Mobile Money transactions surpass GHS 550bn, marking 66.2% YoY growth
In a remarkable display of strength and resilience, Ghana’s mobile money sector has witnessed an unprecedented surge, with total transactions for the first four months of 2023 surpassing ¢550 billion. This marks an impressive year-on-year growth rate of 66.2%, according to recent data released by the esteemed Bank of Ghana.
Comparatively, during the same period in 2022, mobile money transactions amounted to ¢331.2 billion, showcasing a significant acceleration in the adoption and usage of mobile money services across the country. Should this upward trend persist, it is highly likely that the total mobile money transactions for this year will once again exceed ¢1 trillion, reaffirming Ghana’s position as a leader in mobile financial services in the region.
Delving into the specifics, the Bank of Ghana’s May 2022 Summary of Economic and Financial Data revealed that mobile money transactions in January 2023 reached an estimated ¢130.1 billion, a substantial leap from the ¢76.2 billion recorded during the same period in the previous year. This upward trajectory continued into February, with transactions soaring to ¢134.0 billion, significantly surpassing the corresponding figure of ¢76.5 billion in February 2022. In March 2023, mobile money transactions surged even further, reaching ¢147.5 billion compared to ¢90.5 billion in March 2022.
However, April 2023 witnessed a slight dip, with mobile money transactions falling to ¢138.8 billion (compared to ¢87.7 billion in April 2022). Despite this minor setback, the overall growth trajectory remains undeniably impressive, solidifying the mobile money sector’s pivotal role in Ghana’s financial landscape.
Interestingly, this remarkable surge in mobile money transactions comes at a time when the country implemented a 1% Electronic Transaction Levy (E-Levy), aimed at generating additional revenue. Contrary to expectations, the imposition of this levy has not dampened the usage of mobile money services; rather, it has acted as a catalyst for accelerated growth. The data indicates that mobile money transactions have continued to surge since the implementation of the E-Levy in May 2022 at a slightly higher rate of 1.5%.
Recognizing the potential impact of this tax on the economy and to alleviate the burden on consumers, the Ghanaian government, on 11 January 2023, reduced the E-Levy rate from 1.5% to 1.0%. This adjustment reflects a proactive approach by the government to balance revenue generation with fostering a conducive environment for digital financial services to thrive.
While the mobile money sector has experienced robust growth in terms of transaction volumes, revenue generation has fallen below the government’s initial expectations. The reasons behind this discrepancy are multifaceted and require a comprehensive examination of various factors, including consumer behavior, market dynamics, and the overall economic climate. It is important for policymakers and industry stakeholders to collaboratively explore strategies that can optimize revenue streams from mobile money services without hindering their remarkable growth trajectory.
Ghana’s mobile money sector has showcased remarkable strength and resilience, surpassing ¢550 billion in total transactions for the first four months of 2023. This exponential growth, with a year-on-year increase of 66.2%, underscores the increasing adoption and usage of mobile financial services in the country. As mobile money transactions are projected to exceed ¢1 trillion for the year, Ghana solidifies its position as a regional leader in the mobile money ecosystem.
