A Ghanaian tech entrepreneur has cautioned that a proposed law to regulate the country’s digital sector could unintentionally burden startups and slow innovation, despite its stated goal of strengthening oversight.

Henry Cobblah told the Asaase Breakfast Show on Wednesday (27 May) that while the draft legislation reflects a “commendable vision” by government to organise the technology ecosystem, key provisions remain unclear and potentially excessive.

“It seeks to give us direction… but there are critical questions about what exactly we are trying to build and open up for innovation,” he said.

Cobblah raised concerns about proposed licensing regimes and compliance structures, warning that they could create bureaucratic bottlenecks for developers already navigating complex regulatory environments.

Drawing on his experience in the fintech sector, he noted that even existing processes—such as central bank licensing and international certifications—are resource-intensive.

“You are adding another layer of agencies… it becomes a whole process where you have to go through headaches,” he said.

He argued that excessive regulation risks turning innovation into a compliance-heavy exercise, particularly for startups operating with limited capital.

Beyond regulatory concerns, Cobblah questioned the state’s broader support for the tech ecosystem, pointing to gaps in infrastructure, funding, and capacity building.

“The question is what is the government really doing to help these innovations rather than regulating them,” he said.

He cited examples of locally built technologies gaining traction without state backing, including fintech systems used widely by merchants, and said more structured support could help scale such solutions.

Cobblah also warned that unclear or burdensome rules could accelerate the migration of skilled developers to more supportive markets.

“People are just walking out of the country… looking at environments that suit them to build,” he said.

With African countries such as Nigeria, Kenya, Rwanda and South Africa competing for digital investment, he said Ghana must strike a careful balance between regulation and growth.

“We are at a critical point where we can leapfrog or we can stifle innovation,” he said.

He urged policymakers to prioritise practical implementation frameworks, streamline regulatory processes, and invest in education and digital infrastructure to ensure the sector’s long-term competitiveness.