Communications Minister defends sole sourcing of 5G rollout contract to week-old company

Ghana’s recent move to award a 5G network rollout contract to NextGen InfraCo, a company established just a week before securing the deal, has ignited significant debate over procurement transparency.

Communications and Digitalisation Minister Ursula Owusu-Ekuful confirmed the timeline and rationale behind this decision, explaining that the nascent firm was specifically created to address the lack of an existing neutral infrastructure capable of executing the 5G deployment.

At a press briefing on Thursday, Mrs Owusu-Ekuful detailed the government’s rationale for bypassing the auction process, citing previous setbacks encountered during the country’s 4G rollout.

Since its 2015 introduction, 4G has only achieved a 15% penetration nationwide, a shortfall attributed to the challenges of auction-based deployment and the lack of coordinated infrastructure development.

To circumvent these obstacles, the government opted for a direct award to a specially formed entity, aiming to streamline the implementation of the new technology.

“The formation of a dedicated infrastructure company was imperative,” Owusu-Ekuful stated. “This strategic decision is rooted in our past experiences and the necessity to avoid similar pitfalls encountered during the 4G deployment.”

However, the decision has not been without some concerns being raised. Investigative journalist Manasseh Azure Awuni has raised concerns about the lack of competitive bidding in the procurement process.

In a Facebook post, Mr Awuni highlighted that the contract, estimated to be worth hundreds of millions of dollars, was awarded through sole sourcing, thereby eliminating opportunities for other firms to participate. This approach, he argued, raises questions about the transparency and fairness of the process.

Adding a layer of complexity to the situation is the government’s partnership with seven industry leaders to develop a new shared infrastructure. These partners, including Ascend Digital, K-NET, Radisys, Nokia, Tech Mahindra, AT Ghana, and Telecel Ghana, have collectively formed the Next-Gen Infrastructure Company (NGIC), which has been granted the 5G license.

The consortium is tasked with launching 5G services across Ghana within six months, with plans for further expansion across Africa.

This initiative aims to enhance digital services in sectors such as education, healthcare, and digital payments, and is expected to reduce the digital divide while promoting financial inclusion.

NGIC plans to introduce affordable 4G/5G-enabled fixed wireless access customer premises equipment and smartphones in Ghana this year, drawing on successful models from India to replicate high-speed mobile data deployment across the continent.

Despite these ambitions, the lack of competitive procurement remains a contentious issue. Critics argue that sole sourcing contracts of this magnitude necessitate rigorous scrutiny to ensure integrity and public trust. As Ghana positions itself for a 5G-enabled future, balancing expeditious rollout with robust procurement practices will be critical in shaping both technological and economic outcomes.

Source: Norvanreports