Mobile money transactions are beginning to see commendable growth, just as they did prior to the implementation of the Electronic Transaction Levy (E-Levy), according to data from the Bank of Ghana.

The central bank reported that the total value of mobile money transactions as of August 2022 was GH87.08 billion, an increase of 12.8% from GH¢77.2 billion in July, in its most recent Summary of Financial and Economic Data.

Before the e-levy went into effect, mobile money transactions had a value of GH¢76.2 billion in January 2022, GH¢76.8 billion in February, GH¢90.5 billion in March, and GH¢87.7 billion as of April 2022.

The first few months following the e-levy’s enrolment in May 2022 saw a decline in mobile money transactions across all networks because many Ghanaians opposed its implementation.

The total value of MoMo transactions in May drastically FanMilk PLC, a Danone Company, has launched three green initiatives at its North Industrial Area Plant in Accra on Saturday, October 8, 2022, as part of global efforts to accelerate the transition to net-zero carbon emissions.

The projects, a wastewater treatment plant, a biomass boiler, and a solar power installation, which cost a total of €7 million, are a demonstration of Danone’s ‘One Planet One Health’ goal and reaffirm the company's leadership in sustainability across the globe.

Danone’s Africa, Asia, and Middle East President Christian Stammkoetter, speaking at the launch of the Green Projects, said: “we are all witnessing the unprecedented effects of climate dropped from GH¢87.7 billion to GH¢71.4 billion, a decrease of about 18.6%.

People who stopped using MoMo due to the e-levy seemed to have realized their need for it and signed back on. This is because by June 2022, the value of mobile money transactions had increased to GH¢77.4 billion.

There was a shortfall of GH¢2 million from June to July. Compared to the sharp decline in May, the reduction in July was minimal.

The significant increase of GH¢9.88 billion from July to August due to 477 million transactions makes a compelling argument that the levy is beginning to integrate well into society.

As of August 2022, there were 52 million registered mobile money accounts and 20 million active mobile money accounts. Registered MoMo agents also stood at 642,000, with 472,000 being active.

E-levy not generating enough revenue

The government has disclosed that the E-levy is not raking in enough revenue as expected.

According to relevant stakeholders, about 10 percent of the projected value of GH600 million every month has been raised. Government has announced that the revenue generated from the

levy would be used to build more roads and ensure infrastructural development.

Meanwhile, reports have it that the government will review the e-levy to ensure tax compliance. Prior to its implementation, some Ghanaians recommended a rate of one per cent or less.

Source: The Independent Ghana