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The Mobile Money Advocacy Group Ghana (MoMAG) has expressed optimism that the planned removal of the E-levy will significantly boost their operations and improve the mobile money ecosystem.
During his recent vetting, Finance Minister-Designate Dr. Cassiel Ato Forson announced plans to abolish the E-levy as part of the government’s first budget. The announcement has been met with enthusiasm from mobile money operators who view it as a positive step toward revitalizing their businesses.
Speaking at the induction ceremony for the association’s new executives, MoMAG President Edward Ofori Agyemang highlighted the challenges agents faced under the E-levy and welcomed the government’s decision to remove it.
“Now that the government has said it is going to abolish it [E-levy], it is a happy moment for us, and it is going to enhance our business. When there wasn’t E-levy, people used to come to the agents to deposit money and they would send it through their wallets. But when they introduced E-levy, people asked agents to send money directly because they wanted to avoid the E-levy,” he explained.
He further emphasized the expected benefits of the removal, saying, “We are fighting that the government should take off the E-levy, and we thank God the government is going to take it off. It will help us and also encourage more consumers to deposit money into their wallets.”
The E-levy, introduced as a tax on electronic financial transactions, faced widespread criticism for discouraging digital payments, particularly among the unbanked population heavily reliant on mobile money services. Industry stakeholders believe scrapping the levy will not only promote mobile money usage but also stimulate broader economic activities as more people embrace digital platforms for transactions.
Meanwhile, the Bank of Ghana has urged players in the mobile money industry to safeguard the sector’s growth and ensure its sustainability. Speaking at the same event, Kwame Oppong, Director of Fintech and Innovation at the Bank of Ghana, stressed the importance of mobile money in advancing financial inclusion.
“The lessons that I learned from her [Mrs. Eli Ohene Adu], and even from those who envisioned this happening in Ghana, emphasize the importance of collaboration. We must carefully build a regulatory framework that ensures, as a Central Bank, we protect individuals and the sector first. Within that framework, we also need to figure out how to help the sector grow,” Oppong said.
He also revealed that Ghana has been ranked as the global leader in mobile money regulation, according to the 2024 GSMA Mobile Money Regulatory Index (MMRI), a recognition that reflects the country’s commitment to innovation and regulatory excellence in the fintech space.