Africa is poised to emerge as a global innovation powerhouse. The continent is influencing its own destiny rather than merely catching up to the rest of the world. With the emergence of innovative companies, technology, and innovation hubs, Africa is redefining the way ideas are generated and turned into practical solutions.
Kenya’s dynamic capital, Nairobi, is becoming recognized for more than simply its national parks, wildlife, and lively culture. It has gained another name over the last ten years: Africa’s Silicon Savannah, which is evidence of the city’s increasing prominence as a center for entrepreneurship, innovation, and technology.
Other countries like Nigeria, South Africa, Egypt, and Rwanda have also made significant strides in technology, immensely boosting their economy as well as empowering their younger generation. Ghana, on the other hand, is climbing up the ladder bit by bit to become the home of technology in Africa.
As Ghana continues to navigate the complexities of the 21st century, the digital economy has emerged as a critical pillar for our national development. It represents not only a pathway to economic growth but also a vehicle for social inclusion, innovation, and global competitiveness. Is the feat attainable?
An overview of Ghana’s digital landscape
Ghana has made remarkable strides in building a solid foundation for a thriving digital economy. Our mobile money ecosystem has revolutionized financial inclusion, bringing banking services to millions of Ghanaians who were previously unbanked.
The introduction of the Ghana Card has streamlined identification processes, facilitating easier access to a wide range of services. The government’s commitment to digital transformation is evident in the successful rollout of e-government initiatives, such as mobile money interoperability, the Ghana.GOV platform, the GhanaPost GPS digital addressing system, paperless ports, the GHANEPS e-procurement platform, the Integrated Tax Application and Preparation System, Smart Workplace to name a few, which has enhanced the efficiency, transparency, and accessibility of public services.
The African Development Bank reported a 28% annual growth in AI adoption by Ghanaian businesses since 2017. AI is being used by agricultural companies to provide real-time data on weather patterns, crop diseases, and commodity prices, improving crop productivity and reducing losses. Fintechs are enhancing mobile payment solutions and e-commerce platforms like Jumia to optimize inventory management.
The drone system was also introduced, where drones will be transporting medicines to hospitals in rural areas where vehicles are hard to access.
We have also seen significant investments in broadband infrastructure, with GovNet connecting 951 public institutions nationwide and the Eastern Corridor Fibre Optic Backbone expanding internet access across the country. Moreover, various initiatives aimed at promoting digital literacy and skills development have been launched, equipping more Ghanaians with the tools needed to thrive in the digital age.
Last year, the government of Ghana launched the Ghana Digital Economic Policy, a strategic blueprint designed to guide Ghana’s journey into a fully digitalised future.
Recently, the Ministry of Communication, Digital Technology and Innovations officially launched the one million coders program, designed to equip Ghanaian youth with digital skills. This program, according to the sector minister, is a gateway to becoming Africa’s home of technology.
By 2030, Ghana’s digital economy might be worth USD 5 billion, up from its present valuation of USD 1 billion. In Ghana, the service sector is driving much of the country’s digitalization, with the industrial and agricultural sectors contributing very little. As of 2021, the service sector accounts for 45.9% of Ghana’s total GDP, making it the greatest contributor to the country’s GDP. Following the agricultural sector, which contributed about 21% of GDP in 2021, the industrial sector is the second largest, accounting for 30% of GDP. A strong digital transformation in five important areas—administration, finance, health, transportation, and storage, as well as wholesale and retail commerce, contributed to the growth of the service sector.
Challenges
Even though Ghana’s digital economy has advanced significantly in recent years, there are still a number of obstacles to overcome. With a substantial section of our population, especially in rural regions, lacking access to the internet and digital services, the digital divide is still a major problem.
This gap widens socioeconomic gaps and prevents fair access to opportunities. The quick speed of technology advancement also poses a problem for infrastructure and regulatory frameworks, which need to be modified constantly to keep up with new developments.
Way forward
Investing in human capital
Ghana needs to increase its digitally skilled workforce to meet economic growth and the digitalization of agriculture, manufacturing, and services. Major skills gaps, particularly in big data and analytics, business analysis, business process management, data science, project management, and machine learning, are negatively impacting the digital economy. The government should conduct a detailed assessment of the ICT industry’s skills needs, and consider using fiscal measures like tax rebates for firms investing in digital skills training or monetary incentives for educational institutions.
This can be achieved by providing training opportunities for government and businesses, combining practical digital skills with soft skills required by employers. With the right application, government leadership, and strategic partnerships, Ghana can make significant strides towards digital transformation.
Policy reforms
In order to integrate new technologies, such as e-commerce laws and cutting-edge digital tools like blockchain, AI, IoT, and machine learning, Ghana must update its digital policy and regulatory framework. Discussions with legislators, the corporate sector, and international partners can help pinpoint areas that need improvement. While e-government has advanced, many residents lack digital skills and trust, according to the World Bank’s diagnostic assessment on the digital economy. Ghana may become a center for digitalization through collaboration with development partners, better coordination across agencies, and more awareness of digitally connected government services.
Infrastructure
According to reports, Ghana lacks the necessary infrastructure, such as industrial parks, dependable electricity supplies, broadband bandwidth, and good road networks, to support the fast expansion of the digital economy. To expand the network to include data centers, cloud computing, internet connectivity, and electrical access, especially in the middle and last miles, more funding is required. Investment from the commercial sector and development partners through public-partnership models and hybrid financing options will be necessary for this. To scale access, a cluster strategy like digital/industrial hubs might be taken into consideration.
There’s no denying that the road ahead won’t be easy. Ghana faces challenges like limited resources and underdeveloped infrastructure. But the opportunities far outweigh these obstacles. With the right investments, especially in tech-driven sectors, we could see rapid growth. And hopefully, in a few years to come, Ghana can also become the “Silicon Savannah’ of Africa.
