Prohibitive Insurance Barrier Excludes Startups

The GHS 10 million mandatory liability insurance requirement (approximately USD 1.7 million) creates a prohibitive barrier to entry for startups and smaller authentication service providers in Ghana's developing digital economy. Combined with the mandatory licensing regime 36 and non-transferable licenses, this provision will likely concentrate the authentication services market among a few well-capitalized operators, excluding innovative newcomers and reducing competitive pressure for technological advancement. While consumer protection is legitimate, the insurance amount appears disproportionate to Ghana's market size and typical transaction values, creating a risk-averse environment that discourages experimentation with new authentication technologies and business models essential for digital innovation.