‘It’s too early to assess impact of E-Levy’ – MTN Group CEO
Ralph Mupita, the CEO of MTN Group, remains hopeful about Ghana’s digital environment despite the installation of the controversial E-levy.
Mr. Mupita accepted the government’s budgetary restrictions but advocated for a more balanced approach to the issue.
Regarding the evaluation of the impact of the e-levy, he also emphasized that it was still “early days.”
“There is a delicate balance that must be struck about the investment in the digital environment,” he stated.
Mr. Mupita stated, with a focus on the long term, that “the reason digital payments are on the rise is because we are solving the problem of financial inclusion.”
He has remarked that conventional banking systems lack the capacity to promote financial inclusion.
Consequently, he anticipates a shift in the economy towards more services, with the digital ecosystem playing a larger role.
Mr. Mupita stated that MTN will continue to invest in expanding the digital ecosystem to facilitate eCommerce.
He stated that e-commerce is at a stage where it will “sustain small and medium-sized businesses that require specific solutions to be successful.”
The implementation of the controversial tax began on May 1, 2022, following its initial announcement in the 2022 budget.
The tax was decreased from 1.75 percent to 1.5 percent in response to protests from a variety of interested parties.
The reduction was deemed insufficient by the groups that demanded the elimination of the tax.
The government had anticipated to earn approximately GH7 billion from the 1.5 percent charge on mobile money and other electronic transactions, but the figure was recently lowered downwards to approximately GH4 billion.