E-Levy to cause temporal reduction in MoMo transactions – Financial Analyst

Financial Analyst, Harrison Ahorgba, is confident the passage of the E-Levy will not have an adverse effect on electronic transactions, especially mobile money transactions.

According to him, the Ghanaian people have become used to what is now popularly called momo transactions and may rebel against the e-levy by refusing to use the platform temporarily, but will eventually come around, seeing a surge in transactions on the platform once more.

“The platform has come to stay and maybe people will leave it, but their actions and inactions will drive a paradigm shift in the area. We don’t anticipate people going off the platform. When I say people I mean individuals, agents and the telcos. I feel there will be a reduction in the usage of the platform but with time when much education goes on and accountability is assured and evident, people will come back to embrace it or otherwise,” he told Samuel Eshun on the Happy Morning Show.

From experience in the financial sector, Mr. Ahorgba assured the passage of the e-levy will definitely cause a decline in momo transactions “but talk of a total stoppage, we don’t see that coming now.”

The controversial E-Levy has been passed by a one-sided Parliament after minority members boycotted proceedings by staging a walkout.

The minority walked out when the bill was at the consideration stage.

The minority leader Haruna Iddrisu who spoke before his side moved out maintained their opposition to the bill.

The e-Levy seeks to impose a 1.50% levy on transactions, including Mobile money transfers done between accounts on the same Electronic Money Issuers (EMI), Mobile money transfers from accounts on one EMI to a recipient on another EMI, Transfers from bank accounts to mobile money accounts (either directly, GIP debit, bank cards or another scheme), Transfers from mobile money accounts to bank accounts (either directly, GIP debit, bank cards or another scheme) and Bank transfers originating from a bank account belonging to an individual.

The bill has sharply divided the two sides of the House and has even degenerated into fisticuffs at a point.