The Institute of Statistics, Social, and Economic Research (ISSER) has cautioned that the recent directive restricting mobile money (MOMO) transactions has the potential of derailing efforts to digitize micro, small and medium-sized enterprises (MSMES).
ISSER decried the level of impact the new restriction is set to have on “micro and small enterprises, especially traders and farmers within the agricultural value chains concentrated in rural areas.”
“For these segments, especially traders and transporters of foodstuffs who rely on MoMo to address security concerns with carrying cash across the country, an increase in cost is likely to be transferred to consumers,” a statement released by the institution said.
It added that the directive could trigger both food and non-food inflation, adding that the burden of the revised charges could be placed at the cost of consumers.
“As service providers on the various e-commerce platforms will pass on the charges to consumers in the form of increased prices of goods and services,” said the statement.
Mobile Money (MoMo) agents released statement notifying the public of a temporary restriction on transactions. It said Cash withdrawals would be limited to GH¢1000.00 per transaction from December 1.
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ISSER also explained that the distance between 76% of MoMo agents and consumers is within 30 minutes and it takes “2 hours for over 50% of rural dwellers to reach an ATM, with only about 40% being able to reach a bank or microfinance in two hours.
According to ISSER, the situation compels consumers within such areas to opt for either higher transaction costs or resort to cash.
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