Country Snapshot: The Current And Future State Of Digital Transformation In Ghana

Digital transformation has become a global phenomenon, revolutionising industries, an essential driver of economic growth, innovation, and inclusivity, as well as reshaping economies. In the heart of West Africa, Ghana is embracing this transformative journey, leveraging technology to drive innovation, enhance efficiency, and unlock new opportunities across various sectors. This blog post explores the current state of digital transformation in Ghana and delves into the promising future that lies ahead.

THE HISTORY OF DIGITAL TRANSFORMATION IN GHANA

Ghana was among the earliest African countries to invest in internet connectivity, which has proven to be a major influencer that significantly shapes the costs of communicating within Africa, and with the rest of the world. In Ghana, earnest efforts at digitalisation began in the early 2000s, following a series of information and communication technology (ICT)-related reforms that date back to the 1980s.

What is now a highly competitive sector started as a nationalised monopoly in the form of Ghana postal and telecommunication. The telecommunications sector was liberalised in 1994 with the adoption of a five-year ICT Accelerated Development Plan directed at restructuring the telecoms sector and repositioning it as a major vehicle for socio-economic transformation and growth. 

Ghana registered ‘GH.COM’, its first commercial internet domain, in 1993, and by 1995, in collaboration with other organisations, it became the first West African and second sub-Saharan African country to attain full interconnectivity. 

In pursuit of using ICT as the fulcrum of the next phase of its developmental agenda, significant investments in infrastructure for the deployment of internet and ICT-related services were made. 

GHANA’S DIGITAL TRANSFORMATION SPANS MULTIPLE SECTORS

Ghana has made significant strides in improving its digital infrastructure. The country has witnessed increased internet penetration, with the proliferation of mobile devices and expanding 4G coverage. The government’s initiatives, such as the National Fibre Optic Backbone Infrastructure Project, have played a pivotal role in improving connectivity and bridging the digital divide. 

These initiatives led to Google opening its first Africa-based artificial intelligence (AI) research centre in Accra in 2019, as well as digital transformation across multiple sectors from government to finance to agriculture.

• E-Government Services: The Ghanaian government has embraced digitalisation to enhance public services. Initiatives like the Ghana.gov platform enable citizens to access a wide range of services online, including tax filing, business registration, and passport applications. These efforts streamline processes, reduce bureaucracy, and promote transparency and efficiency in public administration.

• FinTech and Mobile Money: The rise of financial technology (FinTech) has transformed the financial landscape in Ghana. Mobile money services like MTN Mobile Money, Vodafone Cash, and AirtelTigo Money have gained widespread adoption, providing access to financial services for unbanked and underserved populations. Today, 59.7% of the population in Ghana has a mobile money account. One of the key drivers of Ghana's digital economy is mobile technology. Mobile penetration is high in Ghana, with over 40 million mobile subscriptions in the country in 2021 according to Statistica. 

• Digital Agriculture: Ghana's agricultural sector, a critical component of its economy, is experiencing the benefits of digital transformation. Innovative platforms and mobile applications, such as, farmerline, Smart and Sustainable Agri-Business (SSAB), and AgroCenta among others provide farmers with access to weather information, market prices, and best practices for farming. These technologies enable farmers to make informed decisions, optimise yields and enhance productivity. One project is helping Ghanaian cashew farmers use unmanned aerial vehicles (UAV) in an AI-powered disease-detection innovation. The UAVs collect data from the leaves, stems, and trunks of the cashew trees, allowing farmers to detect pest and disease symptoms before they become visible and lead to serious crop damage. Another project by Agri-Web uses AI to help smallholder farmers in Ghana predict post-harvest shortages and gluts. 

Ghana has also witnessed the emergence of a vibrant startup ecosystem and innovation hubs, fostering entrepreneurship and technological innovation. Organisations like the Meltwater Entrepreneurial School of Technology (MEST), iSpace Foundation, mPharma, and AgroCenta provide resources, mentorship, and funding opportunities for aspiring entrepreneurs and farmers. MTN Ghana has partnered with the Ministry of Communication and Digitalisation to begin construction of the first-ever Ghana ICT Hub in Accra, a $25 million project aimed at preparing the youth for better prospects in the global digital economy. 

THERE ARE SEVERAL OPPORTUNITIES TO ACCELERATE PROGRESS

AI and data analytics hold immense potential to drive Ghana's digital future. By leveraging AI technologies, businesses can automate processes, gain insights from data, and enhance decision-making. The application of AI in healthcare, education, and governance can lead to improved service delivery and better outcomes for citizens.

In addition, the growth of e-commerce in Ghana is poised to accelerate, driven by increasing internet penetration and changing consumer behaviours. Digital marketplaces can provide a platform for small businesses to reach a wider customer base and expand their operations. 

Embracing emerging technologies, fostering innovation, and strengthening digital infrastructure will be crucial in realising the full potential of digital transformation in Ghana. By continuing to invest in these areas, Ghana can position itself as a regional leader in the digital economy and create a more inclusive and prosperous society for its people.

These initiatives are nurturing the next generation of tech-driven solutions and propelling Ghana's digital transformation forward. 

ENSURING SUCCESS OF THE DIGITAL TRANSFORMATION AGENDA

While Ghana has made remarkable progress in its digital transformation agenda, several challenges still need to be addressed to ensure its success. 

A significant challenge lies in equipping the workforce with the necessary digital skills and promoting digital literacy among the population. Bridging the digital skills gap and ensuring that individuals have the knowledge and capabilities to effectively utilise digital technologies is essential for widespread adoption and utilisation. 

To address this, the government through the Ministry of Communications and Digitisation has partnered with the Tony Blair Institute for Global Change with support from Panoply Digital to train a selected number of civil service staff through the DigSMART pilot programme. It is envisaged that the DigSMART programme will be sustained by the government and rolled out to upskill more public sector and civil service staff across the country. 

A BRIGHT FUTURE AHEAD FOR GHANA

Ghana has made commendable progress in its digital transformation journey, leveraging technology to drive economic growth, improve public services, and empower its citizens. However, the future holds even greater opportunities for the country.

Gabriel Agbagba and Albert Tetteh are with Cliq Technology, Ghana country partner of Panoply Digital.