E-levy: MoMo transactions drop again

The value of mobile money transactions has dropped again by 50 percent following the commencement of the implementation of the Electronic Transaction levy (E-levy) on Sunday, May 1, 2022.

Mobile money

Reports stated that there have been massive withdrawals across the country on Saturday, April 30, 2022, before the E-levy started on Sunday.

A rate of 1.5% will be imposed on all electronic transactions above GH¢100.

The Public Relations Officer of the Mobile Money Agents Association of Ghana, Joshua Edmundson said MoMo transactions have dropped by 50 percent.

In an interview on Accra-based Adom FM, he said the lack of adequate education is to blame for the panic withdrawals by customers.

According to him, deposits, withdrawals/cashouts, and savings on MoMo wallets have been affected by the new tax policy.

He stated that "The sector has created 1.5 million jobs so there is the need for government to help us sustain the mobile money business."

He, therefore, appealed to the government to intensify education and public sensitization to clear the doubts in the minds of Ghanaians.

"I believe with public education these panic withdrawals will stop. I want urged my agents not to panic," he noted.

Already in February, data published by the Bank of Ghana (BoG) has revealed that the value of mobile money transactions has dropped by GH¢3.2 billion in December last year.

According to the report, the value of transactions on the country’s largest payment platform decreased to GH¢82.9 billion in December from GH¢86.1 billion recorded in November 2021, representing a 3.8 percentage points decline.

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