The YAFO Institute has raised strong objections to the proposed National Information Technology Agency Bill, 2025, describing it as a dangerous expansion of state authority that could undermine Ghana’s growing digital economy, stifle innovation, and discourage investment.
In a strongly worded statement, the policy think tank warned that the proposed legislation contains broad regulatory powers, criminal sanctions, mandatory licensing and certification requirements, and what it described as “anti-market elements” that could reverse years of progress made by Ghana’s private technology sector.
“The Bill, in its current form, poses serious constitutional, economic, investment, and innovation-policy risks to Ghana’s digital future,” the Institute stated.
According to the group, the proposed law introduces sweeping controls over Ghana’s ICT ecosystem, including mandatory licensing for ICT businesses, compulsory certification for ICT professionals, criminal penalties for operating without licenses, a proposed 1 percent levy on gross revenue of ICT entities, expanded inspection and enforcement powers, and broad ministerial authority to widen the scope of regulated activities.
While acknowledging the need for proper digital governance frameworks, the Institute argued that the Bill goes far beyond acceptable regulation and risks transforming Ghana’s technology industry into a heavily controlled, permission-based sector.
The YAFO Institute expressed particular concern over provisions that could criminalize ordinary digital entrepreneurship. It pointed to Section 35 of the Bill, which mandates licensing requirements for ICT companies and related activities while imposing criminal penalties for operating without authorization.
The organization warned that the provision could affect software developers, freelance programmers, digital agencies, and young technology entrepreneurs who often operate informally during the early stages of innovation.
“A university student producing software from a hostel room, a self-taught programmer developing websites for clients abroad, or a small business experimenting with digital products could all come under an expansive licensing system whose boundaries are undefined and unclear,” the statement noted.
The Institute added that globally successful technology ecosystems were not built through excessive entry restrictions and the criminalization of innovation.
“Criminalizing entry-level innovation did not create a leading global technology ecosystem,” it stressed.
The think tank also questioned provisions relating to mandatory certification of ICT professionals under Section 46 of the Bill. It argued that the proposed framework appears to conflict with Section 38(1) of the Electronic Transactions Act, 2008 (Act 772), which states that licenses shall not be issued to individuals.
The organization called on the Ministry of Communication, Digital Technology and Innovations to clarify whether the Bill seeks to expand state authority beyond existing statutory limits and whether current certification processes are legally consistent with Ghana’s laws.
Another major concern raised by the YAFO Institute is the proposed 1 percent levy on the gross revenue of ICT companies. The Institute described the levy as economically harmful, arguing that it ignores operational realities within the technology sector.
It warned that startups operating on thin margins could lose substantial portions of their earnings before becoming profitable, potentially discouraging investment and entrepreneurship within the sector.
“This proposed bill may discourage startup formation, venture investment, experimentation, and digital entrepreneurship at precisely the moment Ghana claims to be pursuing digital transformation,” the statement added.
The Institute further cautioned that the Bill could create overlapping regulatory responsibilities among key institutions including the National Information Technology Agency, Cyber Security Authority, National Communications Authority, and the Data Protection Commission.
Drawing comparisons with other countries, the YAFO Institute noted that nations such as Kenya, South Africa, the United States, India, Estonia, and several European countries generally rely on market-driven systems rather than mandatory licensing and criminal penalties for software developers and ICT professionals.
“Technology ecosystems thrive where barriers to entry are low, experimentation is encouraged, innovation is decentralized, and competence is judged by market performance rather than bureaucratic approval,” the statement added.
The Institute also raised constitutional concerns, alleging that portions of the envisioned licensing and compliance framework may already have been operationalized administratively before parliamentary approval.
It argued that under Ghana’s constitutional framework, public agencies can only exercise powers explicitly granted by law and warned that any attempt to implement future powers before legislation is passed could face constitutional challenges under Articles 23 and 296 of the 1992 Constitution.
The YAFO Institute is therefore calling for the immediate withdrawal and redrafting of the Bill. It also recommended a comprehensive regulatory impact assessment, removal of criminal penalties for ICT entrepreneurship, elimination of mandatory qualification requirements for ICT professionals, removal of the proposed 1 percent levy, harmonization among digital regulators, and nationwide stakeholder consultations involving entrepreneurs, developers, investors, innovation hubs, academia, and civil society organizations.
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