Launch of the eTrade Readiness Assessment of Ghana (UNCTAD)

Arguments

Ghana has demonstrated a strong commitment towards digital economy and e-commerce development. However, it still lacks a national e-commerce strategy.

Supporting facts:

• Ghana’s Ministry of Communication has established the goal of making Ghana a leader in Africa’s digital economy by 2028.

• Despite technological advances, there’s no coordinated national strategy for e-commerce.

Topics: Digital Economy, E-commerce, National Strategy

Improvement is needed in Ghana’s ICT and digital infrastructure to ensure universal access and use.

Supporting facts:

• National average access to electricity in Ghana was 85% in 2021.

• Ghana’s internet penetration was at 76% by 2023, but 4G access is still limited at around 10%.

Topics: ICT Services, Internet Connectivity, Digital Infrastructure

The logistics and delivery services in Ghana present a key challenge for the development of e-commerce.

Supporting facts:

• Delivery and logistics are identified as bigger challenges for e-commerce than even connectivity.

• Ghana Post GPS’ digital addressing system received mixed reviews from private operators.

Topics: Trade Logistics, E-commerce, Delivery

There’s a need to increase digital skill development and access to financing for entrepreneurs in Ghana.

Supporting facts:

• Incubation programs have shown results in skill development for entrepreneurs.

• However, commercial banks in Ghana have a limited role in financing the local economy with an aggregated ratio of loans to deposits of more than 50%.

Topics: Digital Skills, Financing, Entrepreneurship

Report

Ghana has demonstrated a strong commitment towards developing its digital economy and e-commerce sector. The Ministry of Communication in Ghana has set a goal to make the country a leader in Africa’s digital economy by 2028. However, one major challenge that Ghana faces is the lack of a coordinated national strategy for e-commerce.

Without a comprehensive plan, the growth of the e-commerce sector is hindered. In terms of ICT and digital infrastructure, Ghana still has room for improvement to ensure universal access and usage. While the national average access to electricity reached 85% in 2021, there are still regions with limited electricity infrastructure.

Limited access to electricity hampers the ability of individuals and businesses to benefit from digital technologies. Additionally, while Ghana’s internet penetration reached 76% by 2023, 4G access remains limited at around 10%. This indicates the need for better internet connectivity to support the growth of digital services and bridge the digital divide.

The logistics and delivery services in Ghana present a key challenge for the development of e-commerce. Delivery and logistics are identified as bigger challenges for e-commerce than connectivity. Ghana Post GPS’ digital addressing system has received mixed reviews from private operators, suggesting the need for further improvements in this area.

Digital skill development and access to financing are crucial for the growth of entrepreneurs in Ghana. Incubation programs have shown positive results in developing digital skills, but the role of commercial banks in financing the local economy is limited. Enhanced access to financing options and support for entrepreneurs are needed to promote sustainable economic growth and job creation.

Despite improvements, achieving universal internet access in Ghana still faces significant barriers. High costs of internet packages, a digital divide between urban and rural areas, and the lack of electricity infrastructure in some regions contribute to this challenge. Overall, while Ghana has shown commitment towards developing its digital economy and e-commerce sector, there are challenges that need to be addressed.

These include the lack of a national e-commerce strategy, the need for improvements in ICT and digital infrastructure, challenges in logistics and delivery services, and the importance of digital skill development and access to financing for entrepreneurs. By addressing these challenges, Ghana can unlock the full potential of its digital economy, drive economic growth, and enhance the well-being of its citizens.

Arguments

The government of Ghana prioritizes digitalization as a tool for social and economic empowerment and a vehicle for economic growth

Supporting facts:

• Ghana’s 2008 digital agenda has resulted in various successful programs and initiatives

• The Ghana 2019-2024 Payment System Strategy, GoDigital, opened opportunities in the financial sector and facilitated financial inclusion

Topics: Digitalization, Economic growth, Social empowerment

Ghana is committed to expanding its digital economy and improving its ICT infrastructure and public sector digital platforms

Supporting facts:

• Ghana has embarked on the process of conducting an e-Trade Readiness Assessment with the assistance of UNCTAD

• Ghana established a National Steering Committee on e-commerce and digital trade to support technical assistance coordination, information sharing and inter-governmental coordination

Topics: ICT Infrastructure, Public sector digital platforms

E-commerce has the potential to advance Ghana’s economy and improve competitiveness of SMEs

Supporting facts:

• E-commerce can provide market exposure, facilitate absorption of new digital skills, and introduce business efficiency and resilience

Topics: E-commerce, Economy, SMEs

Report

The government of Ghana places a high level of importance on digitalisation as a tool to promote social and economic empowerment, with the ultimate goal of achieving economic growth. The nation has implemented various successful programmes and initiatives to support this agenda.

