Report Reveals Digital Payments In Ghana Could Save Over GHS 1 Billion Within Next Four Years

A UN report launched in Ghana by the Ministry of Finance and UN-based Better Than Cash Alliance has indicated that, creating an economy where everyone can pay and get paid digitally, instead of cash could save the country over GHS 1 Billion.

According to the report, almost 100 percent of government payments to people and payments within the government are 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.

Speaking at the launch in Accra, the deputy Finance Minister, Charles Adu Boahen who delivered a speech on behalf of the minister, Mr. Ken Ofori-Atta said “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,”

Adding that, “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 Managing Director of the Better Than Cash Alliance, Dr. Ruth Goodwin-Groen also in her speech lauded government for the use of digital payment.

“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,” she said

According to her,“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.”


Read below some key insights on the status of digital payments in Ghana and tangible recommendations on how to successfully move forward.

•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.