The Mobile Money Advocacy Group Ghana (MoMAG) has expressed optimism that the planned removal of the E-levy will significantly enhance mobile money business operations and encourage customer engagement.
Finance Minister-Designate Dr. Cassiel Ato Forson, during his vetting, announced the government’s intention to abolish the E-levy in its first budget.
Speaking at an induction ceremony for the association’s new executives, MoMAG President Edward Ofori Agyemang highlighted the impact of the levy on customer behavior. He noted that the E-levy discouraged deposits, as customers often sought to avoid the additional charges.
“Before the E-levy, customers used to deposit money and send it through their wallets. However, the levy led many to ask agents to send money directly to avoid the tax,” Agyemang explained.
He welcomed the government’s decision, stating, “It is a happy moment for us. Abolishing the E-levy will enhance our business and encourage more customers to deposit money into their wallets.”
The E-levy, introduced as a tax on electronic financial transactions, faced widespread criticism for deterring digital payments and negatively impacting businesses, especially among the unbanked population heavily reliant on mobile money services.
Industry stakeholders believe that scrapping the levy will not only increase mobile money usage but also stimulate broader economic activities.
Meanwhile, the Bank of Ghana has urged stakeholders in the mobile money sector to focus on safeguarding the industry and ensuring its continued growth.
Director of Fintech and Innovation at the Central Bank, Kwame Oppong, stressed that mobile money services are critical to advancing financial inclusion and expanding access to financial services for underserved populations.
“The lessons that I learnt from her [Mrs Eli Ohene Adu] all the way back to even those who even dreamt of this happening in Ghana and those who have walked this journey is that we collaborate and make sure we can carefully build a regulatory framework that ensures that as a Central Bank, no matter what we do a regulator is a regulator. We have to protect individuals and the sector first then we also have to figure out within that equation how we help you grow,” he said.
Kwame Oppong further disclosed that Ghana has been ranked as the best in the world for Mobile Money regulation, according to the 2024 GSMA Mobile Money Regulatory Index (MMRI).
