Ghana has the baseline infrastructures – RTGS, ATMs, and POS switches coupled with a massive mobile phone penetration for achieving a cash-lite economy – however, the country is still very much a cash dependent society.
A cash-lite economy has been a long awaited dream for Ghana, but experts and stakeholders believe that until a formal leadership and institutional collaboration is established, adding to effective infrastructures than what we have now, the dream will always remain a dream.
The Ghana Payment System Act, 2003 does empower Bank of Ghana to establish, operate and promote any course that thrive the payment system in the country.
Stakeholders and experts have however called on this pivotal body to establish a payment council that will govern the Ghanaian payment system to ensure a cash-lite society in medium term.
“An overwhelming 100% of respondents (stakeholders) strongly agreed” that bank of Ghana should develop and anchor a payment governance body with multiple/wide stakeholder participation according to Standard Chartered Bank’s Strategic Payment Roadmap report.
Currently, the Ghanaian payment governance is driven primarily by Bank of Ghana together with Ghana Interbank Payment Settlement System (GhIPPS) being the delivery arm.
Although, under this umbrella, the country has chalked quite some success in electronic payments by providing some infrastructures, products and services like e-zwich, gh-link, cheque codeline clearing etc…. which are adequately enough to power a cash-lite society, physical cash transaction is not uncommon at market places, shopping malls, lorry stations, restaurants and other commercial places in the country.
Adams, assistant manager at KFC, Osu branch where a POS terminal is available doesn’t even remember the last time he made transactions with the device. He says customers prefer cash payment to the POS device due to its persistent poor network.
Unlike Ghana, some peer countries like South Africa, Tanzania, and Nigeria are experiencing some growth in their e-payments system due to structured governance.
In 1995, South Africa launched its first National Payment System Framework and Strategy Document (1995-2005), referred to as the Blue Book. This brought together both private and public bodies in the country.
Just a year after launching, a massive growth in electronic fund transfer point-of-sales (EFTPOS) was recorded, where an excess of 90% of credit-card payments were converted into EFTPOS terminals.
Moreover, the volume and value of electronic funds transfer (ETF) transaction processed through BANKSERV shot up to 15% and 44% respectively.
Achieving such a milestone and objectives by the payment system document was under the direction of a council called PASA (Payment Association of South Africa).
This achievement however led to re-evaluation and launching of its VISION 2010 and VISION 2015 strategy documents which are still under the same directorate.
The strategic payment roadmap report however recommended the need for a payment council in Ghana to “ensure diverse stakeholder involvement on decisions and consensus on the direction and details of the payment industry.”
Mr. Samuel Nuer, Vice President (Investment Banking) of Cornerstone Capital Advisors shares the view that aside leadership, there is the need for a collaborative engagement between the government, private sector and other agencies in the country to facilitate the rolling out of a cash-lite system in Ghana.
He sees the need to integrate telecommunication companies with banks, service providers, and government institutions to ensure inter-operability between bank accounts, mobile wallets and other services to affect payment electronically.
Samuel advised, “Government should create that enabling environment for the private sector to find cheap financial resources to invest in effective infrastructure across the country.”
Infrastructure that guarantees cost-effective, secure and efficient payment, reliable and fast services for user groups.
The Cash-lite dream has been the core objective of many countries in the world due to its socio-economic benefits.
The dream for Ghana is not too far to reach if appropriate measures and recommendations made by stakeholders and experts are given the necessary attention.