5 hours Ago By News Ghana
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/tech-chamber-denies-claims-of-missing-us10-billion-in-remittances/The Chamber of Technology (COT), the leading body representing licensed fintech companies in Ghana, has firmly rejected recent allegations that over $10 billion in inward remittances remains unaccounted for between 2019 and 2023.
In a statement issued on February 20, 2025, the Chamber labeled the claims as “misleading and potentially damaging to Ghana’s financial ecosystem,” emphasizing that fintech firms operate within strict regulatory frameworks set by the Bank of Ghana (BoG).The controversy stems from assertions by industry observers, including banking consultant Dr. Richmond Atuahene, who pointed to discrepancies in official remittance figures, suggesting that $10.
6 billion could not be traced during the period in question.These claims gained traction last year when the central bank denied accusations that Money Transfer Organizations (MTOs) had withheld billions in remittances, including sums exceeding the $3 billion IMF bailout package. The BoG defended its oversight, citing annual increases in remittance values and robust regulatory mechanisms.
Despite these assurances, skepticism persisted, prompting the BoG, under new leadership, to initiate an audit of remittance flows for the final quarter of 2024—a year that saw inward remittances rise to $6.65 billion. This move reignited calls for a broader investigation into the alleged discrepancies.
In its response, the COT clarified the operational structure of remittance processing in Ghana, stressing that fintech companies do not directly handle foreign exchange inflows. Instead, licensed banks receive forex from MTOs, convert it to cedis at regulated rates, and disburse the funds through fintech platforms to recipients via mobile money wallets or other digital channels. “This ensures that forex flows remain within the formal banking sector, with banks managing and reporting all transactions,” the Chamber explained.
The COT also highlighted the collaborative nature of Ghana’s remittance ecosystem, which includes banks, e-money issuers, and fintech firms. “Any discussion about remittance flows must consider the entire ecosystem, not just fintechs,” the statement noted. It further pointed out that Ghana’s digital remittance model aligns with global trends, where mobile money platforms are increasingly used to lower costs, enhance security, and improve financial inclusion.
Citing international data, the Chamber revealed that mobile money remains the most cost-effective method for sending remittances. In 2024, the average fee for sending $200 via mobile money was 3.54%, compared to the global average of 6.
35% for all methods. In Ghana, the average cost for the same amount stood at 6.4% in the first quarter of 2024.
The COT warned that unverified claims could tarnish Ghana’s reputation as a fintech leader in Africa, potentially deterring investment and innovation in the sector. “Ghana has built a strong reputation in digital finance, attracting significant investment. Unverified reports of missing funds can create unnecessary panic and harm this progress,” the statement read.
To address concerns, the Chamber called for a structured and transparent review of remittance operations, advocating for an inclusive approach that involves all stakeholders, including banks, e-money issuers, and regulators. “We support a broad-based industry review to enhance transparency and efficiency,” the COT stated, reaffirming its commitment to upholding industry best practices.The Chamber concluded by urging continued collaboration among stakeholders to ensure Ghana’s remittance infrastructure supports financial inclusion, economic growth, and forex stability.
“Ghana’s fintech sector remains committed to the highest standards of compliance, security, and operational excellence. We are open to discussions that promote the integrity and growth of the financial ecosystem,” the statement emphasized.As the debate over remittance transparency continues, the COT’s assurances aim to restore confidence in Ghana’s fintech sector while calling for a balanced and evidence-based approach to addressing the concerns raised.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/tech-chamber-denies-claims-of-missing-us10-billion-in-remittances/.
