By Amos SAFO
Last week, I listened to a weird audio in which the former president of Ghana, Mr. John Dramani Mahama told an audience in Accra in the Ga language: “we don’t eat digitisation.”
The former president’s decision to address a Ga community, where he linked the Ga staple food ‘Kenkey” with digitisation has been interpreted by many political analysts as culturally insensitive and derogatory.
However, factually, digitisation does not put kenkey, fufu, rice, yam and banku on the table, every critical economic analyst would admit that the average Ghanaian and the entire economy are benefitting more from digitisation than the simplistic assertion that it does not put food on the table.
Studies have shown that countries that adopt and integrate digitisation to national development have enormous opportunities to expand their economies and promote networked societies.
In other words, the adoption and efficient use of digital technologies in businesses (for production) and governments (to provide e-services) could result in higher labour productivity and economic growth. For instance, as of February 2024, e-money transactions in Ghana amounted to around 196 billion Ghanaian cedis (GHS), some 12.9 billion U.S. dollars. This is positive impact of mobile phone interoperability is contributing to the Ghanaian economy.
Policy agenda
The shift to a digital economy and society has been at the top of the policy agenda of advanced and emerging economies alike. This is not surprising; given the advantages, it can offer in terms of both corporate profitability and the overall economic performance. In fact, the current government is making huge investments in technology infrastructure, perhaps, to harness the benefits of digitizing the economy.
As indicated earlier, for both advanced and emerging economies, digitisation is not only a source of growth, but it is also crucial for long-term economic security, as well as the quality of life of citizens. Other studies suggest that improvement in the quality of life can be achieved through improvements in public sector efficiency through the provision of more accessible and affordable e-services.
Current e-services embarked by the current government include, mobile phone interoperability, applications for passports and drivers’ licences, National Health Insurance registration and renewal, buying electricity power, paying insurance premiums, e-governance, citizen applications among others.
Factor of production
There are indications that digitisation is a new paradigm shift in economic development, which no serious country should neglect. Therefore, significant has the digitisation become that economic and financial experts have described it as the fifth factor of production. The old factors of production are land, labour, entrepreneurship and capital.
The above assertions on the contribution of digitisation to economic growth has policy implications, which are compelling serious governments to prioritise digitisation. Therefore, countries should anticipate the changes digitisation would bring to the economy and society by investing in the technology.
Internet technology, including Artificial Intelligence has been estimated to contribute $13 billion to the global economy over the few years. For this reason, only governments that equip their populations will benefit from the dividend.
Manifesto promises
Curiously, I have reviewed the manifesto promises of the two leading political parties, the ruling New Patriotic Party (NPP), and the opposition National Democratic Congress (NDC) To start with, the NPP places a strong emphasis on building a world-class digital economy. Their plans include initiatives such as e-residency, digital platforms for government services, and a national robotics lab.
The NDC on the other hand mentions digitisation as part of broader modernization efforts, focusing on leveraging technology to improve governance and public service delivery, but with less emphasis on creating a digital economy compared to the NPP.
Education and digital Skills
The NPP focuses on expanding digital education through initiatives like coding in schools, digital labs, and scholarships for ICT-related courses. They aim to prepare students for the digital economy by training and equipping one million youth with ICT jobs.
The NDC also highlights digital education, aiming to incorporate ICT into the educational curriculum at all levels by providing training for teachers to enhance digital literacy among students.
Digital Infrastructure
Furthermore, the NPP commits to invest in digital infrastructure, including expanding high-speed internet access across the country, particularly in rural areas to bridge the digital divide. They also plan to develop smart cities and digital hubs. Similarly, NDC emphasizes the expansion of digital infrastructure, focusing on improving internet connectivity, especially in underserved areas, and upgrading the national ICT backbone to support digital initiatives.
Business and innovation
The NPP encourages digital entrepreneurship and innovation, offering incentives for tech start-ups, establishing innovation hubs, and promoting Ghana as a digital business hub in Africa. In the same vein, the NDC supports innovation and entrepreneurship in the digital space, with plans to create an enabling environment for start-ups, particularly those focused on solving local problems through technology.
Digital inclusion
The NPP is committed to ensuring digital inclusion, with initiatives to provide affordable internet access, distribute devices to underserved communities, and offer digital literacy programs for all citizens.
The NDC also emphasizes digital inclusion by ensuring that all Ghanaians, regardless of location or economic status, have access to digital tools and services. This includes specific programs to bridge the digital divide in rural areas.
Overall, the NPP promises to promote e-commerce as part of their digital economy strategy, supporting online businesses and facilitating digital trade to boost the economy. The NDC also supports e-commerce, aiming to create a conducive environment for online businesses and enhance the regulatory framework for digital trade.
Youth Employment
The NPP has a specific focus on youth employment, including initiatives like the “Youth in Digital Skills” program to equip young people with the necessary skills to thrive in the digital economy. They also plan to expand initiatives like the National Entrepreneurship and Innovation Plan (NEIP) to support young entrepreneurs.
A key component of the NPP’s job creation policy is building a digital economy. They plan to create numerous jobs in the tech sector, including software development, cybersecurity, and digital marketing.
They also emphasize supporting startups and tech innovation hubs. In fact digital marketing has so far created enormous business opportunities for the youth of Ghana, ranging from house to house delivery, transport services and e-pharmacy among others.
While the NDC acknowledges the importance of the digital economy, their focus is more on incorporating technology into existing sectors like manufacturing and agriculture rather than creating tech-specific jobs. Their emphasis is on using technology to enhance productivity and create jobs in traditional sectors.
E-service applications
A few months ago, the Electricity Company of Ghana changed the old meters and replaced them with new high-tech digitalized ones. The new meters have digital functions that enable customers to buy power without physically going to vendors.
This has made life so easy, as I am able to track my power consumption and to top up, where necessary. In addition, a few weeks ago, I downloaded the National Health Insurance Application and registered online to access the NHIS services.
Interestingly, my vital data was drawn from my Ghana card to complete my insurance card online. I was able to link my insurance card with my Ghana card and obtained my card online. In fact, life could not be easier with the rapid digitisation of government services in Ghana.
Digitisation is fast emerging as an economic transformational agenda; therefore, any leader who fails to embrace the new norm of economic development needs a rapid mind-set change. As all countries across the world are moving forward with digitisation, Ghana cannot afford to put on the reverse gear.
If Mr. Mahama’s unfortunate comments about digitisation and kenkey are to be taken seriously, it appears to me that he and his party do not see the evolving technology as a critical economic policy to be pursued. Therefore, their manifesto promises to digitalize the economy could be a matter of doublespeak or political sophistry. It was an unfortunate comment.
