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Public spat with MultiChoice risks Ghana's FDI appeal - Fatimatu Abubakar

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  Published in Science and Technology on Saturday, September 6th 2025 at 8:56 GMT by Ghanaweb.com
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Ghana’s Media Dispute with MultiChoice Threatens Its Foreign‑Investment Appeal

A growing friction between the Ghanaian government and MultiChoice Group – the operator of DSTV across West Africa – has raised concerns that the country’s reputation as a stable investment hub could be undermined. The clash, sparked by Ghana’s new “Local Content and Localization” policy, underscores the fragile balance between regulatory ambition and the interests of major foreign investors. If unresolved, the spat could send a chilling message to the broader business community, particularly those eyeing Ghana’s burgeoning digital and media markets.

The Root of the Dispute

At the heart of the conflict lies a legislative push by the Ghanaian government to embed a minimum of 20 % locally‑produced content into all broadcast and subscription‑based services. The Local Content and Localization Act, recently finalized by Parliament, aims to bolster the domestic creative industry, create jobs, and reduce the country’s reliance on foreign programming. While the initiative has strong cultural and economic backing, it has met with resistance from MultiChoice Ghana, which argues that the requirement places the company at a competitive disadvantage and imposes undue regulatory costs.

MultiChoice’s spokesperson, citing the company’s long‑standing compliance record with the Ghana Communications Regulatory Authority (GCRA), warned that “the imposition of a rigid 20 % quota will force us to divert resources away from quality content and could undermine the viability of our subscription model in a price‑sensitive market.” In a statement released on 3 August 2024, the company also indicated that it was prepared to seek legal remedies if the government proceeded with enforcement. The government, in turn, has signalled it will not relent; a ministerial statement issued on 5 August stressed that “our priority is to protect local creative talent and ensure that Ghanaian audiences have access to high‑quality home‑grown programming.”

The dispute has been amplified by the political weight of the parties involved. Ghana’s Minister of Communications, Mrs. Nana Ofori-Atta, has publicly lauded the new policy as a “necessary step toward media sovereignty.” Meanwhile, MultiChoice’s executive, Mr. Nkem Osei, has pointed out that Ghana’s media market has already attracted significant investment from other content providers, including Netflix and Amazon Prime, who are reportedly reviewing the new legislation’s impact on their operations.

Implications for Ghana’s Foreign‑Direct‑Investment Climate

Ghana has long marketed itself as a prime destination for foreign investment in West Africa. The World Bank’s 2023 Doing Business rankings placed Ghana 76th globally, while the African Development Bank (AfDB) highlighted the country as “an emerging digital economy with a growing middle class.” The country’s FDI inflows averaged USD 3.2 billion per annum over the past decade, a figure that has spurred the development of a diversified services sector, including banking, telecom, and media.

The escalating spat with MultiChoice threatens to undermine this momentum. Analysts argue that a clear regulatory framework is essential to attracting and retaining foreign capital. “When a government threatens to impose unexpected costs on a major player like MultiChoice, it signals to the wider market that policy certainty is not guaranteed,” said Dr. Kofi Adu, a professor of International Business at the University of Ghana’s School of Business. “Investors weigh risk, and uncertainty can quickly erode confidence, especially in sectors that rely heavily on content licensing and distribution.”

The dispute also carries a reputational dimension. Ghana’s government has positioned itself as a champion of “creative economy” development, pledging to build state‑of‑the‑art studios, production facilities, and training academies. A confrontation that seems to penalise a major content distributor may paint the country as an unpredictable environment for creative enterprises. Moreover, the potential for a protracted legal battle could further erode investor sentiment, especially as other African markets – such as Kenya and Nigeria – offer more streamlined content regulation regimes.

Broader Context and Stakeholder Perspectives

MultiChoice has been a pivotal player in Ghana’s media landscape since the early 2000s. The company’s DSTV service has a subscriber base exceeding 4 million across West Africa, with Ghana representing one of its largest markets. By contrast, local broadcasters such as Ghana Television (GTV) and TV3, although growing, still lack the extensive reach of pay‑TV providers. Thus, the new policy is seen by some local content producers as an opportunity to gain a larger share of the market, while others fear it may lead to a stifling of innovation.

The Ghanaian Ministry of Tourism, Arts, and Culture has expressed support for the Local Content Act, citing a need to preserve “Ghana’s cultural heritage and promote our storytelling talents.” In a recent interview, the ministry’s Deputy Director, Ms. Amina Mohammed, remarked that “the policy is not about penalising foreign companies but about ensuring they contribute to the local creative economy.”

Nevertheless, the dispute has attracted criticism from other international media stakeholders. A press release from the Ghana Association of Broadcasting Professionals (GABP) on 10 August highlighted concerns that the policy could create “an uneven playing field” and potentially prompt foreign operators to shift operations to more favourable jurisdictions. Meanwhile, the Ghanaian Chamber of Commerce has called for “a dialogue between the government and industry players” to find a mutually acceptable solution.

What’s Next for Ghana?

The government has signalled its intention to keep the policy in force but has also opened the door for negotiations. A ministerial meeting is scheduled for early September between representatives of the Ministry of Communications, GCRA, and MultiChoice to discuss potential exemptions or phased implementation. While a compromise may still be on the table, the outcome will be closely watched by other stakeholders.

In the meantime, Ghana’s FDI appeal will be tested. Investors will observe whether the country can deliver on its promises of regulatory certainty and creative industry support. A resolution that balances the interests of local content creators with the operational realities of foreign content distributors could reinforce Ghana’s standing as a forward‑thinking African economy. Conversely, a protracted conflict could lead to a perception of an unstable business environment, deterring new investment and hampering the growth of an industry that has already begun to shape Ghana’s modern identity.

For now, the spat between MultiChoice and the Ghanaian government remains a stark reminder that policy ambition and corporate interests must find common ground. The coming weeks will likely determine whether Ghana can keep its reputation as a safe haven for foreign investment intact or whether the dispute will create a ripple effect that shakes investor confidence across the continent.