Ghana DPI enabling startups to boost financial inclusion: analysis

The development of digital public infrastructure (DPI) in Ghana such as the implementation of a digital identity system has helped boost digital innovation and entrepreneurship efforts, leading to a surge in startups.

This is according to a report that delves into the role of DPI in the West African country’s startup ecosystem. It was first published by the Ghana Innovation Journal as the Ghana Startup and Innovation Ecosystem Report 2023.

The report notes that because startups are playing a key role in buoying the country’s economy, the implementation of DPI projects is a key factor in enabling “entrepreneurs to innovate, scale, and compete globally.”

It says that the putting in place of a digital ID system (the Ghana Card) and a digital payments platform such as a mobile money interoperability system introduced in 2028 has paved the way for the emergence of several tech startups. The report mentions successful startups such as Zeepay, Hubtel, mPharma, Farmerline and others which are facilitating access to services in the financial, healthcare, agriculture, education and digital commerce sectors.

The emergence of these startups, the report mentions, has proven to be a major contributor to financial inclusion efforts in Ghana, also facilitating the flow of international remittances into the country.

Other than this, the document mentions other initiatives such as the Ghana Digital Centers Limited which seek to create an enabling environment for the development of technology parks and digital innovation hubs, the e-Transform Project aimed at improving digital skills and creating a decent environment for startup efforts to thrive, as well as the Ghana Innovation Hub and the National Entrepreneurship and Innovation Plan which both offer support for tech startups.

While these DPI efforts are being made to strengthen the startup ecosystem, the report identifies some gaps that need to be filled. These include aspects related to more infrastructure development, improving regulatory and policy frameworks, improving digital literacy and skills, clearing financial and economic barriers, and ensuring sustainability and scale.

Ghana Veepee says DPI critical to digital economy growth

Meanwhile, during a recent campaign event, Ghana’s Vice President and candidate of the ruling New Patriotic Party (NPP) for the next presidential election, Mahamudu Bawumia, said DPI has been critical in the development of the country’s digital economy.

He said aspects such as digital ID and digital address systems have been indispensable in building the economies of advanced nations, and that’s the route he proposed for Ghana in a book he wrote in 2010 titled “Monetary Policy and Financial Sector Reforms in Africa,” according it’s a press release.

“There are things you have to do first if you want to enter the digital world. First, your citizens must be digitally identified. That’s why we said let us issue the Ghanacard and the Ghana Card has been issued,” Bawumia is quoted as saying in the release.

He noted that in line with those efforts, about 85 percent of all Ghanaian adults do have a digital ID, which represents about 18 million Ghana cards issued, with ID numbers also issued to children at birth.

As Veepee, Bawumia is known to have championed the cause for Ghana’s digital transformation drive, something he may continue to do should he be elected Ghana’s next president on December 7.

Article Topics

Africa | digital economy | digital ID | digital identity | digital public infrastructure | financial inclusion | Ghana | Ghana Card | startup