The Mobile Money (MoMo) Agents Association of Ghana has revealed that approximately 17,000 mobile money businesses across the country have shut down following the implementation of the electronic transaction levy (E-Levy) under President Akufo-Addo’s administration.

According to a survey conducted by the association, many MoMo agents abandoned their businesses due to multiple deductions on transactions, whether through banks or between fellow agents. The levy significantly eroded the working capital of these agents, ultimately forcing many out of business.

Evans Otumfuo, General Secretary of the association, described the tax as “counterproductive,” stating that it severely impacted operations for thousands of small businesses. He noted that the closure of these 17,000 businesses was a direct consequence of the E-Levy’s heavy taxation on mobile money transactions.

“The E-Levy has had a detrimental effect on our businesses,” Otumfuo said in an interview with Joy News. “Through our internal survey, we discovered that over 17,000 MoMo agents closed their businesses as a result of this levy. The continuous levy deductions drained our working capital and made it nearly impossible to continue operating profitably.”

The association has welcomed the new government’s decision to scrap the E-Levy, describing it as a positive move for the sector. “We are relieved by the government’s decision to cancel the E-Levy, and we hope to see its implementation soon,” Otumfuo added.

Source:TheDotNews