Mobile money transactions in Ghana surged to GH¢ 1.77 trillion in the first eight months of 2024, marking a significant 72% increase from GH¢ 1.03 trillion during the same period in 2023, according to statistics release from the Central Bank’s Economic and Financial Data report. This rapid growth highlights the expanding role of digital financial services in the country, driven by increased usage for payments, savings, and transfers among both individuals and businesses.
Despite the impressive rise in transaction volumes, the performance of Ghana’s Electronic Transaction Levy (E-Levy), aimed at taxing digital transactions, has been underwhelming. The tax has not generated the expected revenue, raising concerns about its enforcement and the potential for consumers to find ways to minimize their tax liabilities. Policymakers are focusing on closing this gap between high transaction volumes and tax revenue collection as the digital economy continues to grow.
The Bank of Ghana’s summary of Economic and Financial Data for September 2024 highlights fluctuating monthly transaction values. In January 2024, mobile money transactions pegged at GH¢198.4 billion, decreased slightly to GH¢195.8 billion in February, before declining further to GH¢181.9 billion in March.
However, April saw a rebound to GH¢203.0 billion, followed by a continued rise to GH¢234.3 billion in May. Transaction values went down slightly again in June to GH¢224 billion, before climbing steadily in July and August which recorded GH¢264.9 and GH¢273.6 billion respectively. The data, released by the Bank of Ghana, also showed fluctuating monthly transactions, with a steady increase from January’s GHS 198.4 billion to GHS 273.6 billion in August.
The discrepancy between rising transaction volumes and modest tax collection suggests challenges such as enforcement issues and possible shifts in consumer behavior to avoid the levy. This has raised concerns about the efficiency of the e-levy and its impact on digital financial transactions, even as mobile money continues to deepen financial inclusion in Ghana.
