The Deputy Minister of the Ghanaian Ministry of Communications, Mr Edward Ato Sarpongos, held a briefing session regarding the government’s planned rollout of digital terrestrial television set-top box (STB) supply for the nationwide analog broadcast signal switch off for interested parties in Accra, on the 7 August 2015.
The ministry’s briefing and supporting document stipulates that the government shall award a contract to one or two private sector entities to provide a phased rollout of 600 000 to 1,2 million STBs to Ghanaian citizens categorised as economically vulnerable.
STB provision is to be phased in very rapidly from Q4 2015 with completion by Q1 2016. A key element of the contract is that set-top box provision must be for two types of models, a conditional access controlled (CA) satellite Direct to Home (DTH) unit and a free to air (FTA) digital terrestrial television (DTT) model. Respondents must be Ghanaian owned entities and the majority of units must be assembled locally with a medium term sustainable employment creation programme.
Sarpongos has stated that the government estimates there are 5 to 6 million Ghanaian homes that shall require FTA DTT set-top boxes and governmental policy is job creation through local assembly rather than import or complete local manufacture. This local assembly policy
is sound in that a local assembly industry creates a high percentage of the jobs as achieved through a complete assembly process as provided by most electronic contract manufacturers.
A comparison of a complete electronic product manufacture assembly process compared to a local assembly product process shows that a local assembly process utilises 80% of the labour force required for complete product manufacture without the need for capital intensive high-technology equipment investment.
Evaluation of the country required STB quantities and the government contract request indicate that the government is expecting the private sector to provide the majority of the required FTA DTT set-top boxes for the marketplace when the analog signal switch off occurs. Due to the government contract requirement on local assembly it can be deduced that the Ghanaian government is intending to create a platform from which private sector providers shall continue with local STB assembly operations post the fulfilment of the government contract.
An inhibitor to government policy and intent is that there has been no provision or indication of duty incentives that favour local assembly of set-top boxes over complete imported units. While government policy to stimulate the local assembly industry is sound, there is a gap in planning due to the absence or non-communication of a customs and excise policy that supports the ministry’s local assembly policy. The outcome is that a limited duration local assembly initiative shall be created and that the vast majority of STB requirements shall be met through product import rather than local assembly.
For more information contact Peter Griffiths, Arrow Altech Distribution, +27 (0)11 923 9600, pgriffiths@arrow.altech.co.za, www.arrow.altech.co.za
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