Ghana's Hidden Digital Tax: Why Internet is Slow & Expensive - Fix It Now! (2025)

Ghana’s digital future is being held hostage by a hidden tax—a silent thief that slows our internet, inflates our data costs, and stifles our progress. Imagine sending a package from Accra to Kumasi, only for it to take a detour through London before reaching its destination. Absurd, right? Yet, this is exactly what happens to a staggering amount of Ghana’s internet traffic every single day. An email sent from one Accra office to another often travels thousands of kilometers to Europe and back before it arrives. This digital detour, known as 'tromboning,' isn't just an inconvenience—it's a costly inefficiency that every Ghanaian internet user pays for, whether they realize it or not.

But here's where it gets controversial: this problem isn't unsolvable, and the tools to fix it are already within our reach. Ghana has built world-class Internet Exchange Points (IXPs) like AccraIX, capable of handling massive amounts of traffic locally. Yet, these digital superhighways remain eerily empty, with utilization rates below 0.01%. Why? The answer lies in market dynamics, from dominant players' restrictive peering policies to foundational infrastructure challenges like an unreliable power grid. This isn't just a technical issue—it's a systemic failure that demands bold action.

And this is the part most people miss: Ghana’s peers, like Kenya and Nigeria, have already cracked the code. By fostering open peering policies, incentivizing local hosting, and treating reliable power as critical digital infrastructure, they’ve localized over 70% of their internet traffic. The results? Faster speeds, cheaper data, and billions saved annually. Ghana has the blueprint—but do we have the will to follow it?

The economic stakes are staggering. Localizing internet traffic could save Ghana tens of millions of dollars annually, making data more affordable and fueling digital innovation. For instance, Kenya saved $6 million yearly by 2020, while Nigeria’s savings topped $40 million. Meanwhile, Ghana’s average cost of 1GB of mobile data rivals the daily minimum wage, putting consistent internet access out of reach for many. This isn’t just about numbers—it’s about equity, opportunity, and sovereignty in the digital age.

The paradox is glaring. Ghana has built the infrastructure, yet we’re not using it. AccraIX, with its 515 Gbps capacity, sits largely idle while our traffic takes expensive international detours. This isn’t a technical failure—it’s a market failure, exacerbated by dominant players like Scancom (MTN) that maintain selective peering policies, effectively monetizing their market power at the expense of competition and consumers.

But here’s the real question: Is this the digital future we want? One where our economy hemorrhages money, our startups are forced to host abroad, and our citizens pay a premium for slow, unreliable internet? Or will we reclaim our digital destiny by addressing the root causes—from updating our regulatory framework to stabilizing our power grid?

The path forward is clear. Ghana’s National Communications Authority (NCA) can lead the charge by modernizing the Electronic Communications Bill, 2025, to mandate open peering, incentivize local hosting, and prioritize cross-sectoral collaboration on power reliability. By adopting a community-led, multi-stakeholder approach, we can replicate the success of Kenya and Nigeria, creating a faster, cheaper, and more sovereign digital future.

What do you think? Is selective peering a necessary evil, or a barrier to progress? Should reliable power be treated as critical digital infrastructure? Share your thoughts in the comments—let’s spark a conversation that drives change. Ghana’s digital future is too important to leave to chance. It’s time to remove the hidden tax and build a direct path to progress.

Ghana's Hidden Digital Tax: Why Internet is Slow & Expensive - Fix It Now! (2025)
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