Recognising the benefit of financial inclusion to economic growth, Ghana is digitalising its economy to enhance security for business transactions. In recent years legislation has been passed that aims to improve the investment climate, align the country with international norms and attract increased foreign investment. As of September 2023 mobile money transactions in Ghana reached GHS1.9trn ($172.5bn).
New Laws
In line with these efforts, the Payment Systems and Services Act 2019 established the Bank of Ghana as the supervisory and regulatory authority in all matters relating to payment, clearing and settlement systems, mandating it to promote safety and financial inclusion. It also specifies technology requirements, security protocols, and controls and mandates adherence to universal principles on consumer protection.
The Electronic Transactions Act 2008 provides for and facilitates electronic communications and related transactions in the public interest while removing and preventing barriers to the same. This law promotes legal certainty and confidence in electronic communications, including investor confidence, and strives to develop a safe, secure and effective environment for the consumer, business and government to conduct and use electronic transactions while ensuring compliance with accepted international standards.
The e-levy, instituted by the Electronic Transfer Levy Act 2022, imposes a 1.5% levy on all electronic money transfers, excluding those exempted by law. The generated revenue aims to support entrepreneurship, digital and cybersecurity, among other initiatives.
The Anti-Money-Laundering Act 2020 underscores Ghana’s commitment to combat money-laundering and financial crimes. Aligned with international standards, it broadens the scope of unlawful activities, including those aiding illegal acts. The legislation imposes strict sanctions for money-laundering offences and introduces a virtual asset service provider, emphasising accountability for cryptocurrencies and digital assets.
The Cybersecurity Act 2020 aims to safeguard against cybercrime and promote cybersecurity in Ghana to ensure a secure digital ecosystem. The Cybersecurity Authority was established in October 2021 to prevent, manage and respond to cybersecurity threats and incidents, collaborating with international agencies where necessary. The act also introduced a cybersecurity incident reporting system and a dedicated source of funding for the Cybersecurity Authority.
Fuelling Progress
These improvements to the legal framework have contributed to the innovative developments seen in Ghana’s digital space in recent years, such as the National Identification card, E-Cedi and the Pan African Payment and Settlement System (PAPPS).As a valid verification document issued by the National Identification Authority to Ghanaians and permanently resident foreign nationals living everywhere, the Ghana Card is part of Ghana’s plan to formalise the economy, contributing to national security by acting as proof of identity that helps reduce fraud and identity theft while increasing the security of payments.
A pilot phase of a central bank digital currency for Ghana, E-Cedi, has been completed with selected consumers at Sefwi Asafo in the Western North Region of Ghana, using the currency to buy goods and services.
Launched in January 2022, the Pan African Payment and Settlement System (PAPPS) is cross-border infrastructure that facilitates instant payments in local currencies between African markets. PAPPS mitigates risks in cross-border trade by offering a secure channel for payment and settlement, enhancing trade activities within the African Continental Free Trade Area.
These legislative and technological developments reflect the country’s focus on protecting digital financial transactions and online activities, providing a level of assurance to investors’ online commercial activities.
Read More from OBG
