Mukesh Ambani Faces Opposition in Ghana Over Exclusive 5G Deal

A deal involving Mukesh Ambani, Asia’s second-richest individual, to capitalize on Ghana’s demand for 5G wireless services is encountering opposition from the country’s parliamentary minority.

The opposition has accused the government of hastily entering into what they term as a “sweetheart deal.”

In a statement released on Monday, June 3 2024, the National Democratic Congress (NDC) expressed concerns about the Ghanaian government’s plan to introduce a 5G network through a partnership with a company associated with Mukesh Ambani.

The opposition believes that the deal is unfavorable for the debt-laden nation, which requires funds for crucial development projects.

According to the minority caucus, Ghana could have garnered between $400 million and $500 million upfront through a formal bidding process.

However, they allege that the government opted for a contract with the company Next Gen Infraco, valued at $125 million, to be paid in annual installments over a decade.

“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.

The deal grants NGIC and its strategic partners exclusive control over Ghana’s sole 5G license for ten years. NGIC’s partners include Nokia Oyj, Tech Mahindra Ltd., Microsoft Corp., Ascend Digital Solutions Ltd., and K-NET, among others. The Ghanaian government holds a minority stake of approximately 10% in the venture.

The partnership aims to replicate the success of Ambani’s Jio Infocomm Ltd. in India, which revolutionized the telecom industry by offering low-cost data and free voice calling, leading to widespread adoption and making mobile data affordable to millions of Indians.

Ghana’s government has set an ambitious goal of digitally connecting the entire country within the next six years. With a population of over 33 million, Ghana currently has three main operators: MTN Ghana, Telecel Ghana, and AT, formerly known as AirtelTigo.