News Guide Africa

Tag: telecoms

  • Vice President meets management of Afriwave Telecom

    Vice President meets management of Afriwave Telecom

    Afriwave Telecom has extended its warm congratulations to the Vice-President of the Republic of Ghana, Jane Naana Opoku-Agyemang.

    During a courtesy call on the Vice President, the company took the opportunity to brief Jane Naana Opoku-Agyemang about the benefits and impacts of the Interconnect Clearinghouse in Ghana.

    The team also discussed pertinent issues affecting the telecom industry, particularly regarding the Interconnect Clearinghouse (ICH) operations and tariff regime and adjustments.

    In his address, the Deputy Chief Executive Officer of Afriwave Telecom, Francis Poku, mentioned that all the Mobile Network Operators (MNOs) in the country are interconnected through the ICH.

    Interconnection is the linking of the networks of two or more service providers, thus enabling the subscribers on one network to access the subscribers of the other networks. In a multi-operator environment such as Ghana, seamless interconnection has been one of the contributory factors to the growth of the industry.

    The Interconnect Clearing House takes over all the functions relating to the preparation of billing information and reconciliation reports and the reconciliation process itself. The Interconnect Clearing House has access to information from all the operators involved in a particular call and, therefore, discrepancies are more easily identified and resolved.

    Additionally, any International Wholesale Carriers (IWCs) licensed by the National Communications Authority (NCA) that routes incoming international calls from outside Ghana are also connected to the ICH.

    Mr Poku also highlighted a noticeable growth in national interconnect traffic, noting that traffic volumes which were once at an average of 800 million per month in 2016 have now risen to about more than 1 billion minutes per month as of the second quarter of 2025.

    He emphasised that the ICH has simplified the interconnect architecture and standardised interconnect business processes among the telecom operators.

    He also pointed out that direct foreign exchange inflows from the IWCLs through the ICH have reduced from approximately 20 million dollars to under one million dollars over the last five years. This, he said, is because of alleged pricing out by the Mobile Network Operators and the impact of WhatsApp calls.

    Mr Poku appealed to the Vice President to intervene in resolving the financial and policy bottlenecks to help Afriwave Telecom thrive as a wholly Ghanaian-owned company.

    In response, the Vice President, Jane Naana Opoku-Agyemang, acknowledged the critical concerns raised by Afriwave and assured of government intervention.

    She also stated that the government will introduce policies that will support the growth of local industries as well as regional expansion.

    Afriwave Telecom Ghana Limited is a Ghanaian company which has been licensed by the Government of Ghana through the National Communication Authority to operate and manage Ghana’s Interconnect Clearing House (ICH). The ICH is a single platform which provides access of interconnection to all existing and new network providers.

     

     

  • Airtel-Tigo Debt: Gov’t negotiating haircut, cash payment reduced to US$10m


    “Minister Sam George reveals details of Airtel-Tigo’s US$400m debt restructuring during a press briefing in Accra.”

     

     

    Adnan Adams Mohammed

     

    Government of Ghana is negotiating with ATC over a mounting debt inherited for acquisition of Airtel-Tigo by the previous NPP administration for a ‘haircut’ arrangement.

     

    The debt, which stands at US$ 400 million has been reduced to US$ 200 million, but with a cash payment component of US$ 10 million which is to be paid over a period of time, the Minister for Communications, Digital Technology and Innovation, Samuel Nartey George has revealed.

     

    However, the company continues to face financial challenges, with monthly operating losses amounting to GH¢20 million as the Minister has criticized the previous government’s acquisition of Airtel Tigo, which was rebranded as AT, for a reported purchase price of US$1. He described the decision as “ill-informed and reckless,” highlighting that the company had a debt portfolio of US$400 million at the time of purchase and lacked sufficient revenue to cover its overhead costs.

     

    “The previous government acquired Airtel Tigo and rebranded it as AT with a reported purchase of US$1. Nothing could have been more disingenuous and unpatriotic. When the company was bought its debt portfolio stood at US$400million and its revenues could not meet its monthly overheads”, Sam George told journalists at a Meet-the-Press event in Accra, last week.

     

    “The core and dealing platforms have reached the end of life and neither Bharti, which operated Airtel, nor Milicom, which operated Tigo, had failed to make any meaningful investments in both companies over the preceding five years.

     

    “The decision to step in at the time can best be described as ill – informed and reckless. It was an abdication of responsibility by the then administration and minister to the best interest of Ghana.”

     

    “…Today after a debt restructuring arrangement, the debt portfolio at AT sits at about US$200million, rising every month as the company makes a monthly operating loss of GHc20million.

     

    “The bleeding needs to be stopped and urgent steps are underway to engage the company’s creditors in negotiating haircuts to ensure the company’s viability,” Sam George stated.

