The Bank of Ghana (BoG) has announced sweeping new regulations for fintech companies, mandating higher capital reserves and stricter anti-fraud measures, as mobile money transactions soar to a record ₵1 trillion ($80 billion) in 2024.
The move aims to stabilize a sector growing faster than oversight frameworks—but critics warn it risks stifling innovation in Africa’s most dynamic digital payments market.
Under the regulations, fintech firms must maintain a minimum capital of ₵50 million ($4 million), up from ₵10 million, and allocate 5% of annual profits to fraud prevention systems. Mobile money providers will also face mandatory audits every six months and real-time transaction monitoring by the BoG.
“This is about safeguarding public trust,” Deputy Governor Maxwell Opoku-Afari told News Ghana in an exclusive interview. “As digital transactions grow, so do systemic risks. We cannot allow Ghana to become a playground for reckless actors.”
The crackdown follows a 30% spike in mobile money fraud last year, including high-profile SIM swap scams targeting vulnerable users. In March, over 2,000 customers lost ₵8 million in a coordinated attack on AirtelTigo Money’s network.
Startups accuse the BoG of favoring traditional banks. BitSika CEO Atsu Davoh, whose blockchain platform processes ₵200 million monthly, calls the capital hike “a death sentence for small innovators.”
“Banks failed to serve rural communities for decades. Now that fintechs are filling that gap, they want to regulate us out of existence,” Davoh said. His firm, which employs 50 Ghanaians, may lay off staff if forced to raise capital.
Others argue compliance costs will trickle down to users. Fido Loans, a lender, warns transaction fees could rise by 15% to offset new expenses. “Low-income users will suffer most,” said Head of business units, Joseph Maxwell Appiah
Traditional lenders, however, applaud the measures. GCB Bank CEO Kofi Adomakoh, whose institution lost 12% of retail customers to mobile money last year, said: “This levels the playing field. Banks have operated under these rules for generations. Why should fintechs get a free pass?”
Ecobank Ghana plans to launch its own low-fee mobile wallet, EcoCash, capitalizing on fintechs’ regulatory headaches. “Trust matters,” said Senior Banker, Business Digitization and Transformation Expert, Owureku Asare. “When platforms collapse—and they will—customers will return to institutions with physical branches and deposit insurance.”
The rules’ harshest impact may be felt in northern Ghana, where 60% of mobile money agents operate without formal licenses. In Walewale, agent Fuseini Abdulai fears shutdown. “I don’t have ₵50 million. If they enforce this, I’ll return to farming,” he said, standing beside his kiosk adorned with faded MTN and Vodafone posters.
Financial inclusion advocates warn the policies neglect marginalized groups. “Many agents can’t meet biometric verification demands,” said Barclay Paul Okari of FinAccess. “Pushing them underground will worsen financial exclusion.”
The Ministry of Finance walks a tightrope. While supporting the BoG’s stability agenda, it seeks to protect Ghana’s reputation as a fintech hub. Minister of State Abena Osei-Asare hinted at subsidies for compliant startups: “We’re crafting tax incentives to ease this transition. Innovation must not die.”
The regulations could set a precedent for Africa, where mobile money transactions reached $1.2 trillion in 2024. The IMF, which approved Ghana’s $3 billion loan program last year, praised the BoG’s “proactive stance” but urged “nuance” to avoid derailing digital growth.
Fintechs have until December 2024 to comply. For now, Kumasi-based startup Zeepay focuses on fundraising. “We’ll survive,” said COO Andrew Takyi-Appiah, “but the golden age of freewheeling innovation? That’s over.”
