Dr Mahamudu Bawumia has continued his constituency-focused nationwide campaign with intensive engagements in the Daboya-Mankarigu, Bole-Bamboi and Sawla-Tuna-Kalba constituencies in the Savannah Region.
According to him, his campaign continues to be issues-based, focusing on his vision of building a modern Ghana anchored on a solid foundation of education, technology, and skills acquisition in order to fully take advantage of the possibilities inherent in the fourth Industrial Revolution.
On one of the campaign grounds, Dr Bawumia made this campaign promise:
“We will make mobile phones accessible; my government will partner with phone manufacturers so that Ghanaians can afford them on credit and pay 1 or 2 cedis every month,”
Dr. Bawumia emphasized the potential benefits of his proposal, stating, “Access to smartphones is no longer a luxury but a necessity. It opens up opportunities for education, business, and staying connected with loved ones. By making smartphones affordable, we are enhancing connectivity and fostering an environment where every Ghanaian can thrive in the digital age.” This vision of a digitally inclusive Ghana is indeed promising.
I closely examine Dr Bawumia’s campaign promise to make mobile phones accessible through a credit system, with a monthly payment of 1 or 2 cedis. While this initiative is a step towards bridging the digital divide in Ghana, I question whether it is a genuine attempt to address the issue or simply a political gesture. A closer look at the proposal indicates a need for more clarity on the underlying economic assumptions and the Vice President’s vision for economic transformation.
On the surface, Dr. Bawumia’s promise appears to align with the principles of digital inclusion which focuses on the importance of smartphones in modern life. However, the devil lies in the details. By proposing a credit system with a monthly payment of 1 or 2 cedis, Dr. Bawumia implies that his government will not necessarily consider economic transformation, a process of fundamental change in the structure of an economy, to increase citizens’ purchasing power. Instead, the focus seems to be on making smartphones accessible through debt financing.
If Dr. Bawumia’s administration intends to transform the economy, why is he not promising to create an economic environment where citizens can afford smartphones without relying on credit. An economy characterized by success would typically lead to increased purchasing power, making smartphones more affordable for Ghanaians. This potential for economic growth should be a source of optimism for Ghanaians.
Obviously, the financing model proposed by Dr. Bawumia seems unrealistic, if not impractical. Mobile phone dealers operate on profit margins, and it is unlikely that they would be willing to sell their products on credit with monthly payments as low as 1 or 2 cedis. This amount is lower than the actual cost of the device, and it is unclear how the dealers would recoup their investment. This could potentially lead to a situation where dealers either refuse to participate in the scheme or increase the prices of their products to cover the risk, ultimately making smartphones less affordable for Ghanaians.
Dr. Bawumia’s promise assumes that, when he becomes Ghana’s president, the economy will remain stagnant, and people will not have the disposable income to purchase mobile phones outright. This is a pessimistic outlook. It is reasonable to expect that people’s purchasing power will increase, making it easier for them to afford mobile phones without relying on credit financing. This potential for increased purchasing power should be a source of optimism for Ghanaians.
However, it is also possible that Dr Bawumia’s statement was made to illustrate a point rather than be a concrete policy proposal. He may have been speaking in a manner akin to a “class one teacher” to simplify the concept so that his audience could grasp his message correctly.
