African agency in ICT infrastructure provider choice: Navigating access to foreign finance and technology

Abstract

After nearly three decades of “ICT for development”, the rollout of ICT backbone infrastructure remains challenging throughout Africa. African states do not only depend on the technology of foreign companies but must also seek external finance to pay for it. This dual dependency puts African governments in a vulnerable position, leading us to inquire: to what extent does the dual dependency on foreign finance and technology affect African agency in ICT infrastructure provider choice? The paper proposes a model that distinguishes between the agency of higher and lower income countries. Elaborating on the latter, the model assumes that the source of foreign ICT-related finance (i.e., China, World Bank, both, internal) determines whether the recipient state can exercise a weak, medium, or strong degree of agency in its ICT infrastructure provider choice. The paper further argues that the link between foreign finance and degree of agency is shaped by the digital development agenda of the donor. For instance, the model predicts that countries which predominantly received Chinese ICT finance possess weak agency when choosing an ICT infrastructure provider because China's digital development agenda ties the provision of finance to hiring a Chinese contractor. By examining the ICT-related financial inflows and geographical distribution of network equipment providers in African states, the paper shows that the source of finance affects the degree of agency and, subsequently, the choice of ICT infrastructure provider. However, the analysis also suggests a divide in African agency along former colonial lines. In fact, the model holds only for countries without colonial ties to France whereas former French colonies all contracted Huawei, regardless of ICT finance flows.