Africa BriefingAfrica Briefing

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Institut Pasteur de Dakar and Mastercard Foundation  announce Unprecedented Partnership to Expand Workforce for Vaccine Manufacturing in Africa

    June 2, 2023

    Ecobank launches ‘Ecobank Single Market Trade Hub’ to facilitate intra-African trade

    June 1, 2023

    Kenya’s President Ruto announces visa exemption for African business travellers in bid to boost intra-Africa trade

    June 1, 2023
    Facebook Twitter Instagram
    • Home
    • About Us
      • Profile
      • The Team
      • Advertise
      • Media Kit
    • Contact Us
    • Regions
      • Ghana
      • Nigeria
      • Kenya
      • South Africa
      • Europe
      • United Kingdom
      • USA (North America)
    Trending
    • Institut Pasteur de Dakar and Mastercard Foundation  announce Unprecedented Partnership to Expand Workforce for Vaccine Manufacturing in Africa
    • Ecobank launches ‘Ecobank Single Market Trade Hub’ to facilitate intra-African trade
    • Kenya’s President Ruto announces visa exemption for African business travellers in bid to boost intra-Africa trade
    • Russia and Ukraine engage in diplomatic battle for African support amid Ukraine conflict
    • Ugandan president defends controversial anti-LGBTQ law, defying Western criticism
    • Zimbabwe parliament passes law criminalising government criticism ahead of elections
    • Senegal opposition leader acquitted of rape charges but sentenced for corruption in blow to presidential aspirations
    • EU explores partnerships with African nations to secure battery minerals supply, aims to diversify away from China
    0 Shopping Cart
    Facebook Twitter YouTube LinkedIn
    Africa BriefingAfrica Briefing
    Resources
    Support Us
    • News
    • Politics
    • Business
    • Energy
    • Technology
    • CryptoTech
      • Crypto News
      • Startups & Companies
      • Crypto Currencies
      • DeFi
      • Metaverse
      • NFTs
    • More
      • Videos
      • Opinion
    • Magazine
    Africa BriefingAfrica Briefing
    Home » Ghana’s ICT sector records double-digit growth
    Featured

    Ghana’s ICT sector records double-digit growth

    Editorial StaffBy Editorial StaffOctober 13, 2016No Comments0 Views
    Facebook Twitter WhatsApp Telegram
    Share
    Facebook Twitter Telegram WhatsApp

    DESPITE a broader slowdown in the economy, Ghana’s ICT sector has seen high double-digit growth over the past year, supported by new infrastructure and value-added mobile services.

    Growing penetration helped the ICT sector outpace broader economic growth, according to data issued by the Ghana Statistical Service late June. While GDP expanded by 4.9 percent year-on-year (y-o-y) in the first quarter of this year, the ICT sector grew by about 18.8 percent.

    This represents a dramatic acceleration from the fourth quarter of last year, when the sector expanded by 5.2 percent y-o-y, compared to 4.9 percent GDP growth.

    This significant increase in the growth rate is all the more impressive in light of the challenges facing the country’s economy, including downward pressure on the cedi, a fiscal deficit and a drop in prices for some of Ghana’s key export commodities.

    According a report by the Oxford Business Group (OBG), the growth in the ICT sector over the past year has been supported in large part by extensive infrastructure investment, with expanding fibre-optic corridors providing a solid backbone to extend reach to secondary cities and smaller communities.

    The $38 million Eastern Corridor fibre-optic project, launched in 2013, was completed last year by French telecoms equipment company Alcatel-Lucent. Spanning roughly 800 km, the corridor connects Ho in the Volta region to Bawku in the Upper East Region, facilitating internet access to around 120 communities.

    Work on the accompanying Western Corridor fibre-optic project has begun and is expected to be completed within the year, according to President John Dramani Mahama.

    The improved access brought about by these and other infrastructure build-outs will drive continued growth in the industry, boosting connectivity and transfer speeds, according to Amar Deep Singh Hari, CEO of IT solutions provider IPMC Ghana.

    ‘The laying of the Western Corridor fibre-optic cable is assisting the ICT sector by allowing data transfer to be supported and improving data penetration,’ he told OBG.

    Ken Ansah, CEO of broadband service provider KNET, also underscored the importance of these projects for rural connectivity.

    ‘To date, ICT infrastructure has been highly concentrated in a few large cities, and distribution to homes is expensive,” he told OBG. “In addition to developing the national fibre-optic backbone, secondary and tertiary links that extend the reach to a wider swathe of the country will be crucial.’

    The growing reach of ICT is expected to yield dividends in the broader economy, Mahama said in mid-June.

    ‘The availability of broadband connectivity is expanding significantly,’ he said at the opening of the second Africa Mobile and ICT Expo. ‘The opportunities this offers in creating new businesses are numerous. With massive development by software developers, relevant local content will drive demand and more businesses would soon begin to transform the ideas into value in the market.’

    Meanwhile, Jonathan Tawiah, managing director of Ostec IT, points to the importance of developing local expertise to meet the needs of the country’s expanding ICT sector.

