News

10 October 2024

FIBRE CABLE PROJECT IN GHANA CREATES DEVELOPMENT

Denmark has contributed to the establishment of a large fibre cable project that has led to significant economic benefits in Ghana. This is the conclusion of a new evaluation report from the Danish consulting firm COWI.

Danida Sustainable Infrastructure Finance (DSIF) has co-financed the establishment of a 1,000 km fibre cable in Ghana, stretching from the border with Burkina Faso to the capital of Accra, and which is further connected to a West African submarine cable outside Accra.

The agreement between Denmark and Ghana was concluded back in 2011, and the purpose of the project was to establish digital infrastructure that could contribute to the country’s development and make public administration more efficient. The project was finalized in 2018, when the connection was completed and ready for use.

However, it turned out that the National Information and Technology Agency of Ghana (NITA) had difficulties connecting public institutions to the cable and to operate and maintain the cable and related infrastructure. Therefore, in 2021 it was decided to transfer operational and development responsibility for the connection to the Ghanaian company Smart Infraco.

Smart Infraco made further investments in the cable connection, including capacity upgrades, new energy and cooling systems, batteries and repairing cable connections.

A new report from COWI, which has conducted a so-called 5-year performance study, shows that the fibre cable solution now works satisfactorily and has led to significant economic benefits for Ghana.

At the beginning of 2024, almost 175 ministries, departments and public agencies were connected to the cable. In addition, several district councils use the infrastructure to manage websites. The connection is also central to Ghana’s efforts to realize the country’s so-called E-transform project, which is being implemented in cooperation with the World Bank. The digital strategy aims to increase security and contribute to the deployment of digital solutions such as ID, driver’s license, as well as better health and education systems with higher quality and wider reach. As a result, the cable connection has been upgraded to 100 Gb/s.

Professional operations and clear roles

The experience with the project is that NITA did not have the necessary competencies to operate and maintain the cable connection as originally planned. But after a clear division of roles, where NITA is the national regulator and the private company Smart Infraco is responsible for the operation of the fibre cable, a professional and sustainable solution has been found, where the fibre cable project creates value for both customers and the Ghanaian state.

The division of responsibility also includes a financial agreement where NITA and Smart Infraco share the revenue from the cable connection. According to COWI’s report, this is a positive strategy as it creates incentive for Smart Infraco to ensure solid operations and positive earnings, which is in everyone’s interest.

DKK 135 million in Danish aid

The total cost of the fibre cable project is DKK 310 million, financed through a subsidised government-guaranteed loan taken out by Ghana with Danske Bank. The Danish government has contributed a total of DKK 135 million in financial support.