What's Happening? MTN Announces New Cashout Rates Effective From July

Effective July 1st, the telecommunications colossus MTN will increase mobile money withdrawal transaction fees to GHS20 for all withdrawals exceeding GHS2,000.

MTN Ghana

In an SMS circular to customers, MTN MobileMoney Limited stated, "Y'ello Valued Customer, please be advised that beginning July 1, 2023, Cash out transactions under GHC2,000 will incur a 1% fee. Above Ghc2,000, cash-out transactions will incur a fixed fee of Ghc20. This will be deducted from your bank account. Do not pay any additional fees to MoMo agents. Simply Momo it"

Currently, the utmost cash-out fee is 1% for all withdrawals up to GHS1,000 and GHS10 for all withdrawals above GHS1,000. According to the new circular, however, the 1% charge now applies to amounts up to GHS2,000, and the maximum fee has been increased to GHS20.

Additionally, beginning on July 1, 2023, any cash-out transaction between GHS1,000 and GHS2,000 will incur a fee greater than GHS10.

This follows a period of economic difficulty, during which citizens have complained of soaring inflation, rising prices for products and services, job losses, and low income.

A 1% electronic transfer levy (e-levy) has been imposed on the vast majority of digital financial transfers made by Ghanaians.

MTN has not yet provided an explanation for the increase in cash-out transaction fees, however.