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BusinessConsider reducing e-levy rate - Momo agents to gov't

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Consider reducing e-levy rate – Momo agents to gov’t

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The Mobile Money Agents Association of Ghana has renewed its call for the government to review the rates of the Electronic Transfer Levy (E-levy).

Their concerns align with recent discussions on financial inclusion at the ongoing 3i Summit in Accra.

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Introduced in 2022 to boost domestic revenue, the E-levy has been reduced from the initial 1.75 percent to 1.5 percent and subsequently to 1 percent following widespread criticism.

In an interview with Citi News, Evans Otumfuo, the General Secretary of the Mobile Money Agents Association, emphasized the need for a further review to enhance financial inclusion in Ghana.

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“We are going to make a case for the government to really as a matter of urgency consider reducing the e-levy rate. Because once that is done, we believe that we are going to get more of the value, and so the e-levy should be either scrapped or finally reduced to the barest minimum,” he stated.

He cited data from the Bank of Ghana showing increased usage of mobile money platforms following the rate reductions, advocating for the E-levy to be either further reduced or scrapped entirely.

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“We have always been advocating for conditions and policies that would encourage uptake of financial products and some of these policies. We believe if they are implemented, it will encourage the adoption of financial platforms and financial means of transactions.

“So, from the onset of e-levy, we strongly opposed the idea of placing a tax on mobile money with the idea that it is going to discourage the growth of the sector. Because there are a lot of consumers who may be shying away due to the cost applied on it.”

Otumfuo highlighted the association’s long-standing opposition to the E-levy, arguing that it discourages the adoption of mobile money services, thereby hindering sector growth.

He stressed that favorable policies are essential for encouraging the uptake of financial products and digital transactions.

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