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The nation’s Gross Domestic Product (GDP) is expected to rise to US$71.74billion from GH$68billion if it effectively implements the African Continental Free Trade Area (AfCFTA) Protocol on Digital Trade according to an ODI report.
The AfCFTA Protocol on Digital Trade aims to strengthen Africa’s digital economy while promoting intra-African trade and investment.
If implemented it is expected to boost the country’s digital economy and fintech industry which currently contributes four per cent to the nation’s GDP valued at US$2.5 billion.
This new revelation which was sighted by the Graphic Business via the Overseas Development Institute (ODI)’s report on advancing AfCFTA digital trade implementation in Ghana also disclosed that the digital platform could increase exports from US$22 billion to US$25.83billion.
“This underscores the economic potential of leveraging the country’s digital economy under the protocol,” the report stated.
The report highlighted the government’s policies such as the Ghana Digital Agenda 2018 and the Ghana Beyond Aid Charter and Strategy 2019 as the foundation that is spurring the growth of the digital ecosystem.
“These policies are complemented by the legal frameworks such as the Cyber Security Act 2020 and Data Protection Act 2012, which aim to create a secure and efficient digital ecosystem,” the report noted.
The report advised the government to study and align with international standards of digital trade to learn how digital platforms work including how data is protected.
“Ghana must focus on aligning its digital trade regulations with international standards to build trust in digital platforms and foster trade; strengthening data protection laws and increasing investment in infrastructure are viewed as critical steps toward addressing these challenges,” the report stated.
The report observed that significant challenges still persist in this stead, including weak enforcement of digital trade regulations, inadequate harmonisation with international data protection standards and limited awareness of the protocol among private sector players which hinder the progress of the digital trade.
It also called for an investment in the sector to shore up access to the Internet, data and broadband.
“The digital divide remains a concern, with broadband access below 50 per cent in northern Ghana compared to 50-90 per cent in coastal regions; additionally, insufficient investment in digital infrastructure such as data centres and cloud system constrains the sector’s potential,” it stated.
It called on the government to close the gap in the digital divide especially among SMEs, women and the youth, “Bridging the digital divide and supporting micro, small and medium enterprises, especially those led by women and the youth which is essential for creating a more robust digital economy,” it noted.
The report called on the government to develop a Ghana Digital Trade Strategy and Action Plan to unlock the full benefits of the digital trade protocol.
“This road map would guide efforts to enhance the digital ecosystem, improve stakeholder capacity and foster public-private partnerships for infrastructure development,” it further noted.
