GHANA FAST FACTS KEY INSIGHTS DATA DEEP DIVE INDEXES PRICING OPERATORS CONCLUSION

FAST FACTS


VOLUME OF REMITTANCES
USD 3,520 million
World Bank, 2019
AVERAGE PRICE OF REMITTANCES TO SEND 200 USD
6.6%
Remitscope Research, 2020
TOP 5 COUNTRIES

VOLUME OF REMITTANCES
USD 3,520 million

World Bank; 2019


AVERAGE PRICE OF REMITTANCES TO SEND 200 USD
6.6%

Remitscope Research, 2020


TOP 5 COUNTRIES


FINANCIAL INCLUSION
58% of adults have an account at a financial institution, incl. Mobile money
FINXED, 2017
NUMBER OF OPERATORS
sending to:
29
VERY COMPETITIVE MARKET

RemitSCOPE Research, 2020
paying out:
30

RemitSCOPE Research, 2020

FINANCIAL INCLUSION
58% of adults have an account at a financial institution, incl. Mobile money

FINXED, 2017


NUMBER OF OPERATORS
sending to: 29
*COMPETITIVE MARKET
paying out: 30

Remitscope Research, 2020


KEY INSIGHTS

ACCOUNTS & DIGITAL PAYMENTS

Fintech is driving digital usage and remittance-linked products

At 58% account ownership, Ghana is 9th in Africa for financial inclusion, but there is more that can be done. The National Financial Inclusion Strategy aims to increase account ownership to 85% by 2023. End-to-end digital cross-border remittance services and an interoperable, inclusive, competitive payment system will reduce remittance costs and reduce the need for agents.


Digital usage is growing in Ghana with a strong Fintech sector. There are opportunities to develop remittance-linked products, such as savings, investment, and insurance products for the diaspora.

01

02
DOMESTIC PAYMENT INFRASTRUCTURE

Digitization and interoperability are helping to reduce costs

Ghana has a well-developed domestic payments system. In 2018 there were 1,009 access points per 100,000 people and over 180,000 mobile money agents. The market is digitizing quickly, helping to reduce costs and bring efficiency.


Domestic aggregators are enabling IMTOs to rapidly access the market. Inbound remittances can be terminated through several different methods.


Interoperability exists between all financial service providers in Ghana, facilitated through GhIPSS Instant Pay, a platform for instant payments across bank accounts and mobile wallets.


03
LICENSING & REGULATORY ENVIRONMENT

Clear regulations but need to be reconsidered to reduce costs

The regulatory environment in Ghana is clear and well defined. The recently introduced Payment Systems and Services Act 2019 has created a framework for payments. This will allow the market to grow and support financial inclusion. However, IMTOs, NBFIs and PSPs must partner with a bank in Ghana to be authorized which creates extra costs.


Outbound remittances from Ghana are restricted. Only three banks are authorized to offer low value P2P remittance transactions from Ghana to other African countries.

DATA DEEP DIVE



LINKS TO KEY REMITTANCE REGULATIONS

Ghana currently has no specific guidance for money transfer businesses but will be issued soon. Ample information is available on licensing and all MTOs and NBFIs must partner with a bank to payout international remittances.

INDEXES





IMPORTANCE OF
REMITTANCES

01
score
1 Senegal 84
3 The Gambia 69
4 Ghana 68.5
5 Ethiopia 65.5
18 Namibia 14.5

DIGITAL
READINESS

02
score
1 Kenya 100
2 Ghana 96
3 Uganda 96
17 Ethiopia 20
18 Gambia 8

MARKET
OPENNESS

03
score
1 Gambia 95
5 Mali 88
6 Ghana 88
7 Niger 86
18 Sudan 6



What do these numbers mean ?



IMPORTANCE OF REMITTANCES


This is a composite score that reflects the size of formal remittance flows to the receive country, how important these are to the country's economy and (at household level) the proportion that receive money from overseas (including informal). Weights are applied by experts. Scores out of 100.


DIGITAL READINESS


This is a composite score that reflects how ready a country is for international remittances to be terminated directly into digital accounts (including bank account and/or mobile money (MM)).  The Index includes whether the regulation permits money to be received into mobile wallets, account ownership and whether there is domestic MM interoperability. Weights are applied by experts. Scores out of 100.


