Mobile
communications have had a significant impact across society in Ghana, leading
to digital inclusion and, as a pioneering country in mobile financial services,
also driving financial inclusion. This blog explores the path towards
digitalization and how digitalization is a catalyst for sustainable growth.
Accelerated digital transformation driving societal
development
In
recent years, digitalization has happened at unprecedented speed, globally as
well as in Ghana. The COVID-19 pandemic
made remote collaboration and communication the norm. Remote or hybrid work and
virtual events have expanded the possibilities of operation, and to some extent
changed the way we live our lives, for instance by reversing the rural-urban
migration trend in many countries.
Studies
have shown that mobile technology has played a crucial role as a catalyst for
innovation and socio-economic development. There is a clear link between mobile
broadband penetration and GDP growth, with lower-income countries having the
potential to leapfrog in economic development by investing in mobile broadband
infrastructure.
Small
and Medium Enterprises (SMEs), often referred to as the engine of growth, is
also helping drive economic and sustainable development. By embracing digital
technologies, SMEs have become more agile and profitable, creating jobs in a
country where SMEs make up over 90percent of all businesses and contribute over
70percent of the GDP.
Furthermore,
technology also has the potential to play a crucial role in preventing further
climate change by enabling other industrial sectors to move towards a
low-carbon economy. According to Ericsson research, Information and
Communication Technology (ICT) solutions can enable a reduction of global
greenhouse gas emissions by up to 15 percent by 2030, while being responsible
for only 1.4 percent of the global carbon footprint.
In
Ghana, mobile connectivity and access to mobile broadband are experiencing
strong growth, but there is still a large part of the population using 2G and
3G technologies. Growing 4G and smartphone adoption is crucial for driving
digitalization, and giving access to advanced digital services and
applications. With 5G on the horizon, the eventual establishment of these
next-generation networks offers opportunities to deliver higher throughput at a
lower cost and energy consumption.
One
of the most important enablers to accelerate 4G adoption is smartphone
affordability. By having the right strategies to make 4G devices more
affordable, combined with the right digital services, mobile broadband uptake
will accelerate.
Mobile Financial Services: Empowering Financial
Inclusion
Ghana
is a pioneer in mobile financial services. Initially targeted at providing
banking services, from money transfer to micro-lending for the unbanked, mobile
telecom operators have become the largest channel for financial services and
the services offered are growing in sophistication. Mobile money generates
financial resilience and facilitates higher savings for households.
As
Mobile money electronically records all transactions, improving the security of
payments, it facilitates transparency and fosters the formalization of the
economy. With over 18 million active mobile money accounts, Ghana has seen a
remarkable reduction in the proportion of unbanked population from 60 percent
in 2014 to 32 percent in 2021, as reported by the World Bank Findex.
According
to the Bank of Ghana (BoG), the total value of mobile money transactions in the
first three months of 2023 hit GH¢411.5 billion, which is an increase of almost
69.1percent year-on-year. This demonstrates the strength that mobile money has
in the country and the region. Contrary to expectations, the transactions
continue to increase after implementation of the e-levy. Ericsson Wallet
Platform is enabling the leading mobile money service in Ghana, driving
financial inclusion and well-being.
Ghana's Tech Hub Potential
With
a young and vibrant population and a supportive government, Ghana has the
potential to become a technology leader in the coming years. Ghana's
universities have great technology-oriented programs, equipping students with
the skills needed for careers in technology. At Ericsson we are supporting this
development through the graduate program that we launched in 2021, providing
world-class learning and career development opportunities for tech talents of
Ghana.
To
fully realize the potential of future generations of the Ghanaian workforce it
is crucial to bridge the gender gap in science, technology, engineering, arts,
and mathematics (STEAM) related fields of career and education and at Ericsson
we are working closely with local schools and universities to sensitize girls
and women to the numerous STEAM-related careers that they can pursue. We also
continue to work with universities to advance female careers in engineering
through mentorship and by giving female engineering students internship and
national service opportunities.
Enabling Digitalization
To
enable digitalization, three foundational pillars are crucial: robust and
reliable network infrastructure, a conducive government and regulatory regime,
and the evolution and growth of ecosystems. Scalable and dynamic infrastructure
investments ensure the resilience and security of digital systems. Governments
can create favourable regulatory environments to encourage private sector
investment and provide ample, cost-effective spectrum for innovation.
Collaboration among policymakers, regulators, and industry stakeholders is
vital in outlining the digitalization roadmap.
Ericsson
is actively working with the mobile ecosystem in Ghana to facilitate an
environment where digitalization can flourish. A recent example is a workshop
that brought together mobile network operators, regulators, the Ministry of
Communications and Digitalization, and other industry players, with the aim of
promoting best practices in spectrum management to bridge Ghana's digital
divide. With the planned release of 5G spectrum and a strong commitment to
secure spectrum neutrality, Ghana is on its way toward future digital growth.
Investing
in modern and energy-efficient mobile broadband infrastructure is a catalyst
for digital transformation and sustainable growth. As Ghana embraces connectivity
and technological advancements, stakeholders from various sectors must
collaborate to realize Ghana's digital potential and the unprecedented
opportunities it holds. By empowering individuals, fostering innovation, and
creating an enabling environment, Ghana can shape its future as a leading
player in the digital era.
By: Fadi PHARAON (President of Ericsson Middle East and Africa)