality. Technology adoption, then, is not just about modernisation – it is a direct pathway to reducing poverty, expanding opportunity, and participating meaningfully in the global economy.

Why it matters for the developing world 🔗

The stakes are high. Digital technologies have the potential to bridge economic and educational gaps, but the digital divide risks leaving the world’s poorest permanently excluded from the fourth industrial revolution . When a farmer in Kenya can check commodity prices on a mobile phone before selling crops, or a student in Bangladesh can attend a virtual class, technology adoption directly improves livelihoods. Without it, existing inequalities deepen.

Mobile technology: the game changer 🔗

No technology has transformed developing economies as rapidly as the mobile phone. Unlike landline infrastructure, which requires massive capital investment, wireless networks can be deployed quickly and affordably – allowing countries to skip an entire generation of wired infrastructure.

According to the World Bank’s Global Findex 2025 report, nearly 80% of adults worldwide now have a financial account, up from 50% in 2011. Mobile-phone technology played a key role, with 10% of adults in developing economies using a mobile-money account to save – a 5-percentage-point increase from 2021 . In practical terms, this means hundreds of millions of previously unbanked individuals can now save, send money, and access credit through their phones.

In 2024, 40% of adults in developing economies saved in a financial account – a 16-percentage-point increase since 2021 and the fastest rise in more than a decade . This surge in formal savings fuels national financial systems, making more capital available for investment and job creation.

Mobile money and financial inclusion 🔗

Services like M-PESA in Kenya pioneered mobile money, and the model has since expanded across Africa and Asia. In Sub-Saharan Africa, formal savings increased by 12 percentage points to 35% of adults . Mobile money accounts allow people in remote areas – where bank branches simply don’t exist – to participate in the formal economy for the first time.

Digital financial services are also helping narrow the gender gap in account ownership: in low- and middle-income countries, women’s account ownership nearly doubled from 37% in 2011 to 73% in 2024 . This has significant implications for women’s economic empowerment, enabling them to manage their own finances, start businesses, and invest in their families’ futures.

Smartphones and economic growth 🔗

In 2022, mobile technologies helped generate 8.1% of GDP across sub-Saharan Africa, amounting to roughly $170 billion of economic value added . The correlation between smartphone usage and GDP growth is well documented: every new mobile user creates ripple effects across job creation, productivity, and consumer demand.

Through wireless applications, developing countries can bypass more costly investments in fixed-wire telecom infrastructure when adopting new technologies . This “leapfrogging” effect is one of the most significant advantages mobile technology offers to nations that lack legacy systems.

Biotechnology and its growing role 🔗

While mobile technology addresses connectivity and financial access, biotechnology is transforming health and agriculture in the developing world. The wide range of techniques presented by biotechnology provides an important opportunity for developing countries to adopt technologies tailored to their own environmental and societal needs .

Healthcare applications 🔗

Biotechnology has enabled the development of affordable diagnostic tools, recombinant vaccines, and improved drug-delivery systems for diseases that disproportionately affect the Global South. A report by the University of Toronto Joint Centre for Bioethics listed molecular diagnostics, recombinant vaccines, vaccine and drug delivery, bioremediation, and enriched genetically modified crops among the most promising biotechnologies for improving health in developing countries .

However, a “genomic divide” threatens to widen the gap if biotechnological research continues to focus primarily on diseases prevalent in wealthy nations. Partnerships like the NIH Office of Technology Transfer initiative are working to license biomedical innovations to institutions in Latin America, Africa, and Asia to counter this trend.

Agriculture and food security 🔗

Genetically modified and biofortified crops are helping address malnutrition and food insecurity. Drought-resistant maize, vitamin-enriched rice, and pest-resistant cotton varieties developed through biotechnology have improved yields and farmer incomes in countries like India, Nigeria, and Bangladesh. These innovations are particularly critical as climate change increasingly threatens agricultural productivity in tropical regions.

Virtual services and the digital economy 🔗

The COVID-19 pandemic accelerated the adoption of virtual services across the developing world. Telemedicine, online education, e-governance, and remote work platforms saw rapid uptake, demonstrating that digital services can extend essential provisions to underserved populations.

E-governance and public services 🔗

Countries like India have pioneered large-scale digital public infrastructure. Systems such as Aadhaar (digital identity) and UPI (instant payments) have enabled direct benefit transfers to millions, reducing leakage and corruption in welfare programmes. Three-quarters of adults who receive government payments – and half of wage earners – now receive their money into an account, a practice that helps reduce theft and ensure funds reach the intended recipients .

Education and telemedicine 🔗

Virtual classrooms and online educational resources are extending quality learning to rural and remote areas. Similarly, telemedicine platforms allow patients in areas with few doctors to consult specialists remotely. These services are particularly valuable in regions where physical infrastructure like roads and hospitals remains limited.

The role of artificial intelligence 🔗

According to UNCTAD’s Technology and Innovation Report 2025, AI could lead to a 4% reduction in global greenhouse gas emissions by 2030 from efficiency improvements alone . In agriculture, AI-powered drones and robots are helping with crop monitoring and harvesting. In energy, AI optimises smart grids and the distribution of renewable energy from solar and wind sources.

