The Ghana FinTech and Payments Association (GFPA), the leading voice of Ghana’s digital financial ecosystem, proudly extends its heartfelt congratulations to H.E. John Dramani Mahama on his election as President of the Republic of Ghana under the National Democratic Congress (NDC).
This historic victory underscores the confidence Ghanaians have placed in his vision for a prosperous and inclusive future.
The Association is optimistic that under the leadership of President-elect Mahama, Ghana’s burgeoning fintech industry will witness significant growth, especially given the NDC’s campaign focus on leveraging technology and innovation to foster economic transformation.
Abolishing the E-Levy: A Turning Point for the Digital Economy
During the NDC’s campaign, the promise to abolish the contentious e-levy within the first 120 days of the new administration resonated strongly with fintech players and consumers alike. Introduced in 2022, the e-levy has been widely criticised for stifling innovation and burdening consumers.
Mr. Martin Awagah, President of the Association, expressed optimism about the impact of this policy shift: “The e-levy has had far-reaching implications for the digital financial ecosystem. Initially advertised as a 1% tax, its actual implementation often exceeded this rate, deterring transactions and burdening businesses. Its removal will bring relief to millions and reignite momentum in the fintech sector.”
Data from the fintech industry underscores the toll the levy has taken, with transaction volumes dropping significantly and many fintech firms struggling to meet revenue targets. By eliminating this tax, the Mahama administration can help restore consumer confidence and create an environment conducive to investment and growth.
The $50 Million FinTech Growth Fund: Empowering Innovation
Another promising policy announced by the NDC is the creation of a $50 million FinTech Growth Fund to support start-ups and emerging businesses. The fund aims to address one of the fintech industry’s biggest challenges, limited access to capital.
“For years, access to funding has been a barrier to scaling innovative fintech solutions in Ghana,” noted Mr. Awagah. “This fund could empower local companies to build homegrown solutions, foster financial inclusion, and align with the global movement to democratise access to financial services.”
By providing capital to innovators, this initiative promises to unlock the sector’s full potential, enabling local companies to compete on a global scale while addressing Ghana’s financial inclusion agenda.
Collaborating for a Resilient Digital Economy
The Association reaffirmed its commitment to collaborating with the Mahama administration to ensure the successful implementation of policies that promote the growth and sustainability of the fintech sector.
The Association represents a diverse community of companies that have driven Ghana’s digital financial revolution and are poised to do more with the right support, which has been lacking.
“We are ready to work hand in hand with the new government to foster innovation, attract investments, and build a resilient and inclusive digital economy,” stated Mr. Awagah. “With the right policies, regulations, and partnerships, Ghana can set a benchmark for fintech innovation not just in Africa but globally.”
A Call to Action for Inclusive Growth
As the President-elect prepares to take office on January 7, 2025, the Association encourages the administration to prioritise the policies necessary to create an enabling environment for fintech growth.
This includes fostering entrepreneurship, addressing the challenges of overtaxation, and ensuring equitable access to funding for start-ups.
“The fintech sector is a critical enabler of financial inclusion and economic development,” Mr. Awagah added. “Together, we can create a digital economy that works for all Ghanaians and cements Ghana’s position as Africa’s fintech hub.”
The Association looks forward to a collaborative and transformative relationship with the Mahama administration, championing a shared vision of technological innovation and inclusive growth.
