A proposed draft bill seeking to expand the powers of the National Information Technology Agency (NITA) is triggering growing fears within Ghana’s technology ecosystem, with concerns that young developers and startup founders could face criminal penalties for building digital products without government licences.

The proposed NITA Draft Bill seeks to transform the agency into an independent regulator with sweeping oversight powers across Ghana’s digital economy.

Among its key proposals are mandatory licensing for ICT businesses, government certification for ICT professionals, regulation of emerging technologies such as AI and blockchain, and a proposed one per cent levy on ICT services.

But speaking on Joy News’ PM Express on Monday, technology analyst and consultant Barnabas Nii Laryea warned that the bill could create dangerous barriers for innovation and entrepreneurship.

Responding to a question about why a young self-taught developer should be worried, he said the bill’s broad wording creates uncertainty across the entire tech sector.

“I think you should be worried, because regulation can go as far as lowering the barriers to innovation rather than creating the kind of enabling environment that you want to see,” he said.

He pointed specifically to provisions requiring all ICT businesses to obtain licences before operating.

According to him, the bill states that “a person shall not engage in a business or related activity in the ICT sector, unless that person has been granted a license.”

He argued that the definitions within the draft law are too broad and leave critical questions unanswered.

“Does a web developer need a license? Does a website developer need a license? Does a student who is just building simple SaaS products, even in KNUST today, need a license? Does a startup founder need a license before they launch?” he asked.

Mr Laryea warned that the lack of clarity creates fear and uncertainty for young innovators trying to build businesses.

“So we cannot build, or we cannot make new laws and keep the laws in ambiguity, even at the point of passage,” he stated.

He also criticised the speed with which government is pursuing multiple ICT-related bills at the same time.

“We talked about 15 bills that the ministry is pushing. For any public policy standpoint, it’s overly ambitious,” he argued.

According to him, the rush has created suspicion within the tech community.

“For everybody that’s in the space, everybody that has played in this space for a long time, the first thing you are thinking about is what are they hiding,” he said.

Mr Laryea further warned that the bill could effectively criminalise innovation if passed in its current form.

He referenced provisions imposing penalties for operating without a licence, including fines and possible imprisonment.

“Imagine a 22-year-old Ghanaian launches a scheduling app. Three months later, NITA decides that this app falls under a category that requires licensing. The founder could technically become non-compliant,” he explained.

“This is not how modern innovation ecosystems are built,” he added.