Ghana’s drive towards financial inclusion in Jeopardy – Assessment of Dr. Bawumia’s digitalization Vs Ken Ofori Atta’s levy

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Economies and financial institutions all over the world have put in effort to make life easier in accessing appropriate, affordable and timely financial products and services.

According to Investopedia, financial inclusion refers to efforts to make financial products and services accessible and affordable to all individuals and businesses, regardless of their personal net worth or company size.

Financial inclusion strives to remove the barriers that exclude people from participating in the financial sector and using these services to improve their livelihood. To the nonprofessional, financial inclusion means a drive towards a cashless society.

In Ghana, matters have not been different as successive governments, political leaders, businesses, telecommunication networks and financial institutions are pushing for the cashless society agenda.

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The Ministry of finance through World Bank’s Consultative Group to Assist the Poor, estimate only 58% of Ghana’s population had access to formal financial services in 2015. Through strategic plans, it was projected Ghana’s financial inclusion to increase from 58% to about 85% of the countries adult population by 2023.

In recent times, the vice president of the republic of Ghana, Dr. Mahumudu Bawumia has proposed and implemented strategies to archiving digitalization and a cashless society (E-Cedi). Dr. Mahumudu Bawumia advocated to African leaders to promote digitalization and electronic currency in order to improve international trade.

It is worth knowing that achieving a cashless society decreases money laundering and robbery attacks while promoting the convince of doing business. The big question now is, will Ghana still achieve the expected 85% financial inclusion agenda as the Finance Minister Ken Ofori-Atta is proposing an Electronic-levy of 1.75% on all electronic transactions above 100 cedis?

Will this new Electronic Levy help in achieving financial inclusion in Ghana or it will rather wipe away the successful achieved so far.?

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SOURCE : Coverghana.com.gh / William Tugbah

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