Vision1 FM                       Light FM                         Light TV

Ghana could save over GHC 1 billion within next four years - New UN report

At an event bringing together key government and business players, the Ghana’s Ministry of Finance and the UN-based Better Than Cash Alliance released a report documenting the country’s progress in creating an economy where everyone can pay and get paid digitally, instead of cash.

 

 

The results show the country has made significant gains, including almost 100 percent of government payments to people and payments within the government now processed digitally. The findings also reveal there are opportunities for providing more choice to customers.

 

This move is already translating into direct benefits to people, particularly women, support for small businesses and cost savings for the government. The data also predicts that if the government continues to make progress, savings could reach over GHS 250 million each year, which may result in more than GHS 1 billion by 2020.

 

“The future really is digitization and how we can leverage on it for the benefit of our citizens. This is why digitizing initiatives such as our flagship conditional cash transfer program Livelihood Empowerment Against Poverty (LEAP) is a key milestone,” said Hon. Ken Ofori-Atta, Minister for Finance of the Republic of Ghana.

 

“We recognize that there is still more work to do to transition most of the country away from cash. Yet with great potential for cost savings and opportunities to increase transparency and accountability, we cannot afford not to,” the Minister added.

 

The report provides key insights on the status of digital payments in Ghana and tangible recommendations on how to successfully move forward. In particular, three priorities emerged to help the government and citizens achieve the most benefits:

 

• Investing in infrastructure for digital public utility payments: 80 percent of the population uses public essential services such as water and electricity, but only 20 percent of the population has access to digital technology such as smart meters. By investing in smart distribution infrastructure that digitize end-to-end delivery and payment, it will increase efficiencies and ease of use for citizens – ultimately increasing adoption.

 

• Digitizing payment of government fees and fines: With 97 percent of fees and fines currently paid in cash, the Ghanaian government could gain enormous cost savings if they commit to using digital payments exclusively and mandate all government agencies to use a central payment system.

 

• Encouraging digital payments in the Fast Moving Consumer Goods (FMCGs) value chain to support digitization of small retailers and customers: For FMCGs companies operating in Ghana, 96 percent of distributor payments and 59 percent of vendor and employee payments in volume are made in checks. However, 99.9 percent of individual payments for consumption goods by volume are still completed in cash, as individuals continue to purchase essential consumer goods, including food, in the informal economy with small retailers. This indicates the tremendous potential impact any shift to digital payments in this value chain can have on the overall ecosystem. By transitioning away from cash, small business owners can avoid storing large amounts of cash, drive customers’ adoption and boost access to formal saving and loan products which can expand their economic potential. This will especially improve the lives of women, who represent many of the small retailers in the FMCGs sector.

 

“We want to congratulate the Government of Ghana for its leadership in building the foundation for an economy less dependent on cash. Under this leadership, the country is making considerable strides to improve transparency, accelerate opportunities for economic growth and empower women by bringing them into the formal financial system,” said Dr. Ruth Goodwin-Groen, Managing Director of the Better Than Cash Alliance. “Ghana is at a tipping point in its shift to digital payments. We at the Better Than Cash Alliance look forward to continued work with our colleagues across the digital ecosystem in government, companies and international organizations to continue this great progress.”

 

 

 

 

 

 

 

 

 

 

 

 

Source: Global Media Alliance

More Lifestyle..

Online transactions increase by 374% Online transactions increase by 374% 2017-10-19 - The Registrar General’s Department (RGD) says it has successfully...
Hearts of Oak official arrested over match-fixing scandal Hearts of Oak official arrested over match-fixing scandal 2017-10-19 - The protocol officer of Accra Hearts of Oak has resigned after...
Mpuasuman United's 13-goal striker Christian Amankwaa pushing for Asante Kotoko move Mpuasuman United's 13-goal striker Christian Amankwaa pushing for Asante Kotoko move 2017-10-18 - Mpuasuman United striker Christian Amankwaa is pitching to play...
BoG sanitizes microfinance sector by ‘naming and shaming’ BoG sanitizes microfinance sector by ‘naming and shaming’ 2017-10-18 - The Bank of Ghana’s decision to name and caution the public...
U-17 World Cup: Ghana can go all the way – Eric Ayiah U-17 World Cup: Ghana can go all the way – Eric Ayiah 2017-10-18 - In giving an exclusive interview to FIFA.com, Ghana captain Eric...