The Institute of Statistical Social and Economic Research (ISSER) is urging Mobile Money (MoMo) agents across Ghana to rethink their decision to limit cash withdrawals to a maximum of GH¢1,000 per transaction, as the move will be detrimental to gains made in financial inclusion and the transition to a cash-lite economy.
ISSER is, however, calling on MoMo stakeholders to engage in dialogue to find a fair and sustainable compensation model for MoMo agents without jeopardizing financial inclusion.
The call comes on the back of a recent decision by Mobile Money agents in the country to cap withdrawals to a maximum of GH¢1,000 per transaction, effective December 1, 2023, in their quest to secure fair compensation for their services.
However, in a statement issued on Wednesday, December 6, ISSER said it acknowledges the concern of MoMo agents for an improvement in compensation.
“However, we wish to caution that the current unilateral action can be detrimental to gains made in financial inclusion and the transition to a cash-lite economy. In the medium to long term, the sharp increase in the cost of withdrawal will drive customers away and inadvertently reduce the profitability of agents. We call on all stakeholders to resort to evidence-based dialogue for a fair compensation model that will not jeopardize gains made in financial inclusion,” it explained.
It also noted that the action could derail gains made in the digitization of MSMEs as the proposed rate will have minimal impact on small-value transactions.
“However, it stands to adversely impact micro, small and medium, enterprises who rely on MoMo for their financial transactions, especially traders and farmers within the agricultural value chains concentrated in rural areas.”
Read the full statement by ISSER here: