More than 70% of the population has access to financial services- Prez. Akufo-Addo

President Akufo-Addo has revealed that currently more than 70 percent of Ghana’s population have access to financial services.

Additionally, he said this is either through a bank account or a mobile money account. Also, this is in line with the National Financial Inclusion and Development Strategy (2018-2023). The government expects an increase in access to finance to hit 85 percent by 2023.

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“Mr. Speaker, for the first time in Ghana, more than seventy percent (70%) of the population has access to financial services.

“Seventy percent (70%) of the adult population did not have access to a bank account… Financial transactions were dominated by cash.

“It was in this context that we set about the process of formalizing our informal economy through digitisation.

“We have been able to do so through the implementation of mobile money interoperability (between bank accounts and mobile wallets)…with Ghana as the first and only country in Africa to have done so.

“It is, therefore, not surprising that Ghana is the fastest growing mobile money market in Africa”. 

President Akufo-Addo

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Furthermore, he asserted that the successful introduction of the Universal Quick Response Code (GhQR CODE) is remarkable.  This is because it supports easy payments across banks, telcos, fintechs and merchants.

“The Universal QR (Quick Response) CODE…will propel Ghana to be amongst the first countries in Africa (if not the first)…to move towards a largely cashless economy, when fully rolled out across the country with the support of the Bank of Ghana”.

President Akufo-Addo

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Similarly, President Akufo-Addo revealed that from 2021 Q2, all National ID numbers will also become Social Security and National Insurance Trust (SSNIT) numbers. Subsequently, this will improve inclusion in the Pensions Sector.

Accordingly, this will increase the number of people on the SSNIT database from 4 million to 15.5 million. Also, it will enhance easy enlisting of new contributors to the scheme. 

“Very soon, we will link the National ID to all SIM cards, bank accounts, Births and Deaths Registry, DVLA documents, and passports.

“Mr. Speaker, it is clear that we have made significant strides in formalising the economy, and we will do even more going forward”.

President Akufo-Addo

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Support of Banking Sector amid the Pandemic

Above all, H.E. Nana Akufo-Addo disclosed that support has also been forthcoming from the Bank of Ghana, under its brilliant leadership.  For instance, the lowering of the Monetary Policy Rate by 150 basis points to 14.5 percent. 

Others were reductions in the Primary Reserve Requirement and Capital Adequacy Requirement from 10% and 13% respectively to 8% and 11.5% in that order. Likewise, interest rates based on the Ghana Reference Rate was reduced by 2%.

Finally, he said he expects the establishment of the National Development Bank to provide support to businesses in Ghana. 

“Government expects economic activity, which has already picked up, to do so even further, following the ongoing vaccination exercise.

 “We expect GDP growth to rebound strongly this year to nearly five percent (5%), above the IMF’s 2021 January projection of 3.2% growth for Sub-Saharan Africa for 2021”.

President Akufo-Addo