By Ethel COFIE
Ghana’s technology ecosystem is a cornerstone of the nation’s economic growth and innovation, contributing approximately 3.6% of GDP—equivalent to over $1.7 billion in 2022. The country boasts one of Africa’s highest mobile penetration rates at 134%, providing fertile ground for tech startups, e-commerce platforms, and digital service providers.
The tech sector has significantly boosted job creation, employing thousands directly and indirectly across fields like software development, telecommunications, and digital payments. Initiatives like mobile money have revolutionized financial inclusion, with Ghana’s highest mobile penetration rates at 134%, providing fertile ground for tech startups, e-commerce platforms, and digital service providers.
The tech sector has significantly boosted job creation, employing thousands directly and indirectly across fields like software development, telecommunications, and digital payments. Initiatives like mobile money have revolutionized financial inclusion, with GHS¢576 billion in mobile money transactions recorded in Q1 2024 alone—a 33.4% increase year-on-year.
However, despite its remarkable progress, Ghana’s tech ecosystem faces systemic challenges. High data costs prevent equitable access to the internet, with over 50% of Ghanaians citing cost as a barrier to regular use.
The lack of adequate digital infrastructure, insufficient funding for startups, and a shortage of skilled talent continue to stifle the sector’s full potential. The appointment of the next Minister for Communications and Digitalization provides a unique opportunity to operationalize and lay the groundwork for Ghana’s digital transformation.
Key Issues in the Technology Ecosystem
Access to Affordable Internet: High costs and limited rural connectivity persist despite Ghana’s impressive mobile penetration. Internet penetration stands at 68.2%, but rural areas lag significantly behind urban centers. The Manifesto’s promise to build a National Information Highway using 5G and fiber-optic technologies must be operationalized to bridge this gap.
Funding and Investment: Only a small percentage of Ghanaian startups access venture capital, limiting their ability to scale. Most startups rely on personal funds or small grants, inhibiting innovation and growth. The establishment of the $50 million Digital Innovation Fund, as outlined in the manifesto, is essential to addressing this challenge.
Digital Infrastructure: Inadequate infrastructure, such as limited data centers and unreliable electricity, restricts tech scalability, particularly for cloud services and e-commerce platforms.
Regulatory Bottlenecks: Unclear policies on emerging technologies like blockchain, AI, and digital currencies hinder investor confidence and stymie innovation.
Skills Gap: A mismatch between industry needs and the output of educational institutions has left the ecosystem short of critical talent in areas like cybersecurity, software engineering, and data analytics.
Limited Ecosystem Collaboration: The fragmented relationship between government, private sector players, and academia hampers collective efforts to foster innovation and growth.
Setting the Tone:
The new minister must act swiftly to demonstrate leadership and commitment to delivering on the manifesto’s promises. The following actions can serve as a foundation for impactful change:
Conduct a Comprehensive Review of Current Projects
- Assess the progress of initiatives such as the Rural Telephony and Digital Inclusion Project and the implementation of 5G networks.
- Evaluate the Digital Economy Policy to identify gaps and reprioritize resources for maximum impact.
- Publish a public report to ensure transparency and build trust within the ecosystem.
Foster Public-Private Partnerships
- Convene a National Tech Ecosystem Forum to align government policies with ecosystem needs.
- Leverage partnerships with global tech giants to establish regional offices and R&D centers in Ghana.
- Encourage collaboration between startups, academia, and corporations to foster innovation and knowledge sharing.
Promote E-Government Services
- Fast-track the digitization of public services, ensuring platforms are user-friendly and accessible.
- Launch targeted campaigns to increase adoption of e-government platforms for tax payments, business registrations, and social services.
Develop a National Digital Infrastructure Plan
- Invest in additional data centers and improve electricity reliability in tech hubs to support cloud computing and startups.
- Implement the manifesto’s plan to upgrade ICT parks like the Dawa ICT Park into world-class innovation hubs.
- Partner with alternative energy source providers to stabilize electricity, ensuring uninterrupted power for tech businesses.
Operationalize the Technology Growth Fund
- Operationalize the $50 million Digital Innovation Fund to provide grants and seed funding for startups addressing challenges in health, agriculture, and education.
- Partner with international investors and development organizations to expand the fund’s reach and impact.
Address Regulatory Bottlenecks
- Fast-track the operationalization of the National Digital Economy Policy, with adaptive guidelines for blockchain, AI
- Simplify processes for startups and technology providers, reducing approval timelines by 20-30% within the first year.
- Engage with tech associations to ensure policies align with industry needs.
Strengthen Cybersecurity Frameworks
- Introduce real-time cybersecurity monitoring systems to protect digital infrastructure from growing threats with a special emphasis on mobile money cyber security
- Launch public awareness campaigns on digital safety, targeting consumers and SMEs.
- Invest in capacity-building programs to train law enforcement and industry players in cybersecurity best practices.
Prioritize Affordable Internet Access
- Collaborate with telecommunications providers to introduce tiered pricing models that make internet affordable for low-income users.
- Operationalize the manifesto’s promise to deploy community-based networks and expand fiber-optic coverage in underserved areas.
- Aim to reduce average internet costs by 3-5% within a year, leveraging public-private partnerships.
Launch Digital Literacy Programs
- Scale initiatives like Girls-in-ICT, aiming to train an additional 20,000 youth annually in coding, digital marketing, and app development within the One Million Coders Programme by partnering with universities and training institutions.
- Work with the ministry of education to embed tech-focused curricula in schools, emphasizing fintech, AI, and software engineering.
Conclusion: A Bold Vision for Digital Ghana
The first 90 days of the new Minister for Communications and Digitalization will be pivotal in shaping the future of Ghana’s tech ecosystem. Immediate action on key issues such as funding gaps, cybersecurity, and digital literacy will set a tone of accountability and progress, fostering trust and collaboration among stakeholders.
Ghana’s technology sector has proven its potential to drive economic growth and job creation. With bold and decisive leadership, the ecosystem can overcome its challenges, unlock innovation, and lead the continent in digital excellence. The time for action is now—Ghana’s digital future depends on it.
