The Bank of Ghana (BoG) has suspended the planned 0.75% charge on mobile money (MoMo) to bank transfers. This decision follows strong opposition and accusations from the Minority in Parliament. Mobile network operator MTN Ghana had announced its intention to introduce these charges starting June.
This suspension comes after the Minority Group in Parliament alleged the new fee was a 'backdoor' attempt to reintroduce the Electronic Transactions Levy (E-Levy). The E-Levy, a 1.5% tax on electronic transfers, faced significant public backlash and contributed to a slowdown in digital transaction growth in Ghana. The proposed 0.75% charge would have applied to customers moving money from their mobile money wallets to traditional bank accounts.
The debate around digital transaction fees fits into Ghana's broader economic narrative of increasing tax revenue and formalizing the economy. The government has sought ways to broaden its tax base and capture revenue from the growing digital economy. However, initiatives like the E-Levy have ignited public debate over affordability and access to digital financial services. Data has shown that high transaction costs can hinder the adoption of digital payments, especially among lower-income populations. The total public debt in Ghana recently rose to GHS 674 billion, underscoring the government's need for revenue generation.
The Minority's concerns highlight ongoing vigilance over new taxation methods and their impact on citizens. While no direct quote is available from the Minority, their position suggests a belief that the government is circumventing public opinion. They are effectively asserting that the proposed charge, regardless of its explicit purpose, would have a similar economic effect to the E-Levy. The Bank of Ghana, as the regulator, likely intervened to prevent further public discontent and to reassess the implications of such a charge.
Going forward, stakeholders will watch how the BoG and telecommunication companies address the issue of transaction costs. This incident underscores the sensitivity surrounding digital transaction fees in Ghana's financial sector. It will also influence future policy discussions on digital taxation and financial inclusion. The decision will affect millions of Ghanaians who rely on mobile money for daily transactions. Regulatory bodies will need to balance revenue generation with promoting accessible and affordable digital financial services.
Ghana's cedi depreciated 8.4% against the dollar in the first five months of 2026. This adds further pressure on economic policies that impact consumer spending and digital service costs. The banking sector and mobile network operators will adjust their operational plans in response to the BoG's directive. This suspension could lead to further consultations on appropriate pricing for digital payment services. It reinforces the significant role of public and political scrutiny in economic policy decisions.