Foreign MoMo Operators Must Obtain 30% Local Equity To Secure License – BoG

The Bank of Ghana (BoG) says under the new Payment and Settlement law, any foreign mobile money operator seeking a license to operate in the country must have a 30 per cent local equity.

Speaking at Ghana's most respected CEOs breakfast series, the Head of Digital Payment and Settlement systems at the BoG, Dr Settor Amedeku said as part of the new law, the central bank will be launching a guideline for operators in the mobile money space soon.

According to the latest data from the Bank of Ghana, financial inclusion has increased to about 58 per cent with more than 31 million mobile money users transacting business on electronic platforms.

As part of the process to move Ghana to a cashless economy, the Bank of Ghana is targeting about 75 per cent financial inclusion by 2023.

Speaking on a panel on e-payment and financial Inclusion, Dr Amedeku revealed that the Bank of Ghana will launch a new guideline for mobile money operators soon which will require 30 per cent of local participation before getting a license to Operate as a mobile money firm.

He said, “No mobile money operator in Ghana is licensed as we speak, that is why the central bank has been saying that we're working on the regulation now that the Payment and Settlement Act has been passed, all of them are going through the processes to be licensed and you must be aware that every mobile money operator which is a foreign firm have to get a local participation of 30 per cent.”

Dr Amedeku, “We think 30 per cent have to go to Ghanaians so if you take any mobile money operator that wants a license you need to bring in a Ghanaian investor who has 30 per cent equity. It's a way of encouraging our people to take part in the payment system.”

Chief Executive of Ghana Interbank Payment and Settlement system, GhiPSS Archie Hesse is making a case for the establishment of a Payment Council for all digital payment institutions and fintechs in the country.

Under the law, banks with mobile money departments will also be required to create a subsidiary and secure a license to be able to operate as a mobile money firm.