GHANA: Total Mobile Money transactions fall by 2% year-on-year in August 2022; E-levy impact marginal

Total Mobile Money transactions as of August 2022 compared to the same period in 2021 fell by ¢13.3 billion, about 2.02%,  the latest Summary of Financial and Economic Data by the Bank of Ghana has revealed.

This indicates that the implementation of the Electronic Transaction Levy has had a marginal impact on the biggest payment system in Ghana.

But the question is why government is failing to rake in the needed revenue from the indirect tax based on the numbers from the Central Bank.

According to the data, total mobile money transactions stood at ¢657.6 in August 2022, as against ¢644.3 in August 2022.

There were earlier fears that a sizeable number of consumers were going to boycott Mobile Money, following the implementation of the E-Levy in May 2022.

So, it is not clear why the government is not raking in much revenue from the Mobile Money Transactions.

From the data, Mobile Money transactions have been surging since its implementation in May 2022.

It went up from ¢71.4 billion in May 2022 to ¢77.4 billion in June 2022, but remain relatively same at ¢77.2 billion in July 2022.

It however shot up significantly by ¢9.9 billion to ¢87.1 billion in August 202.

In May 2021, June 2021, July 2021 and August 2021, Mobile Money transactions were estimated at ¢86.5 billion, ¢89.1 billion, ¢99.1 billion and ¢81.8 billion.

The government had initially projected ¢6.9 billion from E-Levy collections for 2022, but revised it to ¢4.9 billion and later to ¢611 million.