creating an enabling policy and regulatory environment to expand affordability … ·...
TRANSCRIPT
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CREATING AN ENABLING POLICY AND REGULATORY
ENVIRONMENT TO EXPAND AFFORDABILITY AND
INVESTMENT IN MOBILE BANKING: THE CASE OF GHANA
Presentation by Ministry of Communications: Ghana
made by
Kwaku Ofosu-Adarkwa
Chief Director
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PRESENTATION OUTLINE
BACKGROUND OF THE MINISTRY OF COMMUNICATIONS
INTRODUCTION
CREATING THE ENABLING ENVIRONMENT TO SUPPORT M-BANKING
FORMS OF MOBILE BANKING IN GHANA
FUTURE OF MOBILE BANKING IN GHANA
SOME SECTOR PROJECTS AND INITIATIVES AIMED AT PROMOTING M-BANKING
INVESTMENT INCENTIVES
CHALLENGES
WAY FORWARD
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BACKGROUND OF THE MINISTRY OF
COMMUNICATIONS BACKGROUND:
The Ministry of Communications was created in 2002 to develop
Policies and Initiatives aimed at promoting ICT growth and economic
development.
VISION:
To manage the convergence of ICTs to facilitate the promotion of a
viable integrated national development process within a global
setting.
MISSION:
To facilitate the development of a reliable and cost effective world
class communications infrastructure & services, driven by appropriate
technological innovations and accessible by all citizens to enhance
the promotion of economic competitiveness in a knowledge-driven
environment.
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BACKGROUND OF THE MINISTRY OF
COMMUNICATIONS(Cont’d) Some Policy Objectives To promote the development of communications infrastructure and
services for national development;
To facilitate investment in, and, strengthening of the institutional and human resource capacities in ICT to enhance quality service delivery;
To promote e-government and e-governance activities for transparency in Government business in the process of transforming the country into a knowledge economy/society;
To streamline and update regulatory laws and legislations in conformity with changing industry trends and monitor the creation of an even regulatory field to enhance fair competition and investment drive.
To support the development of ICT Industry, Research and Development and networking among stakeholders.
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INTRODUCTION
The introduction of liberalization and competition during the early 1990s has resulted in a significant growth of the mobile market;
The Telecommunications Environment has entered into the Third Generation (3G) Stage resulting in additional Value Added Services.
Ghana has gone beyond the Triple Play:
- VOICE
- VIDEO
- DATA
It is time to enter into the vigorous value added stage in ICT
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CREATING THE ENABLING LEGAL &
REGULATORY ENVIRONMENT TO SUPPORT
M-BANKING
Creating an enabling environment for rapid growth
and development of the ICT sector.
- This is being carried out under the eGhana
Project to make the legal and regulatory
environment conducive for Telecom/ICT-led
growth
- In pursuance of this, the following policies,
legislations and regulations have been
reviewed/developed:
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CREATING THE ENABLING LEGAL &
REGULATORY ENVIRONMENT TO SUPPORT
M-BANKING(cont’d)
The Electronic Communications Act (Act 772, 2008) and the Electronic Transactions Act (Act 775, 2008) to;
Facilitate the provision of e-services and online transactions such as e-banking and e-commerce etc.
National Communications Authority Act (Act 769, 2008)
National Information Technology Agency Act (Act771, 2008)
Enterprise Architecture (EA) and e-Government Interoperability Framework (2010)
Guidelines for the construction of Telecommunications masts. National Telecom Policy (2005);
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CREATING THE ENABLING LEGAL &
REGULATORY ENVIRONMENT TO SUPPORT
M-BANKING(cont’d)
Additional legislations being developed include;
i. Cyber Security Bill
ii. Data Protection Bill
iii. Electronic Communications Regulation
iv. Electronic Regulation on Dumping of Electronic Waste
v. National Digital Content Management Bill
These new legislative guidelines would help create a conducive environment to resolve challenges with the Communications Industry.
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FORMS OF MOBILE BANKING
e-ZWICH
A smartcard system introduced by the Bank of Ghana
to enable citizens pay for goods and services and carry
out banking transactions without having to physically
carry cash around.
The E-zwich cards are being issued by most banks in
the country whilst Point of Sale (POS) devices are
being deployed at major business outlets.
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FORMS OF MOBILE BANKING (Cont’d) THE ECOBANK MOBILE BANKING WITH ZAP
An instant mobile money transfer service designed for users of AIRTEL MOBILE NETWORK.
Enable customers to pay utility bills and transfer money via their mobile phones
CAL BANK SMS
Allows Customers to top up airtime with their mobile phones, request statements and transfer funds etc
Others include the Zenith Mobile Banking, GT SMS Banking, U-Mobile and the MTN MOBILE MONEY etc.