     

     

  • Telecoms scrap E-levy ….following govt, directive

    Telecom operators halt E-Levy charges, boosting digital transactions.

     

    Adnan Adams Mohammed

     

    Telecommunication Operators in Ghana have been directed by the Ghana Revenue Authority to cease collection of the Electronic Transfer Levy (E-Levy) effective April 2, 2025.

     

    This comes as President John Dramani Mahama assented to the Electronic Transfer Levy Act, 2022 (Act 1075) and the Electronic Transfer Levy (Amendment) Act, 2022 (Act 1089) bill, which abolishes the 1% E-levy.

     

    However, MTN Ghana, a major player in the industry, initially claimed that it could not stop the E-Levy collection for fear of breaching Bank of Ghana’s regulations explaining, the process must go through regulatory approval. Although, it has since stopped charging the levy having received the requisite regulatory directive and has made the necessary refunds in line with the demands of the Ghana Revenue Authority.

     

    “There is a process that has to be followed. I can’t abolish E-Levy until I’m told to do it. If I do it ahead of time, the Bank of Ghana will catch me,” the CEO, Stephen Blewett said while speaking at MTN House in Accra, on Wednesday, April 2, last week. He emphasized that while the government had signaled its intention to remove the levy, telecom operators like MTN must follow official directives before making changes.

     

    More importantly, Blewett also highlighted the negative impact of the E-Levy on mobile money transactions and expressed optimism that its removal would revitalize the sector.

     

    “The reason for the abolishment of E-Levy is to encourage momentum in mobile money,” he explained.

     

    He acknowledged that the tax removal is expected to boost digital transactions and financial inclusion.

     

    “We will follow the process. And once it’s gone, mobile money will regain its strength.”

     

    The E-Levy, initially introduced at 1.75% before being reduced to 1%, taxed electronic transactions, including mobile money payments, bank transfers, and inward remittances. Since its introduction in 2022, it has faced widespread criticism, with opponents arguing that it imposed an additional financial burden on citizens and discouraged digital transactions.

     

    GRA, in it directive communicated the following guidelines, thus:

     

    1. The GRA Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically return a “no charge” on all transactions posted to it by entities from midnight.

     

    2. Charging Entities must cease applying the 1% E-Levy from midnight on all their channels.

     

    3. Charging Entities must immediately process refunds for any E-Levy amounts deducted from customers effective today, 2nd April 2025. Entities are to establish an expedited refund process to handle such cases promptly and maintain proper documentation of all refunds processed. Reports of such refunds must be submitted to GRA.

     

    4. Charging Entities are to take the necessary steps to file and pay all outstanding E- Levy charged and collected on all transactions that occurred before 2nd April 2025.

     

    5. For effective reconciliation and in accordance with Section 33A of the Revenue Administration Act, 2016 (Act 915) as amended, entities must continue to post all electronic transfer transactions to ELMAS until further directives are provided.

     

    6. All entities must maintain electronic transfer records for at least six (6) years as stipulated in Section 27(3) of the Revenue Administration Act, 2016 (Act 915).

     

    “Please be informed that failure to comply with the above directives constitutes an offence and sanctions will be imposed as prescribed by law,” GRA admonished, cautioning it “will conduct regular compliance checks to ensure adherence to these directives”, the statement signed by Edward Apenteng Gyamerah, Commissioner, Domestic Tax Revenue Division (GRA), noted.

     

    Consequently, the Association of Ghana Industries (AGI) has welcomed the removal of the 1% E-Levy, stating that it will boost digital financial transactions and reduce the cost of doing business in Ghana.Ghanaian fashion

     

    The CEO of AGI, Seth Twum Akwaboah, commended the government for its decision, highlighting its positive impact on businesses, especially small and medium enterprises (SMEs).

     

    Seventy-five percent of our members are SMEs, and for them, digital transactions are essential. Any additional cost discourages their use. The removal of the levy will not only cut costs but also encourage more businesses to embrace digital financial services and electronic money transfers.

     

    “It’s a commitment the President made, and now that it has been fulfilled, we look forward to seeing its impact on business growth”, the CEO of AGI said.

     

    Also, Ing. Dr. Kenneth Ashigbey, CEO of the Ghana Chamber of Telecommunications, stressed the broader economic benefits of eliminating the E-Levy.

     

    “With this removal, we expect an increase in both the volume and value of digital transactions. This growth will boost profitability for financial institutions, leading to higher corporate tax revenues for the government, “he noted.

     

    He added: “Additionally, more digital transactions will reduce the cost of printing physical currency, benefiting the Bank of Ghana. It will also generate valuable data for policymakers to enhance fiscal and monetary strategies,”

     

    Ing. Dr. Ashigbey also noted that the removal of the E-Levy aligns with the government’s financial inclusion strategy, fostering a more digitized economy while easing financial burdens on businesses and consumers alike.