The Ghanaian stock market is poised for a strong bullish performance following the presentation of the 2025 budget statement by Finance Minister Dr. Casel Ato Forson.
A key highlight of the budget is the scrapping of the Electronic Levy (E-Levy), a move that has sparked optimism among investors and analysts.
Market expert and analyst, Ms. Gifty Annor-Sika Asantewah, President of Women in Forex Ghana, in an interview with the Vaultz News predicted that the cancellation of e-levy in the 2025 budget will significantly boost investor confidence, particularly benefiting MTN Ghana, one of the largest listed companies on the Ghana Stock Exchange (GSE).
Ms. Annor-Sika Asantewah believes that the removal of the E-Levy will lead to a surge in investor confidence, reversing the negative impact the tax had on the stock market when it was introduced in 2022.
“The E-Levy was a tax on electronic transactions, including mobile money transactions, which discouraged many Ghanaians from using digital financial services. This directly affected companies like MTN Ghana, whose mobile money platform serves as a major revenue stream. The introduction of the levy led to a sharp decline in mobile money transaction volumes, causing MTN Ghana to lose over 30% of its stock value on the GSE.
“The tax not only reduced revenues for the telecommunications giant but also discouraged both local and foreign investors from actively participating in the market. Now, with the E-Levy scrapped in 2025, I expect a significant rebound in mobile money transactions, which will ultimately reflect in a strong performance for MTN Ghana’s stock thereby igniting bullish momentum on the Ghana stock exchange.”
Ms. Gifty Annor-Sika Asantewah
MTN Ghana to Drive Market Growth
MTN Ghana is widely regarded as a key driver of the Ghanaian stock market due to its strong financial performance and market capitalization. The Analyst argued that with the E-Levy no longer in effect, mobile money transactions will return to pre-levy levels or even surpass them, boosting MTN Ghana’s revenues. “This will make the company’s stock more attractive to investors, potentially triggering a surge in its share price on the GSE,” she added.
“A strong performance by MTN Ghana is expected to have a ripple effect on the entire stock market. As the company’s stock value increases, investor confidence in the GSE will improve, encouraging both individual and institutional investors to increase their participation. The increased demand for stocks could further push the market into a sustained bullish trend, benefiting other listed companies as well.”
Ms. Gifty Annor-Sika Asantewah
Beyond MTN Ghana, Ms Annor-Sika indicated that other sectors of the Ghanaian economy are also expected to benefit from the removal of the E-Levy. The financial services industry, particularly banks and fintech companies, will likely experience a boost as digital transactions increase. “Banks that offer mobile banking and digital payment solutions will see higher transaction volumes, leading to improved revenues and profitability”.
“In addition, the removal of the tax will encourage greater financial inclusion. Many small businesses and individuals who had shifted away from mobile money transactions due to the levy may now return, leading to increased economic activity. This could translate into higher earnings for businesses, including those listed on the stock market, further supporting the bullish outlook for the GSE.”
Ms. Gifty Annor-Sika Asantewah
Government’s Pro-Business Stance
The decision to scrap the E-Levy is seen as part of the government’s broader efforts to create a more business-friendly environment. By eliminating barriers to digital financial transactions, the government is promoting economic growth and enhancing Ghana’s attractiveness to investors.
The market analyst believes that in addition to the removal of the E-Levy, the government must continue implementing policies that support the stock market’s growth.
“This includes strengthening regulatory frameworks, ensuring macroeconomic stability, and providing incentives for more companies to list on the exchange. A deeper and more liquid stock market will attract long-term investors and contribute to Ghana’s economic development.”
Ms. Gifty Annor-Sika Asantewah
On the outlook for the Ghana Stock Exchange, Ms. Annor-Sika noted the Ghana Stock Exchange has faced challenges in recent years, including economic uncertainties and currency fluctuations that have affected investor sentiment. “However, with the 2025 budget signaling a shift toward market-friendly policies, there is renewed optimism that the stock market will experience a period of sustained growth.”
In her final words, she noted that the removal of the E-Levy is a game-changer for the GSE, as it removes a key obstacle to digital transactions and financial sector growth. If this positive momentum is sustained, Ghana’s stock market could see increased participation from both local and foreign investors, leading to improved market liquidity and higher stock valuations.
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