For instance, the Ghana 2019-2024 Payment System Strategy, known as GoDigital, has opened up new opportunities in the financial sector and facilitated financial inclusion. This initiative has played a crucial role in bringing previously unbanked individuals into the formal financial system, empowering them to access and participate in the economy.

Ghana is committed to expanding its digital economy and improving its information and communication technology (ICT) infrastructure and public sector digital platforms. In this regard, the country has embarked on the process of conducting an e-Trade Readiness Assessment, with the assistance of the United Nations Conference on Trade and Development (UNCTAD).

The purpose of this assessment is to evaluate Ghana’s preparedness to engage in e-commerce and digital trade. By focusing on improving its technological capabilities and creating a conducive environment for online business activities, Ghana aims to enhance its presence in the digital economy and boost economic growth.

It is evident that e-commerce plays a significant role in advancing Ghana’s economy and improving the competitiveness of small and medium-sized enterprises (SMEs). E-commerce offers numerous benefits, including market exposure, the facilitation of new digital skills, and the introduction of business efficiency and resilience.

By embracing e-commerce, Ghana seeks to leverage these advantages to drive economic development and increase the opportunities available to SMEs. Furthermore, Ghana’s support for the E-Trade Readiness Assessment demonstrates its endorsement of the Economic Community of West African States (ECOWAS) e-commerce strategy.

This endorsement signifies Ghana’s commitment to implementing and operationalising the ECOWAS e-commerce strategy across the sub-region. By actively participating in the readiness assessment and coordinating technical assistance, information sharing, and inter-governmental cooperation through the establishment of the National Steering Committee on e-commerce and digital trade, Ghana aims to contribute to the overall success of the ECOWAS e-commerce agenda.

In conclusion, the Ghanaian government recognises the potential of digitalisation and e-commerce to drive social and economic empowerment and foster economic growth. The country has implemented several successful initiatives, such as the GoDigital payment system strategy, in order to promote financial inclusion.

Ghana is also actively working towards expanding its digital economy and improving its ICT infrastructure and public sector digital platforms through the ongoing e-Trade Readiness Assessment. Additionally, e-commerce is viewed as a vital tool for advancing Ghana’s economy and enhancing the competitiveness of SMEs.

Ghana’s support for the E-Trade Readiness Assessment reflects its commitment to the operationalisation of the ECOWAS e-commerce strategy. Overall, these efforts demonstrate Ghana’s dedication to harnessing the benefits of digitalisation for sustainable development.

Arguments

Access to finance for e-commerce startups in Ghana depends on access to verifiable data

Supporting facts:

• A digitization of the retail sector has led to an influx of verifiable data that can be used to credit score SMEs

• Credit scoring allows banks to confidently offer loans, knowing they’ll be able to recover them

Topics: e-Commerce, Startups, Finance, Access to Information, Commerce

Ghana should leverage its position as the host of the AFCTA Secretariat to drive innovation for the entire African continent

Supporting facts:

• Ghana hosts the AFCTA Secretariat, placing it in a strong position to drive pan-African innovation

• Kingsley’s company thinks of creating a platform not just for Ghana, but for all of Africa

Topics: Ghana, Innovation, E-commerce, Africa

Innovation comes from the private sector, hence their involvement is crucial

Supporting facts:

• Monica Rubiolo emphasizes the need for collaboration between private and public sector and highlights how innovation is driven by the private sector

Topics: Innovation, Private sector

Aim for large scale thinking over pilot programs, to drive regional growth

Supporting facts:

• Monica Rubiolo suggests to focus on scale instead of pilots and work region-wise so that a solution implemented in one place can be replicated in another place

Topics: Regional Growth, Large scale projects

Issues of data ownership and data security when working with small producers.

