Digital connectivity matters and its importance has accelerated since COVID-19. The good news in 2021 was that the number of digitally connected individuals rose sharply. However, there is an urgent challenge to connect the unconnected, nearly all in low-and middle-income countries (LMICs).

A priority should be MSMEs –key drivers of the economy and providers of employment –most of whom do not fully leverage digital connectivity to run their businesses and engage in trade. Increasing access and capability to use digital channels and tools could be one of the most powerful mechanisms to respond to the looming economic downturn, and to boost the resilience of small businesses in LMICs. Greater adoption of digital technology and participation of MSMEs in digital trade brings important economic benefits, drives the demand for digital capacity and in turn improves the business case for further investments in infrastructure: a virtuous cycle that can accelerate the expansion and improvement of connectivity.