TXTNPAY SERVICES (VODAFONE)
Enable customers to pay utility bills, transfer money via their mobile phones, check bank accounts and purchase goods and services
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FUTURE OF MOBILE BANKING IN GHANA
Very Promising due to Competitive regulatory
environment created by the National Communications
Authority (NCA) which has resulted in a significant
growth of the mobile market;
Mobile Phone subscribers represent a greater
percentage of the total telephone subscriber base of
the country;
Banking Culture needs significant attention though:
- Less than 20% of Ghanaians still save with Banks
- Less than 5% of Ghanaians use the Card System
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FUTURE OF MOBILE BANKING IN GHANA (Cont’d)
Mobile Vs Fixed
98%
2%
TOTAL MOBILE TOTAL FIXED
SOURCE: NCA
THE TELECOMMUNICATIONS MARKET
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FUTURE OF MOBILE BANKING IN GHANA (Cont’d)
SUBSCRIBERS/
MONTH
OCTOBER
NOVEMBER DECEMBER
MOBILE
TELEPHONY 16,779,331 17,062,917 17,436,949
FIXED
TELEPHONY 317,216 321,349 277,897
MONTH TO
MONTH GROWTH 1.3% 1.7% 2.0%
SOURCE: NCA
Mobile subscription is currently growing at an average rate of 1.7% per month
MARKET STATISTICS AS AT DECEMBER 2010
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PLATFORM FOR MOBILE BANKING IN GHANA (Cont’d)
Undersea Cables Landing in Ghana
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PLATFORM FOR MOBILE BANKING IN GHANA (Cont’d) STATE OF TELECOM INFRASTRUCTURE
Ghana’s Communications Infrastructure is mainly privately
owned;
CABLE OWNER CAPACITY
(/Sec)
STATUS
SAT-3 Vodafone 120Gbits Operational
MainOne MainOne Ghana
Ltd
1.92Terabyte
s
Operational
Glo 1 Glo Mobile Ltd 640Gbits Operational
by April 2011
West African Cable
System (WACS)
MTN 5,120Gbits Yet to land
These bandwidth capacities together will be adequate to meet the
increasing demand for communication services, reduce cost and also
support enhanced services like M-banking.
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PLATFORM FOR MOBILE BANKING IN GHANA (Cont’d)
With 74.2% of the population already connected to mobile phones,
The granting of additional licensing to operators to land submarine
cables resulting in a total bandwidth capacity of approximately
7,160Gb/s, and also auctioning of 3 WiMAX licences to improve
connectivity, and;
The availability of mobile phones to support enhanced services, Mobile
banking stand a greater chance of becoming popular on the Ghanaian
market.
The success of this new and innovative service however, depends on
the sustenance of the creation of a conducive ICT/Telecom platform.
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SECTOR PROJECTS AND INITIATIVES AIMED AT PROMOTING MOBILE BANKING
Infrastructure Sharing/Co-location to promote rural access
A Universal Access Initiative funded by the USF to enable
Service Providers extend services to un-served and
underserved areas. 70% of Ghanaians live in rural areas.
Encouraging telecom operators to co-locate on common
masts.
Installing Payphones in Senior High schools
Using mobile Vans of Post Offices across the country
Using the Community Information Centres (CICs) as a
platform for M-banking
Enhance the patronage of e-Services such as M-banking
where distance maybe a deterring factor
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SECTOR PROJECTS AND INITIATIVES AIMED AT PROMOTING MOBILE BANKING (Cont’d)
On the part of NCA:
WIMAX licensing:
To enable service providers extend wireless services to un-served and underserved parts of the country so that citizens can enjoy the benefit of e-Services.
SIM Card/Chip Registration
Help track fraudulent activities that may be perpetuated by fraudsters.
Promotes identify ownership to avoid “identity theft”.
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SECTOR PROJECTS AND INITIATIVES AIMED AT PROMOTING MOBILE BANKING (Cont’d)
Mobile Number Portability (MNP):
To promote consumer choice
Enhance competition
Improve QoS and ensure reliable delivery of
services
Other initiatives includes;
Communications Infrastructure (Tower) Licensing
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INVESTMENT INCENTIVES
Excellent Telecom Sector and Fair Regulatory terrain
Highly developed banking network and financial services
Adherence to market liberalization and competition policies
Independent Judiciary and Legislature: Rule of Law.
Availability of trained and trainable labour and good supply of
trained workers
Increasing Private Investment incentives approved by GIPC.
Strategic location for communication facilities in terms of
international commerce
Corporate Tax exemptions for strategic investments
Customs duty exemptions for plant, machinery, equipment
and parts for strategic investments as approved by GIPC.
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High Bandwidth Cost
( However bandwidth cost has reduced from US$12,000
(E1) in 2002 to US$2,100(E1) in 2010). This will further
reduce upon the launch of Glo in April 2011. Hope to see bandwidth cost far below the US$1000 mark.
Universal Access Issues: Being addressed under GIFEC universal access programmes.
Low ICT Literacy Rate: Being tackled as part of the education reform programme.
CHALLENGES
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Invest in adequate ICT Infrastructure
Encourage academia and industry linkages to promote R&D
Train more ICT Professionals:
WAY FORWARD
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The Ministry is pursuing policies and initiatives to ensure the
promotion and efficient delivery of e-Services including
mobile banking.
Additionally, the Ministry would ensure that consumers get
value for money in the provision of e-Services.
Ghana is definitely the destination for private sector
business in mobile banking.
CONCLUSION
