Why Ghana is the Fastest Growing Mobile Money in Africa

Mobile money transaction has emerged as the most preferred digital payment method in Ghana, according to research conducted by a Research Team at Stanbic Bank Ghana. The mobile money subscribers increased by 15% in 2020, with an estimated value of transactions at GHS 589 billion (about $100 billion).

This has been attributed to low internet penetration relative to other African countries; Ghana’s internet penetration level is relatively lower than developed markets, highlighting further growth. Unlike other digital payments methods, which require a stable internet connection, mobile money works with a USSD code, making it the most preferred mode of digital payment in the country; and also Covid-19 pandemic contributed to the adoption of the service surge. Further, Ghana is known to have the highest mobile subscription amongst fellow West African sub-region.

The mobile subscription in Ghana represented 43 million, equivalent to a 7 per cent year-on-year increase compared to other sub-region countries in West Africa. The growth and impact of mobile money within Ghana’s financial ecosystem have led widespread web-based service providers, causing the government to introduce legislation and bodies to regulate the sector. The enormous growth of mobile money has led to establishing the Fintech and Innovative Division of the Bank of Ghana. As well the passing into law of the Payment System and Services Act of 2019 (Act 987),”

It is interesting to know the impact of the COVID-19 pandemic on the telecommunications sector has led to increased in fixed data speed and patronage of data centres. As a result, the country recorded a 35 per cent increase in fixed data speed following the COVID-19 outbreak. Also, the need to work remotely led to the increased patronage of the data centre, which became paramount for companies; government officials were directed to work from home to curb the spread of the virus due to the national lockdown. While the report further highlighted the massive contribution from this sector to the government GDP. Including the telecom sector comprising mobile network operators, tower companies, internet services providers, data centres, fintech, radio and TV stations, and satellite TV service contributed 3% to Ghana GDP.

Meanwhile, this height of mobile money’s adoption rate has also been touted to the timely policies to encourage Ghanaians to use this service. Apart from the virus spread, prompting the authorities to announce a national lockdown and discourage the masses from using paper money to curb the virus. The policies introduces over the years played a huge role, such as the Bank of Ghana’s reduction in the mobile money interoperability charge, which used to be 1.5 per cent and reduced to 1 per cent.

The mobile money interoperability payment system has made it easy to transfer money across different telecos and between bank account and mobile wallets, which is a unique feature of Ghana’s interoperability. And as mentioned in the article, the authorities advise company workers and government employees to work from home; this aid increases internet usage, contributing colossal revenue to the teleco sectors.

All the timely hilled policies in reducing mobile money fees and its interoperability and crisis have ranked it 4th in Africa for financial inclusion. Aiding the different sectors of the economy which has significantly benefited from it, such as the gambling industry, e-commerce, and a host of others businesses, is why Ghana has been regarded as Africa’s fastest mobile money growth.

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