MoMo transactions hit GHS 859m; projected to reach GHS 1 trillion by July

Ghana’s mobile money sector has witnessed a remarkable surge, setting a new record with total transactions reaching ¢859 billion in the first half of 2023, according to the Bank of Ghana’s latest data. This substantial growth represents a sharp increase from the ¢480 billion recorded during the same period in the previous year, signaling a robust adoption of mobile money services in the country.

The January 2022 Summary of Economic and Financial Data released by the Bank of Ghana revealed that mobile money transactions in January 2023 were estimated at ¢130.1 billion, compared to ¢76.2 billion in January 2022. The upward trajectory continued in the subsequent months, with February 2023 witnessing transactions of ¢134.0 billion, compared to ¢76.5 billion in February 2022. March 2023 followed suit with a transaction volume of ¢147.5 billion, surpassing the previous year’s ¢90.5 billion.

In April 2023, despite a slight dip to ¢138.8 billion (compared to ¢87.7 billion in April 2022), the mobile money sector regained momentum, soaring to ¢159.7 billion in May 2023, a significant increase from ¢71.4 billion in May 2022. Subsequently, June 2023 recorded ¢149.4 billion in transactions, compared to ¢77.1 billion in June 2022.

Surprisingly, this impressive surge in mobile money transactions occurred despite the introduction of the 1% Electronic Transaction Levy (E-Levy) in May 2022, which was later reduced to 1.0% on January 11, 2023. The E-Levy, initially implemented at a 1.5% rate, aimed to bolster government revenue; however, the current data indicates that revenue has fallen short of expectations.

Nonetheless, the total value of Mobile Money Interoperability during the first six months of 2023 reached an estimated ¢16.895 billion, highlighting the growing importance of interoperable mobile money services in facilitating seamless transactions.

Ghana’s mobile money ecosystem remains a pivotal driver of financial inclusion, revolutionizing the way citizens conduct financial transactions. The burgeoning mobile money sector not only empowers the unbanked and underbanked but also serves as a catalyst for economic growth and digital financial innovation.

With the trend indicating a potential milestone of one trillion cedis in mobile money transactions by the end of July 2023, stakeholders in Ghana’s financial landscape must closely monitor this dynamic sector and adapt policies accordingly to leverage its full potential for sustained economic development.

Source: Norvanreports