E-Levy collapsed thousands of MoMo businesses

The Mobile Money (MoMo) Agents Association of Ghana has revealed that about 17,000 mobile money businesses across the country collapsed after the implementation of the electronic transaction levy (E-Levy) under the Akufo-Addo administration.

An internal survey conducted by the association disclosed that many agents left their businesses due to multiple levy deductions on transactions, whether through banks or between fellow agents.

The general secretary of the association, Evans Otumfuo, said the heavy taxation significantly reduced the working capital of many mobile money agents, forcing them out of business.

The association has applauded the new government’s decision to scrap the levy, describing it as “counterproductive” to their businesses.

Speaking in an interview, Evans Otumfuo stated, “E-levy has been counterproductive to us; it has had a bad impact on our businesses. In a survey that we have conducted, we found that over 17,000 of our members closed down their businesses due to the E-levy.

“Momo agents at a point were subjected to the various forms of levy deductions. We lost our working capital; it hasn’t been in the interest of our business so far. We received it as a piece of good news, the cancellation of the E-levy; we really look forward to its implementation.”