For developing nations, AI presents both promise and risk. The technology can dramatically improve productivity and service delivery, but it also requires skilled workforces and robust data infrastructure – resources many countries still lack.

Challenges to technology adoption 🔗

Despite impressive gains, developing nations face significant obstacles in fully embracing technology. These barriers are interconnected and often reinforce each other.

Infrastructure gaps 🔗

Without robust digital infrastructure, developing economies risk being excluded from technological advancements reshaping global trade. Businesses face challenges in accessing cloud computing services, adopting e-government initiatives, and scaling digital entrepreneurship . Unreliable electricity supply remains a fundamental constraint – data centres and digital networks require consistent power that many regions simply cannot provide.

Africa’s tech growth is hindered by weak infrastructure and limited 4G and 5G network coverage, which stalls progress in key areas like education and healthcare . While 2G and 3G networks are being phased out elsewhere, they remain central to telecommunications in many African countries because they offer lower-cost basic services.

Affordability and access 🔗

The cost of access is prohibitively higher in developing countries relative to average household income . Even as device prices fall, smartphones, data plans, and internet services remain out of reach for many. In low-income countries, there was only about one fixed-broadband subscription per 100 people, despite fixed broadband accounting for more than 80% of global internet traffic in 2023 .

Cultural and social barriers 🔗

Language barriers, cultural values, and local knowledge systems must be taken into account when designing and implementing digital interventions . Technology that works well in urban centres may be irrelevant or confusing in rural communities with different literacy levels, languages, and customs. Gender-based digital exclusion also persists, with women in many regions having significantly lower access to devices and the internet than men.

Skills and digital literacy 🔗

Access alone is not enough. People need the skills to use technology productively. Many developing countries face shortages of trained professionals in areas like software development, network management, and data analysis. Without investment in digital literacy and education, technology adoption remains superficial – people may have phones but lack the ability to use them for economic advancement.

Solutions and future prospects 🔗

Overcoming these barriers requires coordinated action from governments, international organisations, and the private sector.

Shared digital infrastructure 🔗

Instead of each country building and sustaining independent data centres, a shared digital infrastructure model presents a sustainable alternative. By pooling resources, a group of countries can develop regional data hubs and cloud storage centres that serve multiple nations, reducing costs for individual states . Regional bodies like ASEAN, the African Union, and CARICOM are already exploring this cooperative approach.

Policy reform and investment 🔗

Government policies such as privatisation and liberalisation of the telecommunications sector play a significant role in accelerating mobile adoption . Jamaica, for example, saw rapid mobile growth after liberalising its telecom sector in 1999, which lowered prices and boosted competition. Similar reforms in other developing countries could unlock latent demand.

International climate and development finance can also be directed towards technology transfer. UNEP’s Adaptation Gap Report 2024 emphasises the need to strengthen capacity building and technology transfer to improve the effectiveness of adaptation actions in developing countries .

Public-private partnerships 🔗

Collaboration between governments and technology companies can accelerate deployment. An Indo-German development cooperation project in India linked commercial finance with renewable energy technologies that enhance climate resilience in agriculture, benefiting a sector that employed 46% of India’s workforce . These models demonstrate how blending public support with private investment can deliver technology to those who need it most.

Investing in human capital 🔗

Ultimately, technology is only as useful as the people who wield it. Developing nations must invest in education systems that produce digitally literate graduates, training programmes for existing workers, and research institutions that can adapt imported technologies to local contexts. The successful adaptation of science-intensive technology such as biotechnology involves developing basic sciences, institutional capabilities, and establishing a macroenvironment conducive to technological change and production .

Globalization and the technology bridge 🔗

Technology adoption does not happen in isolation – it is deeply intertwined with globalisation. Digital connectivity allows developing nations to participate in global value chains, access international markets, and attract foreign investment. E-commerce platforms enable artisans in rural India or farmers in West Africa to sell products to customers worldwide.

At the same time, the international community must urgently address the critical and widening digital gap between developed and developing countries , as the UN Second Committee has stressed. Without deliberate intervention, technology could just as easily widen global inequalities as narrow them. Frameworks like the Global Digital Compact aim to set multilateral guardrails ensuring that the benefits of digital transformation are shared equitably.

What do you think? Can developing nations truly leapfrog traditional development stages through technology, or will infrastructure and affordability gaps keep them perpetually catching up? How can local communities take greater ownership of the technologies being introduced into their lives?

References

1. https://pmc.ncbi.nlm.nih.gov/articles/PMC7125924/
2. https://unctad.org/node/48122
3. https://www.undp.org/digital/standards/2-bridge-digital-divide
4. https://www.wri.org/insights/global-goal-on-adaptation-explained
5. https://press.un.org/en/2024/gaef3608.doc.htm
6. https://www.weforum.org/stories/2025/04/shared-digital-infrastructure-emerging-economies/