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A deal for Mukesh Ambani, Asia’s second-richest man to capitalise on the demand for 5G wireless services in Ghana is facing opposition from the country’s parliamentary minority, who have criticized the administration for rushing into a “sweetheart deal.”
NDC stated that the Ghanaian government’s plan to launch a 5G network in partnership with Mukesh Ambani’s company is disadvantageous for the debt-ridden country.
Ghana’s government has set an ambitious target to digitally connect the entire country over the next six years.
The National Democratic Congress (NDC) stated that the Ghanaian government’s plan to launch a 5G network in partnership with Mukesh Ambani’s company is disadvantageous for the debt-ridden country, which requires funds for essential development projects.
The minority caucus stated that the West African nation could have generated between US$400 million and US$500 million upfront if the government had opted for a formal bidding process, Bloomberg reported. Instead, they claim, the administration awarded a contract to the company Next Gen Infraco for US$125 million, paid in annual instalments over 10 years.
“The NDC caucus in Parliament holds the view that at a time that the country is in dire need of foreign exchange and non-tax revenue, it is unconscionable that the government will hand over the precious and highly sought-after 5G spectrum of the country to a shell company for a pittance,” the caucus said. Under the terms of the deal, Radisys Corp., a unit of Ambani-controlled Reliance Industries Ltd., will provide network infrastructure, applications and smartphones for Ghana-based NGIC. The deal gives NGIC and its strategic partners exclusive control over Ghana’s only 5G license for a decade. —Business Insider Africa
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