Chief Executive Officer of Afb Ghana, in charge of Quickloan on MTN Mobile Money, Arnold Parker has said their product, Quickloan will be forced out of the market if the Electronic levy comes into force.
According to him, the 1.75% E-levy rate coupled with its interest rate ranging from 6.9% to 12.5% will force “Qwikloan” out of the market within a matter of a year.
This he said in a Facebook post commemorating the 4years of operation since the Mobile Money loan initiative was introduced in collaboration with telecommunication company, MTN.
“Four years ago today, together with our partners MTN and Jump, we launched what has arguably become Ghana’s most utilized financial product -Quick loan.
He said, “In the 4 years that Quickloan has been in existence, we have disbursed over Ghc7billion to well over 4.2 million people. Interesting that the Quickloan anniversary comes at a time when heated discussion on the e-Levy rages on,” Arnold Parker stated.
He continued “If I plug in the proposed e-Levy rate into our financials, Quickloan would cease to exist within a year. Yet it is a product like Qwikloan, which has been a lifesaver for millions in their times of need, that has the potential to transform this economy”.
The Electronic Transaction Levy, 1.75% levy on all electronic transactions, was announced by the Finance Minister, Mr. Ken Ofori Atta on Wednesday, November 17, 2021. It will be borne by the sender and will reflect on mobile money payments, bank transfers, merchant payments, and inward remittances.
Mr. Ofori Atta indicated the levy will be used to address entrepreneurship, youth employment, cyber security, digital, and road infrastructure among others if it is approved by Parliament to come into force on January 1, 2022.
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