Omanghana
Ghana’s Minister for Communications, Digital Technology and Innovation, Samuel Nartey George, has called for a major transformation in the country’s financing system to support the growth of its information and communications technology sector.
Speaking at a technology and finance summit in Accra, the minister said conventional banking and debt-financing arrangements were not adequately designed for the high-risk and asset-light nature of technology businesses.
He explained that many commercial banks continue to demand land titles, buildings and other physical assets as collateral before granting loans. This requirement places software developers, digital platforms and technology startups at a disadvantage because their most valuable assets are often intellectual property, data and computer code.
According to Sam George, Ghana will struggle to unlock the full potential of its digital economy unless financial institutions develop investment products that reflect the characteristics and needs of technology ventures.
He called on banks, venture capital companies and private equity firms to establish specialized funds for digital innovation. Such funds, he said, should provide patient capital, equity investment and flexible financing to both early-stage startups and expanding technology companies.
The minister also advocated for the wider use of mezzanine financing, which combines features of debt and equity. He said this could provide growing technology businesses with capital without subjecting them to the rigid repayment conditions associated with conventional bank loans.
Sam George further encouraged the adoption of blended financing arrangements for major digital infrastructure projects. Under such structures, government guarantees and development-partner funding could be combined with private-sector investment to distribute risk and reduce borrowing costs.
He said public-private partnerships could support the expansion of broadband networks, data centers, cloud services and other infrastructure required to accelerate Ghana’s digital transformation.
The minister also proposed that Ghana’s pension funds should be permitted to invest a carefully controlled portion of their assets in domestic technology funds and digital infrastructure projects.
He urged regulatory institutions, including the National Pensions Regulatory Authority, to review existing investment frameworks and create secure channels through which pension assets could support the local technology sector.
Such investments, he noted, would have to be governed by strong safeguards to protect contributors’ retirement funds while creating long-term financing opportunities for viable digital businesses.
Sam George reaffirmed the government’s commitment to establishing a supportive policy environment for technology investors and entrepreneurs. He identified fintech development, secure digital payment systems and stronger intellectual property protection as important areas of focus.
He said effective intellectual property protections would give innovators greater confidence that their ideas and products could be commercialized without being unfairly copied or exploited.
The minister also stressed the importance of policies that attract both domestic and international investment while allowing Ghanaian technology companies to expand and compete beyond the local market.
Ghana is seeking to strengthen its position as a leading digital and financial technology Centre in West Africa. Achieving that ambition will require investment in broadband infrastructure, cloud computing, digital skills and support systems for startups.
Sam George maintained that financing reform would be central to that effort, arguing that innovative businesses cannot rely solely on traditional loan structures developed for companies with substantial physical assets.
He called for closer collaboration among the government, financial institutions, pension fund managers, development partners and private investors to build a financing ecosystem capable of supporting Ghana’s digital ambitions.
Source: Omanghana
