Digitalization as a catalyst for sustainable growth in Ghana

Mobile communications have had a signi cant impact across society in Ghana, leading to digital inclusion and, as a pioneering country in mobile nancial services, also driving nancial 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 sus- tainable development. By embracing digital technologies, SMEs have become more agile and pro table, 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 o ers opportunities to deliver higher throughput at a lower cost and energy consumption.

One of the most important enablers to accelerate 4G adoption is smartphone a ordability. By having the right strategies to make 4G devices more a ordable, combined with the right digital services, mobile broadband uptake will accel-

By Fadi PHARAON

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Mobile Financial Services: Empowering Financial Inclusion

Ghana is a pioneer in mobile nancial 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 nancial services and the services o ered are growing in sophistication. Mobile money generates nancial 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