Ghana’s ascendancy to the pinnacle of mobile money regulation is a testament to the country’s forward-thinking policies and commitment to fostering a thriving digital financial ecosystem. The 2024 Mobile Money Regulatory Index (MMRI), compiled by the GSMA, a global organization representing the interests of mobile operators worldwide, placed Ghana at the forefront of 90 countries evaluated, including established and emerging economies like Brazil, Mexico, Rwanda, and Qatar. Ghana achieved a remarkable overall score of 95.06, demonstrating its comprehensive and enabling regulatory framework for mobile money services. This accomplishment underscores the significance of a well-structured regulatory environment in facilitating the growth and adoption of digital financial services, particularly in developing economies.
Ghana’s exceptional performance across several key dimensions of the MMRI further highlights its commitment to creating a robust and inclusive mobile money ecosystem. The country achieved a perfect score of 100 in three crucial areas: “Transparency and Disclosure Requirements,” “Authorisation,” and “Consumer Protection.” These perfect scores reflect Ghana’s dedication to ensuring transparency and accountability within the mobile money sector, streamlining the authorization process for new entrants, and prioritizing the protection of consumer rights. These pillars are essential for building trust and confidence in mobile money services, thereby encouraging wider adoption and usage.
However, despite its stellar performance in several areas, Ghana’s score was impacted by its performance in the “Policy Enablement” dimension, where it received 83.75 points. This lower score was primarily attributed to a zero score under the “Taxation” indicator, reflecting the negative impact of the Electronic Transfer Levy (E-Levy) on the mobile money landscape. The E-Levy, a tax on electronic transactions including mobile money transfers, introduced by the Ghanaian government, was deemed a discriminatory tax targeting mobile money services, thus hindering the sector’s growth potential. The MMRI analysis suggests that removing the E-Levy and other discriminatory taxes could boost Ghana’s overall score and further solidify its position as a global leader in mobile money regulation.
The MMRI provides a nuanced assessment of mobile money regulatory frameworks across the globe. Unlike binary evaluations, the index utilizes a multi-faceted approach, considering various factors that contribute to a conducive regulatory environment. The index uses six broad dimensions encompassing 40 specific indicators, each scored based on qualitative and quantitative metrics. This comprehensive methodology ensures a thorough evaluation of the regulatory landscape and provides valuable insights for policymakers seeking to optimize their regulatory frameworks for mobile money. The index has evolved since its inception in 2018, with the number of indicators increasing to reflect the evolving complexities of the mobile money landscape.
The E-Levy’s impact on Ghana’s MMRI score highlights the delicate balance between generating government revenue and fostering innovation in the digital financial sector. While governments may seek to leverage the growing popularity of mobile money for revenue generation, discriminatory taxes can stifle innovation and limit the potential of mobile money to drive financial inclusion. The MMRI analysis underscores the importance of carefully considering the potential consequences of taxation policies on the mobile money ecosystem, and designing tax regimes that support rather than hinder its growth.
Ghana’s success story in mobile money regulation provides valuable lessons for other countries seeking to leverage the transformative power of digital financial services. By prioritizing transparency, consumer protection, and fostering a level playing field through non-discriminatory taxation, countries can create an enabling environment for mobile money to flourish. The MMRI serves as a crucial tool for policymakers to benchmark their regulatory frameworks against global best practices and identify areas for improvement. As the digital financial landscape continues to evolve, the MMRI will continue to play a critical role in shaping regulatory frameworks and promoting the growth of mobile money worldwide.
