26 October 2018
Hosted by the SOAS Centre for Global Finance (CGF), H.E. Dr Mahamudu Bawumia, Vice-President of the Republic of Ghana delivered a distinguished guest lecture on “The Drive towards Building a Digital Economy in Ghana”, on 22 October 2018 at SOAS University of London. The event attracted more than 120 participants, including academics, practitioners and students.
Watch the lecture at: https://www.centreforglobalfinance.org/distinguished-guest-lecture/
Speaking on the topic “The Drive Towards Building a Digital Economy”, Vice President Bawumia explained the current macroeconomic achievements, for example, economic growth has risen from 3.7% to 8.5% and inflation has fallen from 15.4% to 9.8% in the last 21 months.
Dr Bawumia outlined the need for Ghana to rapidly formalise her economy, the Nana Akufo-Addo Government’s resolve to leverage technology to achieve the formalisation agenda, the successes chalked so far, and the way forward.
“Nearly 61 years ago we gained independence and inherited an economy that pointed us in one direction: extract your natural resources and export them to the rest of the world; import what you don’t have through trade and you may rely on external development assistance to fill your development gaps. (But) This paradigm has not served us well. Our economy remains colonial, highly informal, undiversified, weak, vulnerable, and lacks the internal capability to renew itself, create jobs and spur innovation. We needed to change course,” Dr Bawumia pointed out.
“We have learnt from our past and have taken lessons from other economies. Sustained and high growth economies have absorbed know-how, technology and knowledge from the rest of the world. We must maximize knowledge diffusion to accelerate our progress in development. Therefore, we have resorted to the use of technological innovations to address some of our structural and institutional weaknesses. That is the surest way to leapfrog change,” the Vice President indicated.
Speaking after the Vice President’s lecture, Professor Victor Murinde - the Director of the Centre for Global Finance and the AXA Chair in Global Finance at SOAS University of London, urged the Ghana government to stay on, and accelerate the pace of the digitisation agenda to help rapidly formalise the economy. Prof Murinde has described Ghana’s ongoing efforts to create a digital, formalised economy as a “timely step in the right direction.”
Prof Murinde said the decision by the Nana Akufo-Addo government to adopt technology in its bid to formalise the Ghanaian economy is very laudable and shows that “Ghana is on the right path.”
Ghana’s “trailblazing” role in the African digitisation agenda is also commendable, Prof Murinde indicated and urged other African countries to emulate Ghana’s example and move in the direction of digitisation in order to take their rightful place in the ever-evolving world economy.
Interview with H.E. Dr Mahamudu Bawumia by Dr Ayse Demir, Centre for Global Finance, SOAS University of London.
Ayse Demir: Do you think that Ghana’s transition to a digital economy will contribute to reducing gender inequalities?
H.E. Dr Mahamudu Bawumia: One of the goals of the digitalisation agenda is to close the gender gap. For example, through land digitisation we gave land titles to women. We targeted to close gender gap through providing equal opportunities in health care and education system. Through financial inclusion, we try to enable participation of women in the financial sector.
Ayse Demir: Have you implemented or do you plan to implement any policies to promote financial literacy that aims to increase public awareness of the digital economy?
H.E. Dr Mahamudu Bawumia: Yes, we conducted campaigns prior to the implementation of such digital transformations. For example, campaigns to explain why Ghanaian should have national ID or what are the benefits of having a national ID.
Ayse Demir: What are the further supervisory and regulatory transformations that you have planned to keep this development sustainable?
H.E. Dr Mahamudu Bawumia: Land digitization, mobile money payments and national IDs are sustainable. We established regulatory bodies such as National Identification Authority to regulate national id services, Central Bank regulations on the mobile money services and again regulatory frameworks to control land digitization to ensure that these policies are sustainable.
This event is also featured in the online portal of the biggest newspaper in Ghana (Graphic Online): https://www.graphic.com.gh/news/general-news/ghana-is-on-the-right-path-uk-s-soas-director.html