Finance

MTN CEO urges tax reassessment to boost mobile money growth

The Chief Executive Officer of MTN Ghana, Stephen Blewett, has called for a reassessment of tax policies hindering mobile industry growth.

Mr. Blewett lamented that taxes, constituting about 30 percent of industry revenues, serve as a major barrier to critical infrastructure and other investments necessary for modernising and expanding digital infrastructure, including the adoption of higher technologies like 5G.

He said a rethink of tax policies is, therefore, important to unleash the continent’s digital economy, highlighting the necessity for operators to collaborate closely with policy-makers to achieve mutual growth.

“We are not adversaries. Collaboration is essential. It requires us to come together and acknowledge your national priorities, understand the pressures involved and ensure that short-term decisions do not lead to long-term consequences,” he said.

He expressed concern that without suitable fiscal incentives, the challenge of modernising and expanding digital infrastructure into advanced technologies could arise.

“I wish to highlight the impact that high taxation has on the mobile industry and urge our policy-makers to reconsider the approach to taxation of the sector. Taxes constitute about 30 percent of the revenues in the industry and are a major barrier to critical infrastructure and other investments.

“Without the appropriate fiscal incentives, the funding needed to modernise and expand digital infrastructure into higher technologies, 5G for instance, and increase affordability and accessibility to mobile Internet will not materialise. We must not sacrifice long-term growth for short-term gains,” he stated.

He said this at the 2024 3i Africa Summit in Accra, which brought together leaders, policymakers, regulators, innovators and change-makers across Africa to spearhead conversations on ‘Unleashing Africa’s Fintech and Digital Economic Potential’.

Mr. Blewet also stressed the need for innovation and investment to unleash the continent’s digital economy.

He noted that policy-makers and regulators must strike the right balance between investment, innovation and revenue generation.

Elaborating on investment, he said: “You [policy-makers] must help to shape the future we all wish to see through transparent and forward-looking policies and regulations as well as the requisite institutional capacity.

“Policy and legal frameworks must encourage the establishment of innovation hubs and digital sandboxes to provide the platform for incubating, testing and rolling out new products. Such hubs will be the channels for mentoring and nurturing the next generation of African entrepreneurs while providing the necessary resources, environment and training.”

He also advised think tanks to produce research supporting advocacy and decision-making, while emphasising the importance of multilaterals establishing relevant frameworks and protocols to facilitate ongoing dialogue and intergovernmental action.

He further advocated collaboration among stakeholders to drive innovation, attract investment and create a positive impact.

Mr. Blewett commended the summit’s focus, stating: “The theme resonates with me because it lies at the core of MTN’s mission to drive connectivity and inclusion across the continent and Ghana specifically”.

He also expressed optimism about the outcomes of the summit and emphasised the importance of concrete action plans and political will in implementing transformative initiatives for Africa’s future prosperity.

 

Source: thebftonline.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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