The National Public Relations Officer of the Mobile Money Agents Association of Ghana, Mr. Charles Kwasi Addo, has demanded that the government help provide financial support and policy reforms to reboot the sector after the negative impact of the Electronic Levy (E-Levy) on mobile money business.
Speaking on the BIGISSUE on TV3 on March 27, Mr. Kwasi Addo stressed that the implementation of the E-Levy has had a devastating impact on their businesses, as many customers have been unwilling to pay the additional cost.
“Most of our businesses were folded up. Most agents had two, three, or four outlets, but because people were so scared that when they sent money, there were additional charges, they sought alternatives and withdrew their services with us.” He explained
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Additionally, he emphasized the importance of mobile money transactions to the economy, noting that the uncertainty that was created by the E-Levy discouraged banks from providing loans to mobile money agents, which further complicated their challenges.
“Most banks were scared because they could not do the predictability,” he said.
He added that those willing to offer loans did so at very high rates, making it difficult for agents to sustain their businesses
Mr. Kwasi Addo therefore called for the intervention of the government. He believes that government intervention is important to restoring trust and stability in the sector.
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He also called for targeted support such as soft loans for agents to help them rebuild their businesses and ensure the financial sector remains strong.
“Government should invest much in the mobile money sector by financing the agents with soft loans that will help them to meet the needs of prospective customers in order to boost the local economy.”
Yesterday, March 26, 2025, Ghana’s Parliament approved the Electronic Transfer Levy Repeal Bill 2025, which will effectively abolish the controversial E-Levy that had been in place since 2022.
The Electronic Levy (E-Levy) was introduced in May 2022 as a 1.5% tax on electronic transactions but was later reduced to 1%.
The policy was implemented to help increase government revenue but was met with strong public resistance, as many Ghanaians reduced their mobile money usage and started using cash transactions and alternative digital platforms to avoid charges.
As a result, mobile money agents in the country’s financial ecosystem saw a sharp decline in business, which resulted in many closing multiple outlets.
Despite warnings from most of the mobile money agents about the potential negative impact, the government proceeded with the levy, which led to widespread financial strain and a loss of confidence in the system.
The Mahama administration promised to scrap the levy with some other taxes when voted in power. he reiterated his fulfillment of the promise after he was sworn in as president in 2025.