Home / GENERAL NEWS / Embrace Opportunities That Come With Digitalization – Dr. Bawumia

Embrace Opportunities That Come With Digitalization – Dr. Bawumia

Spread the love

Vice President Dr Mahamudu Bawumia has urged African countries and all banks on the continent to embrace digital technology in order to take advantage from the enormous benefits therein.

Speaking during the 25th National Banking conference on the theme “the digital economy of Ghana the strategic role of the banking industry” on Thursday  November 18, he said “Countries under the free trade area in Africa must embrace all the opportunities brought by digitalization. This will alleviate the poverty levels within the region.

“Banks will benefit from a larger market  share. Cross border trading financing arrangement under the AfCFTA can increase the profitability of the banks, expand their asset base.”

For her part, President of the Ghana Bankers Association, Madam Patricia Sappor revealed that the value of mobile money transactions for the first four months of this year totaled ¢301.1billion whiles that of cheque transaction over the same period amounted to ¢68.3bn.

See also  Payment Of Public Sector Salaries Could Be Affected In The Long Term If We Don’t Increase Revenue – Deputy Finance Minister

 

She indicated that if this trend persists, the total value of mobile money transactions will surpass cheque transactions by far more than 389bn  recorded for the whole year of 2020.

She said “The value of mobile money transactions for the first four months of this year totaled 301.1billion whiles that of cheque transaction over the same period amounted to 68.3bn.

“If the trend continues which I believe will, the total value of mobile money transactions will surpass cheque transactions by far more than 389bn  recorded for the whole year of 2020.

Her comments come at a time the government has inr6duced tax on mobile money transaction in the bduegt statement for he 2022 fiscal year.

The Finance Minister Ken Ofori-Atta announced a new levy to be charged by government in 2022 on all electronic transactions to widen the tax net and rope in the informal sector.

 

“It is becoming clear there exists enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the ‘informal economy’,” Mr Ofori-Atta observed on Wednesday, November 17 as he presented the 2022 budget statement in Parliament.

See also  Two Persons Feared Dead In A Road Accident At Achimota

“After considerable deliberations, government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the ‘Electronic Transaction Levy or E-Levy’.”

He explained that the new E-levy will be a 1.75 per cent charge on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances to be borne by the sender except inward remittances, which will be borne by the recipient.

This will, however, not affect transactions that add up to GH¢100 pr less per day.

 

“A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.”

This new levy is scheduled to start Saturday, January 1, 2022.

See also  Policeman Slaps Journalist For Asking Him Why He’s Not Wearing Face Mask

In 2020, total value of transactions was estimated to be over GH¢500 million with mobile money subscribers and users growing by 16 percent in 2019.

According to a Bank of Ghana report, Ghana saw an increase of over 120 percent in the value of digital transactions between February 2020 and February 2021 compared to 44 percent for the period February 2019 to February 2020 due to the convenience they offer.

This was definitely heightened by the advent of Covid-19 especially during the lockdown.

 

 

 

 

 

 

 

Source: 3news.com

 

 

 

 

 

 

 

 

 

 

 

 

Disclaimer: MyGhanaMedia is not responsible for this report and its content.There are four types of content published on MyGhanaMedia daily: curated content; syndicated content; user-generated content; and original content.

 

 


Send your news stories to [email protected] and Chat with us via WhatsApp on +233 200818719

 

 

About Adwenpa-Hene

I'm Adwenpa-Hene |Blogger & Broadcaster Journalist. I am the CEO and manager of this noble website. I publish on Entertainment, Sports, Politics, Lifestyle, and Technology. You can also follow Us on : YouTube Channel - My Ghana Media TV, Facebook - MyghanaMedia TV , Twitter - @MyGhanamedia2 & Instagram - My Ghana Media TV. Email Address: [email protected] Contact Us: 0200818719

Check Also

NDC’s Internal Election: Aspiring Chairman Paralyzes A Day Before Vetting

Spread the love An aspiring Constituency Chairman for the National Democratic Congress in the Abura …

Leave a Reply

Your email address will not be published.