New data[1] released by Ghana’s central bank, the Bank of Ghana, shows the total value of mobile money transactions in June rebounded sharply, rising 27 percentage points from a -19% decline in May to 8% (Fig 1).
Fig 1. Change in Mobile Money Transactions – %: March to June 2022
The strong rebound follows a -3% month-on-month decline in April, from GH¢90.5 billion in March to GH¢87.7 billion, ahead of the coming into force of the Electronic Transactions Levy (E-Levy) in May, and an even larger one in the month of May (-19%). In net terms however, it still remains in negative territory since March at -13.3% as users adjust to the levy and telcos iron out teething problems (Table 1).
Table 1. Mobile Money Transactions – Value: March to June 2022
| Month | GH¢ -Billions | M-o-M Change (%) | Cumulative/Net Change (%) Since March |
| March | 90.5 | ||
| April | 87.7 | -3.1% | |
| May | 71.4 | -18.6% | -21.7% |
| June | 77.4 | 8.4% | -13.3% |
| Source: Bank of Ghana, with additional analysis by Evron R. Hughes |
Mobile money platforms are an essential part of Ghana’s electronic payments ecosystem, and the levy was met with significant opposition ahead of implementation. Against that backdrop, several analysts predicted a much steeper decline, with two surveys showing potentially very high attrition rates at 49%[2] and 83% respectively.[3]
The data from Bank of Ghana, though still too early to draw definitive conclusions from, seems more aligned to our prognosis in April that “some will exit the market for a while, some never to return,” but also, that “it is also expected that the arc of utility will bend towards the convenience, speed, and price-efficiency of these e-transactions and eventually the market will achieve “equilibrium.”
“…arc of utility will bend towards the convenience, speed, and price-efficiency of these e-transactions and eventually the market will achieve “equilibrium.”
[1] https://www.bog.gov.gh/wp-content/uploads/2022/07/Summary-of-Economic-and-Financial-Data-July-2022_1.pdf , Accessed July 25, 2022
[2] CDD, https://cddgh.org/ghanaians-oppose-e-levy-not-confident-it-will-fund-development-programmes/ , Accessed July 25, 2022
[3] IMANI, https://www.theghanareport.com/e-levy-83-of-ghanaians-ditch-mobile-money-transactions-imani-survey/ , Accessed July 25, 2022