Policy think tank, the YAFO Institute, has mounted a strong opposition to Ghana’s proposed National Information Technology Agency (NITA) Bill, 2025, warning that the legislation could undermine innovation, discourage investment, and criminalise ordinary digital entrepreneurship if passed in its current form.
In a detailed press release on Tuesday, May 26, the Institute described the Bill as “one of the most dangerous expansions of state authority over Ghana’s digital economy in recent memory.”
YAFO Institute argued that several of its provisions threaten years of private-sector driven technological growth.
At the centre of the Institute’s concerns are proposals within the Bill that would introduce mandatory licensing for ICT businesses, compulsory certification of ICT professionals, criminal sanctions for unlicensed operations, a 1% levy on the gross revenue of ICT firms, and broader enforcement powers for regulators.
According to the YAFO Institute, the proposed framework risks transforming Ghana’s digital economy into what it called a “permission-based sector” governed by administrative discretion rather than open innovation.
The group warned that provisions requiring licensing for ICT-related activities could expose software developers, digital freelancers, app creators and small technology startups to criminal liability for operating without state approval.
“The implications are profound,” the statement noted, arguing that even self-taught programmers, university students building applications, or small startups experimenting with digital products could fall within the scope of the law.
The Institute also raised concerns over plans to introduce certification standards for ICT professionals, questioning whether the proposal conflicts with existing provisions under Ghana’s Electronic Transactions Act, 2008 (Act 772), which bars the issuance of licences to individuals.
It further argued that the proposal appears inconsistent with government-led digital empowerment initiatives such as the One Million Coders Programme.
“Ghana cannot promote coding, digital freelancing and technology entrepreneurship while simultaneously imposing licensing and certification requirements for participation in the sector,” the Institute stated.
Another major concern highlighted by the policy group is the proposed 1% levy on the gross revenue of ICT companies. It argued that taxing gross revenue rather than profit could severely affect startups and firms operating on thin margins, particularly given rising costs associated with electricity, internet infrastructure, salaries and cloud services.
The Institute warned that the measure could discourage startup formation, experimentation and venture capital investment at a time when Ghana is positioning itself as a regional technology hub.
Beyond the financial implications, the YAFO Institute cautioned that the Bill could create overlapping regulatory authority among institutions including the National Information Technology Agency, the Cyber Security Authority, the National Communications Authority and the Data Protection Commission.
It said such fragmentation could increase compliance costs, create regulatory uncertainty and weaken Ghana’s attractiveness to foreign investors.
The Institute also criticised provisions granting the sector minister broad powers to expand regulated ICT activities through Legislative Instruments, arguing that such discretion could create instability for businesses and investors seeking long-term certainty.
Drawing comparisons with countries such as Kenya and South Africa, the Institute said many leading innovation economies avoid mandatory licensing regimes for software developers and instead rely on market-driven competence systems and voluntary professional standards.
It further raised constitutional concerns, alleging that aspects of the proposed regulatory framework may already have been operationalised administratively before parliamentary approval.
The YAFO Institute has consequently called on government to withdraw and redraft the Bill, conduct a comprehensive regulatory impact assessment, remove criminal penalties for ordinary ICT activities, scrap the proposed revenue levy, and undertake wider stakeholder consultations with industry players, startups, investors and academia.
“The future of Ghana’s digital ecosystem depends on openness, innovation, investment and constitutional restraint — not excessive licensing and regulatory gatekeeping,” the statement concluded.
