Mobile Money hit record GH₵3 trillion in 2024

Ghana’s financial sector has witnessed a remarkable surge in mobile money transactions, with the total value reaching an unprecedented GH₵3.0192 trillion in 2024.
This represents a staggering 57.90% year-on-year growth, up from GH₵1.912 trillion recorded in 2023, according to data from the Bank of Ghana.
The exponential growth underscores the increasing reliance on digital financial services in Ghana, providing opportunities for further financial inclusion.
However, despite the surge in mobile money transactions, concerns persist over the nation’s inability to generate substantial revenue from the Electronic Transaction Levy (E-Levy).

Unprecedented growth in mobile money usage
The Bank of Ghana’s data reveals a consistent upward trajectory in mobile money transactions throughout 2024.
In the first eight months of the year alone, transactions amounted to GH₵1.775 trillion.
By October 2024, this figure had jumped to GH₵2.368 trillion, demonstrating the widespread adoption of mobile money services.
Breaking down the monthly trends, the year began with mobile money transactions totaling GH₵198.4 billion in January.
While there was a slight dip to GH₵195.8 billion in February and GH₵181.9 billion in March, transactions rebounded strongly to GH₵203.0 billion in April and GH₵234.3 billion in May.
By mid-year, transactions slightly declined to GH₵224.0 billion in June but surged again to GH₵264.9 billion in July and GH₵273.6 billion in August.
The final months of the year saw even more impressive figures, reaching GH₵284.9 billion in September, GH₵298.6 billion in October, GH₵316.4 billion in November, and GH₵334.8 billion in December.

E-Levy revenue remains a concern
Despite the record-breaking mobile money transactions, the country has struggled to generate substantial revenue from the E-Levy.
The underperformance of the tax raises questions about compliance, enforcement, and possible loopholes in the taxation framework.
Economic analysts suggest that the low revenue from the E-Levy could be attributed to consumer adaptation strategies, such as limiting transactions that attract the levy, increased cash-based transactions, or a shift to alternative financial services that bypass the tax.

Ghana’s shift toward a cashless economy

The surge in mobile money transactions is a testament to Ghana’s rapid transition toward a cashless economy.
The convenience and accessibility of mobile money services have revolutionized financial transactions, allowing millions of Ghanaians, particularly those in rural areas, to access banking services with ease.
Data from the BoG also highlights substantial growth in other digital financial services, reflecting a broader trend of increasing reliance on technology for financial transactions.
This transformation is expected to boost economic activities, streamline payment systems, and enhance financial inclusion.

Future outlook
The impressive growth in mobile money transactions indicates a positive trajectory for Ghana’s digital economy.
However, addressing challenges surrounding the E-Levy’s revenue mobilization remains critical.
Policymakers may need to explore alternative taxation models or enhance enforcement mechanisms to ensure the levy effectively contributes to national revenue.
As mobile money continues to reshape Ghana’s financial landscape, stakeholders must strike a balance between fostering financial inclusion and ensuring sustainable revenue generation for national development.
Ghana has achieved a remarkable global milestone, being ranked as the number one country for mobile money regulation by the Global System for Mobile Communications Association (GSMA). This prestigious recognition places Ghana ahead of prominent countries like Qatar and Brazil, known for their advanced mobile money systems, according to the GSMA’s Mobile Money Regulatory Index (MMRI).
The MMRI, a comprehensive and interactive tool developed by the GSMA, assesses the regulatory frameworks of mobile money systems across 90 countries worldwide.
The latest rankings revealed Ghana as the global leader after excelling across six critical dimensions and 26 indicators of regulatory effectiveness.

A comprehensive evaluation framework
The MMRI evaluates countries on several dimensions, including authorisation, consumer protection, transaction limits, Know-Your-Customer (KYC) compliance, agent networks, and the investment and infrastructure environment.
Ghana’s mobile money regulatory framework emerged as the most efficient and robust after a detailed analysis of these areas.
Key aspects of the evaluation include authorisation processes, consumer protection measures like fund safeguarding and deposit insurance, and transaction limits designed to ensure inclusivity and security.
The index also examines the flexibility of KYC protocols, the effectiveness of agent networks, and the broader infrastructure supporting financial inclusion, affordability, and interoperability.

The strength of Ghana’s mobile money system
Ghana’s top ranking is underpinned by a well-structured mobile money ecosystem built on a robust national identity system.
The synchronisation of unique national identification with financial institutions and telecommunication networks has enabled seamless transactions between mobile money wallets and bank accounts.
This integrated system allows every mobile money wallet in Ghana to function as a bank account, significantly boosting financial inclusion across urban and rural areas.
The approach has reduced barriers to accessing financial services, allowing millions to participate in the formal economy.

A vindication of visionary leadership
The GSMA’s recognition is widely seen as a validation of the strategic leadership that drove Ghana’s mobile money revolution. Former Vice-President Dr. Mahamudu Bawumia has been credited with championing the implementation of Ghana’s mobile money interoperability system over the past eight years.
Dr. Bawumia consistently highlighted the critical role of technology in fostering financial inclusion, reducing transaction costs, and driving economic growth.
He lauded the collaborative efforts of stakeholders, including government agencies, telecom operators, and financial institutions, in making Ghana a global leader in mobile money systems.

Economic and social transformation
Ghana’s advanced mobile money system has had profound economic and social impacts.
By enabling secure and efficient financial transactions, the system has fostered business growth, particularly among small and medium-sized enterprises.
The interoperability of wallets and accounts has also made cashless transactions easier, promoting economic formalisation.
On the social front, mobile money has empowered individuals to save, invest, and access credit, transforming lives in underserved communities.
It has become a vital tool for remittances, utility payments, and even government disbursements, reinforcing its role in improving livelihoods and reducing poverty.

Ghana’s role as a global model
Ghana’s top ranking in the MMRI not only celebrates its achievements but also establishes the country as a model for others seeking to enhance their mobile money ecosystems.
By sharing its experiences and best practices, Ghana can lead the global dialogue on leveraging mobile money to drive financial inclusion and sustainable development.