A proposed 5G wireless services deal involving Mukesh Ambani, Asia’s second-richest man, is facing strong opposition from Ghana’s parliamentary minority. Critics have accused the government of rushing into a “sweetheart deal” that may not be in the country’s best interest.
The National Democratic Congress (NDC) has voiced concerns over the government’s plan to partner with Ambani’s company to launch a 5G network, arguing that the deal is disadvantageous for Ghana, a country already burdened with debt and in need of funds for essential development projects.
The NDC claims that the government bypassed a more lucrative formal bidding process, which could have generated between $400 million and $500 million upfront. Instead, the contract was awarded to Next Gen Infraco for $125 million, payable in annual installments over 10 years.
“The NDC caucus in Parliament holds the view that at a time when the country is in dire need of foreign exchange and non-tax revenue, it is unconscionable that the government will hand over the precious and highly sought-after 5G spectrum of the country to a shell company for a pittance,” the caucus stated.
Under the terms of the deal, Radisys Corp., a unit of Ambani-controlled Reliance Industries Ltd., will provide network infrastructure, applications, and smartphones for Ghana-based NGIC. This arrangement grants NGIC and its strategic partners exclusive control over Ghana’s only 5G license for a decade.
The partners in NGIC include Nokia Oyj, Indian outsourcer Tech Mahindra Ltd., and Microsoft Corp. Additionally, two lesser-known African telecom firms, Ascend Digital Solutions Ltd. and K-NET, hold a combined 55% stake in the new company, while the Ghanaian government owns roughly 10%.
Ghana’s government has set an ambitious target to digitally connect the entire country over the next six years. With a population of just over 33 million, the nation’s primary telecom operators include MTN Ghana, Telecel Ghana, and AT (formerly AirtelTigo).
As the debate continues, the opposition’s resistance highlights the complexities and high stakes involved in the rollout of 5G technology in Ghana, raising critical questions about transparency and the long-term benefits for the nation’s digital infrastructure.
