The central bank directed Mobile Money Fintech Limited (MMFL), operators of MTN Mobile Money (MoMo), to halt implementation of the charge pending further consultations across the financial services ecosystem.

The proposed fee would have applied to transfers from mobile money wallets to bank accounts and was expected to attract a cap of GH¢5 (about ₦525) per transaction.

In a statement issued by its Communications Department, the Bank of Ghana said the decision reflects its commitment to ensuring that any changes to charges within the digital financial services ecosystem are introduced fairly while protecting consumers and supporting their financial wellbeing.

The announcement follows widespread public backlash after MTN Ghana notified customers about the impending charge earlier this week.

Many users expressed concerns over the additional cost burden amid increasing reliance on mobile money services for daily transactions, savings, and business payments.

Industry stakeholders have described the suspension as a significant move toward consultative digital finance regulation in Africa.

The Virtual Asset Service Providers Association (VASPA) also commended the Bank of Ghana for adopting what it described as a “progressive and consultation-driven” regulatory approach.

According to reports, the central bank will continue engagements with industry players before making a final decision on the proposed fee structure.

Mobile money remains one of Ghana’s most important financial inclusion tools, serving millions of users across the country and supporting the broader digital economy agenda. Analysts believe the outcome of the consultations could shape future fintech and digital payments regulation across Africa.

The Bank of Ghana has not indicated when consultations will conclude or whether the proposed fee will eventually be revised, reduced, or completely withdrawn.

The Ghana’s apex bank announced the suspension of the two Nigerian banks Tuesday in a statement it issued.

It said in the statement: “Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective 18th March 2024, for a period of one (1) month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723).

“This is as a result of various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations which have come to the attention of Bank of Ghana.

“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to the foreign exchange market regulations.

“By this statement, we caution foreign exchange market players to adhere strictly to the applicable forex market regulations and guidelines.” (Source: Eagleonline)

Ghana has been restructuring its debts as it tries to emerge from its worst economic crisis in a generation that saw inflation rocket beyond 50% in annual terms in late 2022.

But price pressures eased considerably over the second half of 2023, falling to 23.2% year-on-year in December, opens new tab from 26.4% in November and 35.2% in October.

Ernest Addison, Bank of Ghana’s governor told a news conference that bank officials now forecast inflation would drop to 13%-17% by the end of the year and to 6%-10% by 2025.

The central bank targets inflation of 8% with a margin of error of 2 percentage points either side.

In a document obtained by TechEconomy on Monday, the banking regulator in Ghana instructed the financial institutions to provide the details of services provided by Flutterwave to their institutions.

Ismail Adam, the Head of Bank Supervision said: “The Bank of Ghana is conducting a review on Flutterwave Technology Solutions Limited as part of its continuous surveillance of the financial system.”

It is also asking for the fintech company’s operational accounts and other financial exposure details. All of this information was meant to be submitted to BoG by July 20, 2022.

Flutterwave is listed on Ghana’s Registrar General’s Department—a department of the Ministry of Justice and Attorney General. However, it has not been listed by the BoG as an approved fintech and innovation institution, according to reports.

TechEconomy had reported that Kenyan Asset Recovery Agency (ARA) secured a court order to freeze bank accounts linked to Flutterwave citing “international money laundering”. However, the fintech denied the allegations.

Since its launch, Flutterwave has been on a mission to create endless possibilities for customers and businesses in Africa and the emerging markets. To date, the company has processed over 200 million transactions worth over $16 billion across 34 countries in Africa including Nigeria, Uganda, Kenya, and South Africa.