Supporting facts:

• MSMEs understand that data is critical to their businesses, hence it should be protected and at the same time can be shared responsibly with banks, fintechs or tax authorities to grow their businesses

Topics: Data ownership, Data security

Ghana is at a critical stage in its data infrastructure and regional cohesion

Supporting facts:

• Ghana and Africa as a whole have improved in their data infrastructure

• They have also improved in regional cohesion with AFCTE and Pan-African payment system

Topics: Data Infrastructure, Regional Cohesion, AFCTE, PAPS

Inclusion of other policies such as AFCTE and PAPS in building e-commerce agenda

Supporting facts:

• AFCTE creates one zone for trade

• Pan-African payment system helps in trading across borders without currency conversion

Topics: E-commerce, Trade, Policy inclusion, AFCTE, PAPS

Emphasizing on the role of MSMEs for the country’s economy

Supporting facts:

• MSMEs run the retail, not the big corporates

• Ghana is run by retailers in the deep markets

Topics: MSMEs, Economy, Retailers

Report

Access to finance for e-commerce startups in Ghana is closely tied to the availability of verifiable data. The digitisation of the retail sector has resulted in a significant influx of data, which can now be used for credit scoring purposes.

This has enabled banks to offer loans with confidence, knowing that they will be able to recover them. By leveraging this verifiable data, e-commerce startups in Ghana can improve their access to finance and grow their businesses. Furthermore, Ghana’s position as the host of the AFCTA Secretariat presents a unique opportunity to drive innovation for the entire African continent.

The AFCTA Secretariat gives Ghana a strong platform to influence and shape the future of pan-African innovation. By taking advantage of this position, Ghana can drive collaborative efforts and foster innovation across Africa, ultimately benefiting the entire region. The private sector plays a crucial role in driving innovation.

The private sector, with its understanding of retailers’ needs and desires, has been at the forefront of innovation in Ghana. This understanding has led to successful initiatives such as mobile money, which has revolutionised digital payments in the country. Therefore, collaboration between the private and public sectors is vital to drive innovation and achieve economic growth.

It is important to emphasise large-scale thinking over pilot programs to drive regional growth. By focusing on scalable solutions and implementing them region-wise, successful initiatives can be replicated in other areas. This approach ensures that the benefits of these initiatives can reach a wider audience, contributing to regional economic growth and development.

When working with small producers, issues of data ownership and data security become important considerations. Micro, Small, and Medium Enterprises (MSMEs) recognise the critical role that data plays in their businesses and understand the need to protect it. Simultaneously, they also see the potential benefits of responsibly sharing their data with banks, fintechs, or tax authorities to facilitate business growth.

Striking a balance between data ownership, data security, and responsible data sharing is crucial for supporting the growth of MSMEs. Education about data sharing is essential in helping MSMEs understand how it can benefit them. By providing them with the necessary knowledge and tools, MSMEs can make informed decisions about sharing their data.

This understanding can lead to reduced taxation and enable them to grow their businesses effectively. Ghana is currently at a critical stage in its data infrastructure and regional cohesion. The improvement of data infrastructure and the establishment of mechanisms such as the AFCTA and the Pan-African payment system demonstrate Ghana’s commitment to enhancing regional connectivity and cooperation.

These advancements pave the way for increased trade and e-commerce opportunities within Africa. Inclusion of policies such as the AFCTA and the Pan-African payment system in building the e-commerce agenda can enhance the effectiveness and efficiency of cross-border trade. The AFCTA creates a unified trading zone, while the Pan-African payment system facilitates seamless transactions without the need for currency conversion.

By integrating these policies into the e-commerce agenda, Ghana can further promote economic growth and development in the region. Emphasising the role of Micro, Small, and Medium Enterprises (MSMEs) is vital for Ghana’s economy. It is the MSMEs, rather than big corporations, that run the retail sector in Ghana, especially in the deep markets.

Recognising and supporting the contributions of MSMEs is essential for a thriving and inclusive economy. In conclusion, access to verifiable data is crucial for e-commerce startups in Ghana to secure finance. Ghana’s position as the host of the AFCTA Secretariat provides an opportunity to drive innovation across Africa.

Collaboration between the private and public sectors is necessary for driving innovation, and large-scale thinking can lead to regional growth. Issues of data ownership and security must be addressed when working with small producers. Education about data sharing can benefit MSMEs.

Additionally, Ghana is at a critical stage in its data infrastructure and regional cohesion, and policies such as the AFCTA and the Pan-African payment system can support the e-commerce agenda. Emphasising the role of MSMEs is vital for Ghana’s economy and overall development.

Arguments

The importance of private sector-driven innovation and digitization of commerce in Africa

Supporting facts:

• Access to verifiable data is vital for digitizing commerce, which can be achieved through digitizing retailers’ record-keeping methods.

