Ghana Digital Innovation Week: Innovation and Economic Growth
Ghana Digital Innovation Week (GDIW) is an event held in Accra from 22-26 November by GIZ, Make-IT in Africa and the Digital Transformation Centre Ghana under the theme “mobilizing collective action and investment to catalyse growth in Ghana's digital innovation ecosystem.” It has brought together public, private and third sector stakeholders to deepen the conversation around Ghana’s innovation ecosystem and establish concrete actions to be taken. Our consultant, Kobi Annan, presented at and took part in a panel exploring the role of innovation on Africa’s economic growth, with a particular spotlight on Ghana. The panel discussion was lively, engaged and brought out key issues and action points, highlighted below.
Significance – Three key takeaways
There is more to innovation than just technology or fintechs: When speaking of innovation in Ghana, most people think immediately of fintech solutions such as mobile money, mobile interoperability and the various payment systems companies that have recently received funding[1]. With GHS 80 billion (USD 13.0 billion) and GHS 2.24 billion (USD 365 million) transacted across mobile money and interoperability platforms in October of 2021 alone, it is easy to see why such focus is placed on fintech solutions and payment services. However, Isobel Afful-Mensah of Yaro Capital reminded the audience that “innovation does not have to be purely technological; you can innovate the way in which you structure your business plan and that can equally have an impact.”
Collaboration and a shifting mindset are key: Of the approx. 110,000 businesses registered in Ghana in 2018, around two-thirds are sole proprietorships. Many of these Ghanaian startups are unwilling to collaborate for a fear of having their concept copied or stolen. This is problematic as it translates even into dealings with potential investors[2]. The way in which innovation happens must also be examined. Felix Darko of MEST Express suggested that more emphasis must be put on problem solving and value addition – “you can create a machine that makes your dinner for you but what actual value does that add?”
Government needs to establish intentional policies that allow for innovation and skills development: Joshua Opoku Agyemang of the Internet of Things Hub told the audience that “the fourth industrial revolution is already here so, innovate or die!” pointing to the need for education providing new, transferable skills, problem solving and government funding for research and development.”
Outlook – Positive Steps
The government has shown a willingness to support entrepreneurial activities through schemes such as the newly announced 3-year, GHS 10 billion YouStart support program. Whilst regulation has primarily focused on financial services innovations, jt has been able to provide increasingly robust frameworks for stakeholders in this space (regulators, providers, and customers). One example is the Payment Systems and Services Act of 2019 that regulates electronic money issuers and has been well received.
That said, the consensus of the panel was that there needs to be more collaboration between academia, industry, and government to allow for innovations that solve problems. We are starting to see such links happening (again in the fintech space) with programs such as the Bank of Ghana’s financial services sandbox pilot, the Kosmos Innovation Center and indeed, MEST Express.
We would like to thank the organisers of GDIW and Blue Space Innovation Hubs for their facilitation of this discussion.
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[1] For example, Zeepay in June 2021
[2] It also translates into an overwhelming preference for debt over equity meaning that other skills from investors and their networks are missed out on.
*Photo credit - Kwame Gyamfi
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