The Ghanaian Consumer

11/05/2022

TIME FOR GHANAIANS TO BOYCOTT MTN?
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Scancom PLC (Formerly MTN Ghana) is the largest telecommunication network in Ghana which commands over 60% market share in terms of mobile subscriptions, internet data, voice communications, among others (averagely). There’s no denying the fact that MTN is the most preferred network in Ghana due to their wide coverage and the stability in their network compared to other companies in the industry.

Few years ago, MTN phased out the production of scratch cards. Sources reveal that the main reason for this decision was to minimise contact, a major way through which COVID 19 spread at that time. Instead, subscribers would have to use either mobile money (MoMo) or the credit transfer system in purchasing airtime.

Akin to this decision, investments in machines for the scratch cards production halted. MTN has therefore made huge savings from here. Even if these assets were not fully depreciated, it’s possible they could have been impaired by now if they were of no use and tax credits for any impairment losses have already been taken by MTN. Better still, MTN could have possibly sold this now idle equipment to recoup part of their investments in those assets. Clearly MTN has also gained here.

Now, as these equipment are no more there, maintenance cost, electricity to run them, labour cost on these machines and other incidental costs have all been saved in the short and long terms.

Commissions on scratch cards paid to big distributors and wholesalers in the distribution chain have all been saved and pocketed by MTN. These commissions are no longer paid to the distributors. Indirectly these distributors and wholesalers have all been kept out of business. Employees who worked with these distributors have also lost their jobs due to this.

With all these benefits that MTN Ghana has enjoyed for scrapping recharge cards, the expectation was for MTN to follow the footsteps of their major competitor, Vodafone, to scrap mobile money charges on all P2P transfers to lessen the burden of the newly introduced ELEVY on subscribers. MTN Ghana has only reduced its MoMo charges from 1% to 0.75% and from GHS10.00 to GHS7.50 for the transfers above GHS1,000.00.

We believe that MTN Ghana should be able to comfortably absorb these charges as Vodafone Ghana is doing. All P2P transfers with Vodafone Cash are free in Ghana no matter the amount. In transferring monies currently in Ghana, the only charges Vodafone subscribers bear is the ELEVY. Prior to the ELEVY, Vodafone Cash users did not incur any charges on all P2P transfers.

With the kind of LOYALTY MTN Ghana has enjoyed from its cherished customers and how profitable the company has been over the years, MTN should give it a second thought to imitate what Vodafone Ghana is currently doing.

Others may argue that MTN offers 200% bonus on all airtime bought using MTN mobile money. This is however not peculiar to only MTN as all Telcos have put out some of these promotions to encourage the usage of their mobile money services. In addition, both Vodafone and MTN all engage in corporate social responsibilities in different forms. However, scrapping the MoMo charges will be the gesture that will directly benefit each MTN subscriber and MTN Ghana is encouraged to consider this.

We the consumers of MTN’s services must constantly remind them about this. If this is not urgently considered, then we could consider switching to Vodafone Ghana which will help reduce our transaction cost to enable us to save some money for other commitments.

Is it time for Ghanaians to move on from MTN Ghana? What are your comments? Let’s continue the discussions down below.

24/04/2022

E-LEVY ON UTILITY PAYMENTS? M*F AND GRA MUST COME CLEAR.

There is no denying the fact that the cash flows of most government institutions in Ghana have improved over the past few years since the proliferation of mobile money and online payment services. This together with other things have also improved the efficiency of the treasury processes of these institutions. Specific examples of these institutions are the Ghana Water Company Limited (GWCL) and ECG. People sit at the comfort of their homes and make payments to these institutions. Not long ago, there were long queues at the premises of these institutions just to make payments leading to waste of productive hours of most Ghanaians.

These convenient methods of payments also enable people to make payments in bits until they finally settle the total amounts on their bills. For instance, previously in a compound house where more than ten people used one water meter, it was very difficult for the landlord to receive payments from his tenants at the same time to remit to the GWCL. However, with these new payment methods, the landlord can conveniently remit any amounts received immediately to GWCL without waiting to receive the total amount. This always improves the cash flows of the GWCL and reduces the risk of the landlord “chopping” any amounts initially received with the excuse of replacing it by the time everything is received.

In the Ministry of Finance’s release of “FAQs on E-LEVY”, it states in Number ten that utility payments are subject to E-levy once the payment is made from mobile money account, bank account, or through a merchant payment platform and exceeds the GHS100.00 daily threshold.

Utilities generally are defined to include water, electricity as well as subscriptions such as Cable TV, security, internet etc. The M*F and GRA must come clearer on what specifically the utilities refer to. Currently, it is assumed that utilities as used in the document encompass all the above-mentioned services.

The Ghanaian Consumer is of the view that this will greatly negatively impact the cash flows of the GWCL and ECG if water and electricity are captured within the scope of “utilities” as contained in the M*F’s document.

We are therefore of the view that payments for water and electricity should be exempted from this levy to protect the gains these institutions have made. The M*F, GRA and these utility institutions could liaise to also make it possible for Ghanaians to pay for these on the Ghana.Gov platform.

The Public Utilities Regulatory Commission should also add its voice to this conversation to ensure that utilities payments (water and electricity) are exempted from this levy.

22/04/2022

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20/02/2022

Ghana Institute of Journalism SRC Executives To Step Down Due To Gross Incompetence? GIJ Students To Boycott SRC Activities? Find Out More.

20/02/2022

Ghana Institute of Journalism SRC Executives To Step Down Due To Gross Incompetence? GIJ Students To Boycott SRC Activities?

12/02/2022

Finally!! HE Dr. Bawumia Speaks About ELEVY . Find Out More About What He Thinks About The ELEVY!!

09/01/2022

This is about what I saw at the Makola market in Accra Central today 8 January 2022. Soem maret women selling pepsodent which expires in February 2020 at 5 Ghana Cedis : a product that retails at 7 Ghana Cedis. Share it so it gets to Unilever Ghana Limited and the Food And Drugs Authority so these batch of products are removed from the market. Let's not allow unscrupulous individuals to make money from the sale of these almost expired products at the expense of our dental health. Expose all of them now. Those distributors who released these products to the market women should be severely punished and made to sign a bond of good behaviour.