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HomeTech NewsTapTap Send advocates regulatory reforms to boost remittance flows in Ghana

TapTap Send advocates regulatory reforms to boost remittance flows in Ghana

The Head of TapTap Send Africa, Daryl Mawutor Abraham, has called for a more collaborative regulatory approach to support Africa-focused money transfer operators (MTOs) in maximizing remittance inflows into Ghana.

His remarks follow the lifting of a one-month suspension imposed on TapTap Send by the Bank of Ghana (BoG).

The BoG had sanctioned the company for operating a cedi-based wallet abroad without prior approval, citing violations of Ghana’s banking and forex laws.

Mawutor Abraham clarified that the wallet was designed exclusively for Ghanaians abroad to hold cedis for transfers back home, akin to how Ghanaian banks allow customers to hold foreign currency accounts without regulatory permission from other jurisdictions.

The suspension, which spanned the month of November 2024, halted all TapTap Send operations in Ghana, resulting in a loss of approximately US$100 million in remittances. While some customers switched to other services, many withheld transactions, expressing trust in TapTap Send’s platform.

Mawutor Abraham lamented the lack of prior engagement from the BoG, arguing that better dialogue could have prevented the sanctions and their subsequent impact on remittance inflows. “A more understanding and supportive regulatory environment is essential to avoiding disruptions to genuine remittance flows,” he emphasized.

Remittances play a critical role in Ghana’s economy, contributing about US$5 billion annually—a vital support for families, education, health, and infrastructure.

TapTap Send alone accounts for over US$1.5 billion annually, a figure more than twice the US$663 million foreign direct investment (FDI) recorded in 2023 and quadruple the US$326 million FDI reported in 2024.

Mawutor Abraham stressed that the contributions of MTOs like TapTap Send deserve greater recognition.

“Money transfer companies bring in more funds to support Ghana’s economy than FDI. This makes it crucial for regulators to appreciate our role and collaborate with us to sustain this vital inflow,” he said.

Mawutor Abraham also criticized Ghana’s requirement for newly licensed MTOs to have at least three years of operational experience.

According to him, this regulation is unique to Ghana and poses unnecessary barriers to entry for innovative players in the sector.

While industry players reportedly proposed the three-year rule, he argued that it does not align with international standards and could stifle competition and innovation in the remittance space.

In response to the challenges, TapTap Send has withdrawn the cedi-based wallet and is working with the BoG to reintroduce it under full compliance. To win back customer trust and incentivize usage, the company has launched the TapTap Sanbra Promo, offering:

Return air tickets and cash prizes for diaspora customers.
Cash prizes for recipients in Ghana.

Additionally, TapTap Send has introduced a charity initiative that matches every dollar sent to eligible Ghanaian charities, up to GHS1 million per charity.

Beyond remittances, TapTap Send supports Ghana’s creative and tech ecosystems by partnering with 40 content creators and facilitating diaspora connections through platforms like Zoom, which provide medical, legal, and other forms of support.

Mawutor Abraham’s call for regulatory reforms underscores the need for a balanced approach that safeguards compliance while fostering growth in the remittance sector. With remittances outpacing FDI as a key economic driver, enabling MTOs like TapTap Send to operate seamlessly is crucial for Ghana’s development.