UNCTAD urges Ghana to promote debit card usage to match 72% penetration rate of bank deposit accounts
The United Nations Conference on Trade and Development (UNCTAD) has issued a set of recommendations to enhance Ghana’s e-commerce landscape.
In an assessment of the country’s e-commerce readiness, UNCTAD advised commercial banks to actively promote the utilization of debit cards. The objective is to elevate the penetration rate of debit cards, currently standing at 29%, to align with the bank deposit accounts penetration rate, which stands at 72%.
Furthermore, the report underscores the need for Ghana to engage in widespread awareness campaigns targeted at both consumers and sellers within the e-commerce ecosystem. The aim is to educate them on the advantages of online payments and, more broadly, to encourage adherence to e-commerce via electronic marketplaces.
UNCTAD’s recommendations stem from the observed challenges in the realm of payment solutions within the country. Notably, the report points out that despite the significant growth of mobile money and banking penetration rates, the dematerialization of payments remains limited in Ghana.
Also, the full interoperability between mobile money providers and banks, introduced by the Bank of Ghana in December 2018, has not yet led to broad-scale adoption.
Additionally, the high transaction costs associated with digital payments and prevailing trust issues continue to impede the widespread adoption of digitalized payments.
The eTrade Readiness Assessment of Ghana serves as a comprehensive effort to identify the key barriers and opportunities in the country’s e-commerce development across seven policy areas of eTrade. This diagnostic evaluation of Ghana’s digital ecosystem also aims to pinpoint key policy actions that can be mobilized to bolster the growth of e-commerce in the nation.
The assessment of Ghana’s readiness for e-commerce has unveiled a promising landscape marked by both substantial potential and a clear interest in nurturing the digital economy and e-commerce sector.
