Richard Gardner, CEO of Modulus, a U.S.-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges, has chastised President Nana Addo Dankwa Akufo-Addo of his decision to tax the Mobile Money (MoMo) industry, labelling it as “a shame and ill-conceived”.
According to the Chief Executive Officer, the MoMo tax will not only worsen the plights of the lower income earning group of the population, but also greatly affect Ghana’s fintech drive.
“I’ve seen a lot of articles and op-eds about the physical security aspect of this proposed e-Levy… That the new tax will put craftsmen, labourers, truck drivers, and artisans at increased risk of home invasions and highway robbery, and that may well be true. But that isn’t the only risk of the ill-conceived digital tax.”
Richard Gardner
Mr Gardener noted that the e-levy has the tendency to erode the gains made in the cashless drive and reverse the country back to the ‘cash and carry’ days.
“The greatest societal threat of this e-Levy is that it is a complete reversal on the pro-technology brand that Ghana has been curating over the past half-decade. When discussing fintech in Africa, one would be remiss if they didn’t consider Ghana. It was mostly moving in the right direction. Even with their Central Bank Digital Currency (CBDC), they are moving forward with more pragmatism than we’re seeing in other regional countries, like Nigeria. It is truly a shame that the President is considering that the industry should be targeted because it is creating a lot of value.”
Richard Gardner
Technology, the New Frontier
The U.S.-based developer indicated that technology is the great equalizer. He asserted that technology is the new frontier, especially financial technology, which is currently enjoying an unprecedented boom.
“The countries that are building a culture of progress and innovation will enjoy this boom and build 21st century economies that will help developing countries rise up, well beyond where most would believe possible. Technology has that capability. And, instead of doubling down on tech, supporting a rapidly growing industry, the government is punishing its citizenry for embracing it. That’s not just a mixed message, it is the wrong message.”
Richard Gardner
Though Mr Gardener recognised the fact that COVID-19 and the happenings in Ukraine have weakened economies all over the world, he thinks that should not be an excuse for the government to want to destroy the fintech industry.
“I think we’re at a pivotal time in history. We’ve been hit by the pandemic, and now there’s much geopolitical uncertainty in Eastern Europe. But, through it all, financial technologies have made significant jumps over the past few years. That’s because these new technologies are truly transformative in nature. It is something that countries should want to foster, not tear down with unwieldy taxation.”
Richard Gardner
In a recent BBC interview, President Nana Akufo-Addo answered some tough questions about the state of the country’s economy. When confronted about the e-Levy, he justified his decision, saying that “We think it is necessary [to tax MoMo], they’re [Ghanaians] not already impoverished. We are talking about taxing an industry, where a lot of value is being created and we want to also bring that value into government’s coffers.”
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