In the 2024 mid-year budget review, PricewaterhouseCoopers (PWC) advocates for adopting a digital method for reintroducing road and bridge tolls.

The firm highlighted that adopting digital technologies, similar to those used in other revenue collection areas, could notably decrease revenue loss and corruption.

PWC suggested that the government should introduce a system where drivers utilize prepaid swipe cards connected to their Ghana Card, the national ID.

“Our recommendation is that government goes digital as they have done in other aspects of revenue collection. We believe providing drivers with prepaid swipe cards which are linked with their identity card (Ghana Card) will prevent revenue leakage and corruption, and also make the toll collection seamless,” the firm stated in its digest.

Moreover, PWC emphasized that the revenue from tolls should be allocated specifically for the construction and upkeep of highways and bridges, ensuring that the funds are used as intended.

The government's proposal to reinstate road and bridge tolls in 2025 has generated significant debate. Road tolls were suspended in 2022 and replaced by the electronic transactions levy (E-levy). Although the E-Levy initially faced opposition, it managed to generate GH¢1.19 billion in 2023. However, its effectiveness may be jeopardized by recent trends in the mobile money (MoMo) sector.

Data from the Bank of Ghana (BoG) shows a noticeable decrease in mobile money transactions. In June 2024, the total number of MoMo transactions dropped to 644 million, down from 668 million in May 2024.

This decline also affected the total transaction value, which fell from GH¢234.3 billion to GH¢224 billion. Despite the overall decrease, the float balance—representing funds held in mobile money accounts—slightly increased from GH¢21.1 billion to GH¢22.2 billion.

The sharp reduction in MoMo transactions could undermine the effectiveness of the E-Levy, a vital revenue source for the government. In light of these developments, PWC’s recommendation for a comprehensive digital toll collection system appears particularly timely.

“We expect that the new framework will be as robust as possible, incorporating digitalisation in this space of revenue generation,” PWC mentioned.

This comes as concerns over the cost and reliability of mobile money (MoMo) appear to be on the rise. Over the past two weeks, several social media commentators have expressed dissatisfaction with MoMo, highlighting issues such as high transaction fees and frequent network downtimes.

These concerns were echoed in an interview with Nana Kwabena Barimah, a seller of building materials who shared his experiences and growing frustrations with the mobile money service. Barimah explained that he has increasingly turned to traditional banking services, including the use of Automated Teller Machine (ATM) cards and bank cheques, to manage his transactions.

“I use a bank that’s close to my shop, and it has served me well. The costs associated with MoMo and occasional network downtimes are becoming too much for us,” he said.

“It’s not just about the fees; it’s also about the reliability. There have been times when I couldn’t complete transactions due to network issues, which affects my business operations. With my bank, I have more consistent access to my funds and the transaction fees are more predictable,” he added.