17,000 MoMo businesses collapsed due to E-levy – MoMo agents association

The Mobile Money Agents Association of Ghana (MMAAG) has disclosed that the controversial Electronic Transaction Levy (E-Levy) has led to the collapse of approximately 17,000 mobile money businesses nationwide.

According to the association, this alarming figure was uncovered through an internal survey conducted in the months following the implementation of the levy.

The findings indicate that thousands of agents have been forced to shut down their operations due to the harsh financial impact of the tax policy.

In an interview, the General Secretary of the association, Mr. Evans Otumfuo, explained that the E-Levy significantly reduced agents’ working capital, making it increasingly difficult for them to sustain their businesses.

He noted that multiple deductions on electronic transactions—whether through bank transfers or peer-to-peer transactions among agents—put immense pressure on their finances and business operations.

“Many of our members simply couldn’t survive under the weight of these taxes. The constant deductions drained their capital, discouraged customers from transacting, and ultimately pushed thousands out of business,” Mr. Otumfuo lamented.

He emphasised that the E-Levy, rather than boosting government revenue, had a crippling effect on one of the most vibrant and inclusive sectors of the economy—mobile money services.

According to him, the levy created more harm than good by discouraging digital transactions and driving many small-scale entrepreneurs out of the market.

The association has since welcomed the government’s recent decision to scrap the E-Levy, describing it as a step in the right direction.

Mr. Otumfuo described the tax as “counterproductive,” arguing that it stifled innovation, reduced financial inclusion, and undermined the digital economy.

“We believe the removal of this levy will help restore confidence in the mobile money space and allow many agents to rebuild their businesses,” he added.

The association is also calling on the government to provide targeted support to former agents who lost their businesses to help them reintegrate into the economy and regain their livelihoods.

As conversations around tax reforms continue, the MoMo Agents Association is urging policymakers to prioritise policies that support small businesses rather than burden them.