OWNERSHIP BATTLE: “You Could Have Invested In It” — Prof. Quaynor Challenges Ghana’s Approach To Telecom Infrastructure

Internet pioneer Prof. Nii Narku Quaynor has questioned Ghana’s approach to foreign investment in the telecommunications sector, arguing that retaining ownership of strategic infrastructure is important for national development.

In an interview with Kafui Dey, Prof. Quaynor discussed the ownership of telecommunications assets previously associated with Ghana Telecom and said the country could have chosen to retain and invest in some of its infrastructure rather than sell it.

“Somebody took a decision to sell it. You could have taken a decision to invest in it,” he said.

Ghana Telecom was established in 1996 after the restructuring of the telecommunications sector and the separation of telecommunications operations from the former Posts and Telecommunications Corporation. The company became the state’s principal fixed-line telecommunications operator.

As part of reforms supported by international financial institutions, Ghana sought private investment to expand and modernize the sector. In 2000, the government sold a 30% stake in Ghana Telecom to Telekom Malaysia Berhad for about US$30 million. The transaction gave the Malaysian company management control, while the Ghanaian government retained the majority share.

The arrangement did not produce the transformation the government had expected. Ghana Telecom faced financial and operational difficulties, and the partnership was later terminated. The government subsequently resumed control of the company.

In 2006, Ghana Telecom was restructured and prepared for another strategic sale. In 2008, the government agreed to sell a 70% stake in the company to Vodafone Group for US$900 million. The transaction was completed after parliamentary approval, with the Ghanaian state retaining a 30% minority interest.

Vodafone Ghana later became one of the country’s major telecommunications operators. In 2023, Vodafone Group announced the sale of its Ghana business to Telecel Group, subject to regulatory approval. The transaction transferred Vodafone Ghana’s operations to a new owner, although it was separate from the original 2008 sale of Ghana Telecom’s controlling stake.

For Prof. Quaynor, that trade-off is at the heart of the debate.

Ghana had the option of treating Ghana Telecom as a strategic national asset and investing in its expansion. Instead, the country chose to rely on foreign capital and private-sector management.

He challenged the view that attracting foreign capital should automatically be regarded as a measure of development.

“Your sense of development is how much money comes from outside. That’s not my sense of development,” he said.

Prof. Quaynor argued that local ownership gives countries greater control over how infrastructure is managed and used to support national priorities.

“Ownership should be there. It’s important because then you can guide the ownership to do certain things for national development,” he added.