Handling physical cash costs us more – Kofi Adams

Kofi Adams has called for the urgent removal of the Electronic Levy (E-Levy), citing its detrimental effects on Ghana’s cashless economy and its broader implications for the cost of handling physical cash.

Speaking about the financial strain caused by cash-based transactions, the Minister for Sports and Recreation and Member of Parliament for the Buem Constituency highlighted the hidden costs of using physical money, including its impact on the Bank of Ghana’s budget.

“If you look at the cost of reprinting notes, it is so high that we spend more. Physically handled cash becomes dirty and worn out within a short time, and then we must reprint.

This is a burden on the system,” he noted on GHOne in an interview monitored by MyNewsGH.

He contrasted this with the promise of a cashless economy, which reduces the circulation of physical currency, thereby cutting down on printing costs and improving efficiency.

However, Adams argued that the E-Levy has become a major barrier to this vision.

“When you go to buy fuel and pay with mobile money, you are charged more. Meanwhile, if I take cash and pay the same amount, I pay nothing extra.

“Where is the motivation for going cashless when you’re penalized for doing so?” he asked, emphasizing how the levy discourages the adoption of digital transactions.

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