• Ghana’s fintech infrastructure has made progress in facilitating the collection of capital by financial institutions.

Topics: Digital transformation, Access to data, Private sector development, E-commerce

Cécile Barayre supports the idea of doing e-readiness assessment at a regional level

Supporting facts:

• Such an assessment has been done for the ECOWAS

• They are looking at other regions depending on the interest

Topics: e-readiness assessment, cross-border ecosystem, e-commerce

Cécile Barayre thanks the team involved in the year’s work

Supporting facts:

• Specifically mentioned team members: Martine, Tefa, Ina

• She also recognized the focal points of other e-readies: Mauritania, Madagascar, and Tunisia

Topics: team recognition

Report

Access to verifiable data is crucial for the digital transformation of commerce in Africa. This can be achieved by digitising retailers’ record-keeping methods, ensuring accurate and reliable data is available for analysis and decision-making. Ghana’s fintech infrastructure has made significant progress in facilitating the collection of capital by financial institutions, contributing to the growth and development of the private sector.

Private sector-driven innovation and digitisation of commerce play key roles in Africa’s economic progress. By embracing digital technologies and leveraging innovation, businesses can improve efficiency and expand their reach in local and international markets. It is vital to create an enabling environment that supports the digitisation of commerce, allowing African merchants to thrive in a digital economy.

One crucial aspect is the creation of a platform enabling every African merchant to have a digitised e-commerce storefront, connected to all payment gateways. This promotes accessibility and inclusivity, empowering merchants to tap into a wider customer base and transact securely.

Ghana’s position as the host of the African Continental Free Trade Area (AfCFTA) Secretariat provides a unique opportunity to drive innovation not only within the country but also across the entire continent. Its regional leadership enhances its potential to shape commerce and digital infrastructure in Africa.

Furthermore, Cécile Barayre supports the idea of conducting e-readiness assessments at a regional level. Assessments have already been done for the Economic Community of West African States (ECOWAS), with interest in expanding this approach to other regions. This improves understanding of the digital readiness of different regions and facilitates targeted interventions to enhance their digital capabilities.

In conclusion, access to verifiable data and the digitisation of commerce are paramount for Africa’s economic growth. Through private sector-driven innovation and the establishment of digital infrastructure, African countries can unlock significant economic opportunities for businesses and communities. Ghana’s fintech progress and its hosting of the AfCFTA Secretariat position it as a catalyst for innovation and progress on the continent.

Regional e-readiness assessments provide valuable insights for strategic planning and implementation. The collaborative efforts of individuals like Cécile Barayre and dedicated teams contribute to the ongoing work towards a digitally empowered Africa.

Arguments

Switzerland provides support to Ghana through its Economic Development Cooperation in the important area of digitalization.

Supporting facts:

• Ghana is a priority country for Switzerland’s Economic Development Cooperation.

Topics: Economic Development Cooperation of Switzerland, Digitalization

The E-Readiness Assessment findings highlight the transversal dimension of digitalization for Ghana’s development.

Supporting facts:

• Assessment highlights the importance of strengthening the government systems such as fintech, digital systems related to taxpayers, etc.

Topics: E-Readiness Assessment, Digitalization

Current macroeconomic environment in Ghana makes it difficult to make the necessary investments for digitalization.

Topics: Macroeconomic environment, Investment, Digitalization

Private-public sector collaboration is crucial for innovation

Supporting facts:

• Innovation comes from the private sector

• Private sector needs to be a part of the conversation

Topics: Digitalization, Innovation, Private-public collaboration

Need to think beyond pilots and scale up

Supporting facts:

• What works in Ghana can be replicated in Tanzania, Mozambique, etc.

• There are challenges with cross-border and trade facilitation

Topics: Regional cooperation, Scale, Trade facilitation

Data ownership and security are crucial issues when dealing with smallholders and producers

Topics: Data ownership, Data security, Transparency

Monica Rubiolo agreed with Kingsley Abrokwah’s statement by expressing that she supports integrating other policies across the ecosystem besides building an e-commerce for Ghana.

Supporting facts:

• Kingsley Abrokwah highlighted the importance of including different strategies while building e-commerce for Ghana and focusing on MSMEs and retailers.

Topics: E-commerce agenda in Ghana, AFC, FTA

Monica Rubiolo proposes to conduct similar assessment at a regional level to identify obstacles in cross-border collaborations.

