Industry News Page | Telecoms Chamber

Over 70% of Ghanaians Trust Mobile Money- Afrobarometer


Afrobarometer Report on public confidence in the safety of Ghana's financial institutions, following the clean up in the sector, indicates over 70% of Ghanaians trust mobile money more than other financial institutions.

The report put together by CDD-Ghana noted that in spite of the cleanup, 83% of Ghanaians still trust in banks, but the reputation of savings and loans, microfinance and traditional susu companies has declined considerably.

Only 8% of the 2,400 Ghanaians surveyed said they will save with savings and loans; another 8% trust in traditional susu, while 7% says they still trust microfinance companies.

Meanwhile, some 11% say they would rather keep their money at home instead of saving with any financial institution.

But even though mobile money is about the latest addition to the options in the financial sector, a whopping 72% of respondents say they either trust it fully or trust it somewhat.

MoMo Stats

Public confidence in Mobile Money is indeed aptly reflected in the subscription, and transaction volume and value figures released by the Telecoms Chamber recently.

The figures indicate that currently, there are 13 million active mobile money wallets, doing 4 million transactions daily, and the balance of cash floating on the mobile money platform is a whopping GHC2.6 billion at any point in time.

The Chamber also noted that last year alone, telecom operators paid GHC2.2 billion in taxes, and that included taxes on the revenue they make from mobile money services.

Afrobarometer Monitoring and Evaluation Officer at CDD-Ghana, Samuel Adusei Baaye told Adom News Mobile Money is clearly a key driver of financial inclusion and needs to be protected from fraudsters and from over taxation.

He said plans by the Communications Ministry to tax mobile money fees of the telcos is a threat to the growth of the service and its role in boosting financial inclusion.

Samuel Adusei Baaye argued that whatever tax government places on the mobile money earnings of telcos will be transferred to customers and that can discourage usage of the service and thus affect financial inclusion negatively.

MoMo earnings

The Communications Minister, Ursula Owusu Ekuful has said her target is not to burden customers with taxes on mobile money services, but to tax the estimated GHC71 million services charges that telcos earn from mobile money every month.

But she, herself, admitted that her colleague Finance Minister, Ken Ofori- Atta disagrees with her call for the state to tax the earnings of telcos from Mobile Money outside of what they already pay as part of their taxes on all their revenue streams.

The CDD-Ghana official says he agrees with the position of the Finance Minister, because "we are already grappling with the 9% Communications Service Tax (CST) so adding on another tax will not be good for mobilising funds into the financial sector for national development."

He believes the more affordable Mobile Money services are, the higher the potential for it to mobilize more money into the financial sector, which can then be accessed by companies to expand and create more jobs and impact lives directly.

"It is understandable that government needs to find innovative ways to generate revenue for development, but taxing mobile money earnings of telcos in addition to what they already pay would only affect customers in the long run and make the country lose the financial inclusion battle," Samuel Adusei Baaye said.



Twitter Chief Jack Dorsey Announces Plans to Move to Africa

Twitter chief Jack Dorsey said this week that he plans to move to Africa for up to six months next year. The tech executive announced the planned move following a month-long trip visiting entrepreneurs on the continent.

“Sad to be leaving the continent … for now. Africa will define the future (especially the bitcoin one!),” Dorsey tweeted from Addis Ababa on Wednesday. “Not sure where yet, but I’ll be living here for 3-6 months mid 2020. Grateful I was able to experience a small part.”

Asked for comment, Twitter said in an email: “We’ve nothing to share beyond Jack’s initial tweet.”

Dorsey began traveling Africa on 8 November and visited Ethiopia, Ghana, Nigeria and South Africa, CNN reported.

In Ethiopia, he listened to startup pitches. In Nigeria, he had meetings with entrepreneurs and Ngozi Okonjo-Iweala, a Twitter board member who formerly worked as managing director of the World Bank.

Software developer Dara Oladosu, who created the Twitter bot Quoted Replies, which aggregates comments on tweets, received a job offer after meeting company executives, CNN said.

Dorsey also met bitcoin business owners in Ghana. Dorsey has expressed plans to integrate bitcoin use on Twitter and the payment app Square, according to CNN.

Africa’s tech industry is presently experiencing rapid growth. GSMA, a mobile services industry group, said there were 618 “active tech hubs” on the continent this year, up 40% from 2018. According to GSMA, Nigeria and South Africa have the most, with 85 and 80, respectively.

The Kenyan tech entrepreneur John Karanja launched BitHub, an incubator for cryptocurrencies, in 2015. Ethiopia’s government reportedly hopes that a tech-centric economy could create 3m jobs.

Dorsey’s African tour comes as social tech giants continue to face criticism over the spread of hate speech and misinformation online. Dorsey announced in October that Twitter would ban political advertising, putting pressure on Facebook to enact a similar policy.


Vodafone Cash Pre-Xmas Bazaar Excites Customers

Hundreds of Vodafone cash subscribers have yet again participated in one of the exciting pre-Xmas shopping experiences in Accra.

The one-day cashless bazaar held at the forecourt of Vodafone Ghana Head Office on Friday offered customers heavy discounts on a variety of items.

The periodic arts, fashion and food fair organized by Vodafone gives its Vodafone cash subscribers and the public an opportunity to shop from more than hundred carefully selected vendors, at massive discounts using Ghana’s most secured mobile money platform, Vodafone Cash.

Speaking at the Bazaar, Martison Obeng-Agyei, Head of Vodafone Cash, said, “The Vodafone Cash pre-Xmas is a continuation of our Vodafone Cash Bazaar in June. Customers requested for another edition because they were very happy with the discount they got on their previous purchases.

“They are very satisfied with our mobile money service transactions that allow them to purchase anything from Vodafone Cash wallets without charges.”

He said apart from the primary aim of the event to reward Vodafone Cash subscribers with massive discounts, they also used the platform to encourage customers and the public at large to send money via Vodafone Cash.

So far, Vodafone the only mobile money operator that allows subscribers to send money from their wallets to other Vodafone Cash wallets without charges.


Vodafone’s Obo-Nai is Best CEO in Telecoms Sector


Chief Executive Officer (CEO) of Vodafone Ghana, Patricia Obo-Nai, has been adjudged the best CEO in telecoms at the Industry CEO Awards, held over the weekend.

The awards event, which was based on 100 per cent public votes and delivered through SMS, is an annual event aimed at identifying and publicly recognising the most outstanding Chief Executives across a wide range of sectors.

Commenting on the award, Patricia said, “It is truly delightful to be acknowledged. I thank Ghanaians for recognising my commitment towards innovation and transformation.

“This award really reflects the tremendous work of our dedicated employees and senior management, who have been supportive and remarkable; as well as the great products, and quality network delivery over the period.”

The award is an affirmation of the impact Mrs Obo-Nai is already making, barely seven months in office.

Key amongst these is the simplification of Vodafone’s products and the introduction of the industry-first real family product - Vodafone One.

Additionally, she’s also displayed leadership in empowering 700 young girls with STEM education and digital coding; and network expansion.

Vodafone is currently offering its mobile money customers an unprecedented experience of sending money to other Vodafone Cash wallets without transfer charges.