The government of Ghana has embarked on an initiative to formulate and implement local content regulations specifically for the telecommunications industry, with an aim to bolster reliance on indigenous resources and to give precedence to Ghanaian telecom enterprises. At a notable event held in Accra, the capital city of Ghana, Ursula Owusu Ekuful, who serves as the Minister for Communications and Digitalization, made the announcement regarding these legislative developments.
Minister Ekuful articulated, “We are currently in the midst of crafting local content legislation tailored to the telecommunications industry. As a part of this initiative, we have mandated that a certain spectrum of managed services within the telecom sector be exclusively earmarked for local companies in Ghana.”
The core intent behind enacting local content laws is to preferentially promote the utilization of domestically-produced goods, services, and labor force, which is intended to stimulate the enhancement of local content across the industry to which the legislation is applicable.
With respect to Ghana, the implementation of such legislation is anticipated to pave the way for the nation to independently oversee its digital infrastructure, applications, and services. It also aims to diminish the country’s dependence on international consultants and contractors, who are often associated with higher costs. Minister Ekuful criticized this dependency as “unhealthy” and emphasized the presence of skilled and capable local alternatives within the nation.
Minister Ursula Owusu Ekuful underscored a common occurrence within the telecommunications sector: a significant number of international corporations that secure contracts tend to sub-contract the work to local Ghanaian companies. Despite handling the bulk of the operations, these domestic companies often end up with only a fraction of the profits, while the lion’s share is retained by the international corporations that initially won the contracts.
Minister Ekuful called into question the prevailing assumption that foreign entities are inherently more capable than their local counterparts. Asserting the competitive abilities of domestic companies, she advocated for a stronger support system for Ghanaian products and businesses, challenging the notion of foreign superiority and championing local enterprise.
In line with this advocacy for local content, it’s worth noting that Ghana had previously taken a similar stance in another significant sector of its economy. Back in 2013, the country enacted a local content law directed at its burgeoning petroleum industry. This law was aimed at prioritizing Ghanaian goods and services, in a bid to increase in-country spending. Furthermore, the law was designed to ensure that employment opportunities were localized, thereby amping up the hiring and utilization of Ghanaian talent, and thus promoting indigenous capabilities in the petroleum sector.
Additionally, Minister Ursula Owusu Ekuful has been a strong proponent of not only enhancing the use of local telecommunications services in Ghana but also advocating for their coordinated advancement throughout the African continent.
During a session held in March with the parliament, Minister Ekuful disclosed that while SpaceX’s Starlink is under consideration for obtaining an operational license to supply internet services in Ghana, she simultaneously underscored the importance of fostering local dependency. In this vein, she argued for the activation and utilization of the Regional Africa Satellite Company (RASCOM), suggesting a more collaborative approach within the continent.
Minister Ekuful highlighted the benefits that could be reaped from a unified African strategy, particularly in the telecommunications arena, by stating, “We must also invest in operationalizing RASCOM instead of each country pursuing its telecommunications infrastructure independently.” Her concluding remarks called for a collective effort to catalyze a continent-wide enhancement in telecommunication services, tapping into shared regional resources to reduce over-reliance on external entities and to bolster self-sustenance across African nations.