Topics: Regional cross-border collaborations, E-readiness assessment

Report

Switzerland is providing support to Ghana through its Economic Development Cooperation, specifically in the area of digitalization. This assistance aims to promote the adoption of digital technologies and capabilities in Ghana’s development. The E-Readiness Assessment findings reinforce the importance of digitalization for Ghana and highlight the need to strengthen government systems in areas such as fintech and digital systems related to taxpayers.

However, the current macroeconomic environment in Ghana presents challenges for investing in digitalization. Financial constraints and economic instability may hinder Ghana’s ability to fully embrace digital technologies and infrastructure. On a positive note, the government is establishing coordination mechanisms between the public and private sectors.

This collaborative approach allows for the synchronization of efforts and resources, facilitating a more comprehensive and effective implementation of digitalization initiatives. Inter-ministerial coordination is identified as a priority in the E-Readiness Assessment for developing a digitalization strategy. This emphasizes the importance of streamlining efforts across different government departments to ensure a cohesive and integrated approach to digital transformation.

Private-public sector collaboration is crucial for fostering innovation. Involving the private sector in discussions and decision-making processes related to digitalization allows for the exchange of expertise, resources, and ideas, leading to more innovative solutions. Regional cooperation and scaling up digitalization initiatives are also significant factors.

Replicating successful practices from Ghana in countries like Tanzania and Mozambique is possible, but challenges with cross-border and trade facilitation need to be addressed. Data ownership and security are crucial, especially for smallholders and producers. Ensuring transparency and safeguarding data are essential for building trust and facilitating effective digitalization processes.

Monica Rubiolo, a key advocate, emphasizes the importance of regional solutions, private-public collaboration, and addressing data ownership and security. Scaling up digitalization efforts and integrating other policies alongside building e-commerce for Ghana are encouraged to create a holistic and sustainable ecosystem.

Rubiolo proposes conducting a regional-level assessment to identify obstacles in cross-border collaborations. This approach would facilitate a better understanding of challenges and enable the formulation of targeted strategies to enhance regional cooperation. In conclusion, Switzerland’s support, along with the recommendations from the E-Readiness Assessment and advocates like Rubiolo, highlights the need for comprehensive strategies, collaboration, and addressing financial and economic constraints.

By implementing these measures, Ghana can achieve significant progress in digitalization and drive socio-economic development.

Arguments

Ghana has demonstrated commitment towards e-commerce and the digital economy

Supporting facts:

• Ghana’s e-trade readiness assessment reflects the government’s committed efforts.

• Significant investments have been made in infrastructure, payment solutions, and digital addressing systems in Ghana.

Topics: E-commerce, Digital economy, Ghana

Ghana needs to develop a national e-commerce strategy to capitalize on its potential.

Supporting facts:

• A National Steering Committee on E-Commerce and Digital Trade was created.

• The strategy should align with the capabilities and needs of the Ghanaian people, including the private sector.

Topics: E-commerce, Digital economy, Ghana

Report

Ghana has shown a strong commitment to e-commerce and the digital economy, with significant investments in infrastructure, payment solutions, and digital addressing systems. These efforts demonstrate the government’s dedication to creating an environment conducive to e-commerce development in the country.

The launch of Ghana’s e-trade readiness assessment is an important step in this process. However, it should be noted that this assessment is just the beginning, not the end. The next immediate step is the development of a national e-commerce strategy, as recommended in the assessment.

This strategy will provide a roadmap to guide Ghana’s efforts and maximize its potential in e-commerce. Continued partnership with the United Nations Conference on Trade and Development (UNCTAD) and the e-trade for all partnership group is encouraged. These partnerships can offer valuable expertise and resources to support Ghana’s e-commerce development initiatives.

When developing the national e-commerce strategy, it is essential to ensure that it aligns with the capabilities and needs of the Ghanaian people, including the private sector. By engaging with the private sector, the strategy can be designed to encourage their active participation and leverage their expertise.

This collaboration will enable Ghana to create an environment that promotes innovation and drives economic growth through e-commerce. Overall, Ghana’s commitment to e-commerce and the digital economy is evident through its investments in infrastructure and the launch of the e-trade readiness assessment.

By developing a comprehensive national e-commerce strategy and leveraging partnerships with organizations like UNCTAD, Ghana can establish itself as a leader in e-commerce and fully capitalize on the opportunities it offers.