Ghana really wants Mukesh Ambani’s Jio model. The Huge Payout Explained

Ghana is betting big on a transformative 5G network, backed by one of the richest men in the world, Mukesh Ambani. As the West African country recovers from a crippling debt crisis, hopes are high that the technology will reduce data costs and boost economic growth.

According to a Bloomberg report, Ambani backed Next-Gen InfraCo. (NGIC) will roll out its first wave of 5G coverage. According to Minister of Communications and Digitalization Ursula Owusu-Ekuful, the goal is nationwide access by 2026.

She emphasized that the initiative is more than just a technological upgrade. “We hope this would also democratize access to high-speed connections across the country,” she said.

NGIC aims to replicate the seismic shift that Ambani’s Reliance Jio brought to India in 2016. By introducing affordable data and free voice services, Jio changed the Indian telecom landscape, amassing 470 million users and setting the benchmark for mobile data affordability.

In Ghana, a similar revolution is expected to increase access and economic opportunities.

Although the Ghanaian economy is showing signs of recovery, it still has a long way to go. Growth was 6.9% in the second quarter of this year, a jump from 4.7% in the first quarter, mainly driven by mining.

Still, the country needs more balanced and sustainable economic gains to return to pre-pandemic levels of 6% annual growth or higher. The government is working on several fronts, including an $8.2 billion cedis initiative to offer low-cost loans to small and medium enterprises, a sector that represents 70% of Ghana’s GDP.

NGIC’s exclusive 10-year 5G license, purchased for $125 million, could be a gamechanger. With major telecom players such as MTN Ghana and Telecel Ghana depending on NGIC’s network, consumers can expect lower data costs. Radisys Corp., a part of Ambani’s Reliance Industries Ltd., will provide critical infrastructure, while Nokia, Tech Mahindra and Microsoft are also on board as partners.

Ghana’s internet penetration is roughly 70%, a figure the government plans to target for near-universal coverage over the next six years.