    ‘The entire sector is moving pretty fast in terms of technology adoption. This is in part because universities in Ghana are doing much better at producing qualified graduates capable of handling sector demands. Ghanaians can now be recruited locally for middle-ranking engineering positions, which is an improvement from before, when large amounts of money were spent on training,’ he said.

    Activity in the sector is also being supported by the rollout of new value-added services in the mobile telecoms sector.

    The country’s six operators have faced softening average revenue per user rates in recent years, driven by a high level of competition and slowing voice usage. To improve incomes, providers have sought to expand data products and services for customers.

    A key area for growth in this segment is the financial services sector, according to Kwaku Sakyi-Addo, CEO of the Ghana Chamber of Telecommunications. Although mobile money transfers and payment are already well established – having been launched in 2009 – there is strong potential for deeper penetration and new products.

    ‘Mobile money is growing at a phenomenal rate, with the volume and value of transactions increasing several-fold,’ Sakyi-Addo told OBG. ‘Still, there is more room for growth in areas such as salaries, school fees, levies, charges, ports, Customs and registrations. The whole area of citizen-to-government payments, and vice-versa, is waiting to be explored. Ghana is in a position to leap from cash directly to mobile money, bypassing credit cards, which are not common.’

    The number of mobile money account holders in Ghana doubled last year, according to the World Bank, with 17 percent of the adult population now subscribing to electronic financial services.

    Although this lags far behind Kenya, where the M-Pesa mobile money programme – the largest in the country – covers more than two-thirds of the adult population, penetration could increase further in the coming years, as Ghana has strong indicators for uptake. Some 92 percent of adults have the necessary ID to open an account, and 91 percent already own a mobile handset. This compares to 74 percent and 72 percent handset penetration in Kenya and Tanzania, respectively.

    As the number of account holders has increased, so too has the value of transactions. According to data issued in mid-June, the combined value of mobile money transfers was up more than 100 percent y-o-y in the first quarter of the year at GHS13.7bn ($3.5bn).

    Growing acceptance of mobile finance will drive both an increase in handset sales and data usage, supporting the development of more sales apps and programmes, as well as financially focused business platforms and services.

    Share. Facebook Twitter Telegram WhatsApp

    Related Posts

    Liquid Intelligent launches new fibre route connecting East and West Africa, enhancing digital connectivity

    May 31, 2023

    UNESCO unveils new AI roadmap for classrooms

    May 30, 2023

    Global tech leaders show support for Africa’s digital transformation at inaugural GITEX Africa

    May 29, 2023
    Add A Comment

    Comments are closed.

    Top Posts

    Sex tourism: The Gambia is fed up with UK grandmothers hunting for toy boys

    September 19, 20223,717

    Op-Ed: Qatar World Cup 2022 – prejudice, coordinated attacks and Western grandstanding

    November 4, 20222,445

    Ghanaian architect of UK’s Black History Month honoured by prestigious British university

    December 12, 20221,473

    Nigerian appointed director of UN disarmament

    October 25, 20221,144
    Don't Miss
    News

    Institut Pasteur de Dakar and Mastercard Foundation  announce Unprecedented Partnership to Expand Workforce for Vaccine Manufacturing in Africa

    By Editorial StaffJune 2, 202300

    DAKAR, Senegal, 2 June 2023,-/African Media Agency (AMA)/- The Institut Pasteur de Dakar (IPD) and the…

    Ecobank launches ‘Ecobank Single Market Trade Hub’ to facilitate intra-African trade

    June 1, 2023

    Kenya’s President Ruto announces visa exemption for African business travellers in bid to boost intra-Africa trade

    June 1, 2023

    Russia and Ukraine engage in diplomatic battle for African support amid Ukraine conflict

    June 1, 2023
    Stay In Touch
    • Facebook
    • Twitter
    • YouTube
    • LinkedIn
    About Us
    About Us

    AfricaBriefing is a monthly magazine designed to provide news and information on Africa to Africans at home and abroad, and the wider global audience that has a committed interest in the continent’s political, economic and social developments.

    Facebook Twitter YouTube LinkedIn
    Our Picks

    Institut Pasteur de Dakar and Mastercard Foundation  announce Unprecedented Partnership to Expand Workforce for Vaccine Manufacturing in Africa

    June 2, 2023

    Ecobank launches ‘Ecobank Single Market Trade Hub’ to facilitate intra-African trade

    June 1, 2023

    Kenya’s President Ruto announces visa exemption for African business travellers in bid to boost intra-Africa trade

    June 1, 2023
    Most Popular

    Sex tourism: The Gambia is fed up with UK grandmothers hunting for toy boys

    September 19, 20223,717

    Op-Ed: Qatar World Cup 2022 – prejudice, coordinated attacks and Western grandstanding

    November 4, 20222,445

    Ghanaian architect of UK’s Black History Month honoured by prestigious British university

    December 12, 20221,473
    © 2023 AfricaBriefing. Designed by KMG.

    Type above and press Enter to search. Press Esc to cancel.

    Privacy Policy & Cookie Management
    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies. Read more: Read More
    Do not sell my personal information.
    Cookie SettingsAccept
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT