In a groundbreaking revelation, Ghana has secured its position as a mobile money powerhouse in West Africa, ranking second only to Côte d’Ivoire, according to the latest “Africa Risk-Reward Index” by Oxford Economics.
The report highlights the remarkable surge in the value of mobile money transactions, exceeding 100% of Gross Domestic Product (GDP) in Ghana, Côte d’Ivoire, and Senegal.
The report emphasizes that West African nations, particularly Senegal, Ghana, and Côte d’Ivoire, have spearheaded the adoption of mobile money services in Africa.
The surge in mobile money usage signals a significant leapfrogging of traditional financial infrastructure in these countries.
Notably, South Africa lags behind, with mobile money transactions representing less than 1% of its GDP.
Ghana’s mobile money dominance is evident in the statistics: the country ranks second in mobile money accounts per 1,000 adults, closely following Côte d’Ivoire.
Additionally, Ghana secures the second spot for mobile money agents per 1,000, with Senegal leading in this category.
Despite this success, Ghana faces internal resistance to a recently implemented electronic levy on mobile money transactions.
The controversial levy has sparked opposition from segments of the population, despite the country’s stellar performance in mobile money services.
The Oxford Economics report suggests a reverse correlation between a nation’s financial sector development level and the adoption of mobile money services.
This trend underscores a growing demand and preference for mobile-based alternatives, bypassing traditional financial infrastructure.
As of August 2023, data from The Bank of Ghana reveals impressive figures for Ghana’s mobile money landscape.
Active mobile money accounts reached 21.6 million, while active agents stood at 556,000.
The country recorded a staggering 1.190 trillion cedis in total mobile money transactions during the first eight months of 2023.
The 2023 Oxford Economics Africa’s Report not only sheds light on the success of mobile money in individual African nations but also delves into the advantages and drawbacks of polarization, African-led security interventions, and the diverse strategies employed by African countries to finance their future development.
Ghana’s ascent in the mobile money arena stands as a testament to the nation’s dynamic approach to financial innovation and technology.
