Opinions of Monday, 28 October 2024

Columnist: Awudu Razak Jehoney

Is digitalisation a policy or an inevitable phenomenon?

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Preamble:

In the 1950s, the evolution of computers, a variety of data formats were converted into computer-friendly 1s and 0s, marking the beginning of digitisation. This digitisation paved the way for the digitalisation revolution the world is currently enjoying. In his “Global Village work, Marshall McLuhan, stated that “technology has turned the World into a global village.”

The flagbearer of the ruling New Patriotic Party (NPP) Dr. Mahamudu Bawumia has on numerous occasions presented himself as a champion of digitalisation in this country. The Vice President is currently riding on the altar of digitalisation going into the upcoming 2024 election as his policy.

On the other hand, the opposition National Democratic Congress (NDC) disagrees with the Vice President’s claim of being the originator of digitalisation. The question is, is digitalisation actually a policy that one party can lay a claim to or it a phenomenon that is inevitably happening due to the times we are in? This article addresses this question with facts and evidence providing historical background.

Digitalisation has become a global phenomenon, revolutionising industries, an essential driver of economic growth, innovation, and inclusivity, as well as reshaping economies. All African countries including Ghana has embraced this transformative journey, leveraging technology to drive innovation, enhance efficiency, and unlock new opportunities across various sectors.

History of digitalisation 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 the African continent, and with the rest of the world. As far back as in the early 2000s, intense efforts at digitalisation began in this country, this was after a series of information and communication technology (ICT)-related reforms that date back to the 1980s.

Digitalisation in this country 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 (ADP) directed at restructuring the telecoms sector and repositioning it as a major vehicle for socio-economic transformation and national growth.

In 1993, Ghana registered its first commercial internet domain ‘GH.COM’, and by 1995, in collaboration with other organisations. Ghana 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.

Transformation of the Digital Sector:

Since the 1990s, Ghana has made significant strides in enhancing its digital infrastructure. This country has witnessed an 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.

The Accra Digital Centre:

The Accra Digital Centre project started in 2011 and financed by the World Bank and the Rockefeller Foundation, it is a collection of 12 old warehouses of the Public Works Department, which have been renovated with each of the buildings occupying 735 square metres. It makes a total of 8,820 square metres.

In November 2016, the then President John Dramani Mahama and the current flagbearer of the NDC inaugurated the Accra Digital centre which costs $8.3 million with a call on Ghanaians to accept reforms in all sectors for national development.

Digital Finance Landscape:

The emergence of digital financial services and inclusion in Ghana arguably began when the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS) was established in 2007. As a foundation for financial inclusion, GhIPSS, which is an interbank payment and settlement company, was tasked with creating and managing interoperable payment system infrastructure for banks and other financial institutions.

As a results of the massive investment into infrastructure in the 1990s and 2000s to enhance digitalisation, in April 2008, GhIPSS rolled out a novel national switch and smart card payment system dubbed e-Zwich.9 E-Zwich is a biometric smart card connected to all financial institutions in Ghana that allows users to deposit, withdraw, and transfer money. The card was targeted at the unbanked in Ghana, who amounted to a staggering 80 percent of the country’s population at the time. In the 1990s, in 2009, MTN launched the first mobile money service in partnership with universal banks, followed by Airtel Money in 2010 and Tigo Cash in 2012.

As a result of accumulated efforts of previous regimes since the 1980s, 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. Today, there is no single country in the World, without digitalisation, this makes it a phenomenon not a policy.

On the above adduced evidence, it is evident that, digitalisation is a dynamic phenomenon that evolves as times progresses, it is not a policy for Dr. Mahamudu Bawumia and the NPP to claim credit for introducing. Digitalisation is a process and not an event, it will not end as long as mankind exists, it is fair to say every government has definitely contributed to enhancing the phenomenon as and when there is a new innovative systems required to improve it. However, the real adopters not originators of digitalisation in this country is the NDC and late former President Jerry John Rawlings.

Conclusions

Digitalisation is not a policy but a fundamental phenomenon that has redefined the way societies, businesses and governments operate around the world, and Africa has been no exception to this technological revolution. Over the last two decade, all African countries have experienced a significant impact due to the massive adoption of digital technologies in various sectors and this is reflected in major African governments and funding programmes at both national and continental level, which have been designed to help Africa’s citizens to take advantage of the digital revolution.