MARKET OPENNESS


A composite score that reflects where barriers to entry/operate are low for different types of market players. Factors include: lack of specific guidance for RSPs; existence of exclusivity practices; if there is a significant parallel FX market; the numbers of operators sending to a country and international remittance payment aggregators present. Weights are applied by experts. Scores out of 100. 



For more information on how the indexes were calculated please download our methodology.


PRICING

AVERAGE COST TO SEND TO GHANA IS AROUND GLOBAL AVERAGE

The average cost of sending to Ghana, 6.5% of the send amount, from its top 5 corridors falls slightly below the global average of 6.7%. Progress is still needed to reach the SDG 10.c goal of 3% average costs.

AVERAGE COST TO SEND EQUIVALENT OF USD200 BY TOP 5 CORRIDORS

Of the 5 corridors surveyed, the UK was the cheapest at 4.5% with one operator offering rates as low as 1.9% - including fee and foreign exchange (FX) costs. The most expensive corridor, Nigeria, is 15.7% and there are few formal operators, informal players dominate this corridor. Informal operators typically charge a 2% fee plus an FX rate which varies by operator.

AVERAGE COST BY METHOD TO SEND EQUIVALENT OF USD200 TO GHANA

At 5.3%, end-to-end digital remittance services are much cheaper than their cash-to-cash counter parts (9.1%), although many operators offer a mix of options. Terminating into mobile wallets is common in Ghana, even for informal operators. This has helped to drive down the costs as mobile wallet terminations are some of the cheapest services in the corridors surveyed.

LIST OF OPERATORS

Operators sending to Ghana (29)

ATL Money Transfer
Boss Revolution
EzRemit
GES Money
HomeSend
Horizon Exchange
Immedi8 Money Transfer
Money Exchange
MoneyGram
MTN Homeland
Neteller
Pay Angel
Ria
Samba
SendWave
SFB Capital Systems
Sigue
Sika Cash Money Transfer
Skrill
Small World
Star Money Transfer
Transfer Galaxy
TransferWise
Unity Link
Vigo
Wari
Western Union
WorldRemit
Xpress Pay

Operators Paying Out (30)

Absa Bank of Ghana Ltd.
Access Bank (Ghana) Limited
Agricultural Development Bank Limited
AirtelTigo
ARB Apex Bank Ltd
Bank of Africa, Ghana Ltd
CAL Bank Limited
Consolidated Bank Ghana Limited
Ecobank Ghana Limited
FBNBank (Ghana) Ltd
Fidelity Bank Limited
First Atlantic Bank Ltd
"First National Bank (Ghana) Ltd (in the process of merging with GHL Bank)
GCB Bank Limited
Ghana Post
GN Bank Limited
Guaranty Trust Bank (Ghana) Limited
MTN MoMo
National Investment Bank Ltd
OmniBank Ghana Limited
Prudential Bank Limited
Republic Bank (Ghana) Ltd
Societe General (Ghana) Limited
Stanbic Bank Ghana Ltd
Standard Chartered Bank (Ghana) Limited
United Bank for Africa (Ghana) Ltd.
Universal Merchant Bank Ltd
Vodafone Cash
Zeepay
Zenith Bank (Ghana) Limited

Aggregators (3)

MFS Africa
TerraPay
Thunes

FINAL THOUGHTS

RAPIDLY IMPROVING AND MATURING REMITTANCE MARKET

Sending to Ghana is cheaper than many of its neighbours. Fintechs and mobile money are helping to digitize the market, but costs can be further reduced by removing the need for an operator to partner with a bank. The domestic payments ecosystem is well developed but there are opportunities for improvement. Financial inclusion is relatively high, but more effort is needed to include women, rural populations and the unemployed.


Ghana is one of the pilot countries chosen for PRIME Africa. As such, a full diagnostic report and a shorter factsheet have been developed and presented to key stakeholders in the country. The diagnostic details all aspects of the remittance market, including key players, stakeholders, and recommendations. The factsheet provides a high-level digest of the key factors.