Ghana’s central bank governor, Dr. Johnson Pandit Asiama, has endorsed the government’s abolition of the controversial electronic transfer levy (e-levy), calling it a catalyst for financial inclusion and fintech growth.
The move coincides with a surprise 100 basis-point hike in the monetary policy rate (MPR) to 28%, marking the first increase in nine months amid persistent inflation pressures.
Speaking at his inaugural post-Monetary Policy Committee (MPC) press conference, Asiama hailed Parliament’s decision to scrap the 1.5% levy on electronic transactions, enacted in 2022 to widen the tax base but criticized for stifling digital payments. “The removal sets the tone for innovation that drives affordability and inclusion,” he said, revealing that the Bank of Ghana (BoG) is drafting regulations to license standalone digital banks. These institutions would operate without physical branches, relying solely on mobile platforms to serve unbanked populations.
Currently, Ghana’s payment providers must partner with traditional banks to hold customer funds. The proposed framework, expected in coming months, aims to loosen this requirement, allowing fintechs to function as full-service digital banks. “This is the next phase of our banking evolution,” Asiama said, noting surging investor interest in digital licenses.
The MPC’s decision to raise the MPR to 28%—the first increase since February—split the committee, with Asiama confirming it was a “majority decision” rather than unanimous. Headline inflation dipped marginally to 22.8% in June but remains above the central bank’s target, driven by stubborn food inflation (27.1%) and elevated core prices.
To tighten liquidity, the BoG announced three measures: introducing a 273-day securities instrument, stricter monitoring of banks’ foreign exchange exposures, and a review of cash reserve ratio policies. Asiama also acknowledged “inadequately capitalized” local banks still reeling from losses tied to the 2022 domestic debt restructuring but pledged support to stabilize the sector.
The e-levy’s abolition, ratified in the 2025 budget, aims to revive mobile money transactions, which plummeted 24% after the tax’s introduction. Analysts warn, however, that the fiscal impact—forecast to cost $320 million annually—could strain Ghana’s $3 billion IMF program unless offset by improved compliance or alternative revenues.
For fintechs, the shift signals opportunity. “Digital banks can bridge gaps for rural SMEs and savers,” said Kofi Yamoah, CEO of mobile money firm Zeepay. Yet challenges linger: internet coverage gaps, cybersecurity risks, and regulatory delays. Asiama urged patience, stating the BoG’s priority is “innovation without compromising stability.”
With inflation still volatile and debt restructuring ongoing, Ghana’s policy pivot underscores the tightrope walk between stimulating tech-driven growth and maintaining macroeconomic discipline—a balance the central bank insists is achievable. “The path forward demands prudence,” Asiama said, “but also boldness to embrace digital futures.”
