ATMIA Africa Regulatory Liaison Committee Africa Country Profiles:

Africa Banking Country Profiles - Focus on Ghana

Hosted by ATMIA Africa Regulatory Liaison Committee

Michael Lee, CEO, ATMIA Andrew Dean, Executive Director, Africa and Middle East, ATMIA

Guest Panelist: Clara Arthur, GM: Projects and Business Development at the Ghana Interbank Payments and Settlement Systems (GhIPSS) Housekeeping

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. For technical issues – [email protected] Agenda

. ATMIA Africa country profile Ghana – Stakeholders, Regulation, Country and Banking Data

. Ghana in-country insight – interpretation and opportunities

. GhIPSS profile and role

. Q&A, items for future discussion ATMIA Africa Regulatory Liaison Committee – Country Profiles

A service for ATMIA members from the ATMIA Africa Regulatory Liaison Committee

Profiles of select African countries for banking, ATM and payments stakeholders

Country Profile for: Ghana Content – ATMIA Africa RLC Country Profile for Ghana

. Country Snapshot

. Industry Stakeholders . , switches, solution providers, associations

. Legislation and Regulations . Banking, payments, privacy and data protection

. Country Metrics . Addressable population, road and electricity infrastructure, banking maturity, technology penetration, business environment

. Banking and Payment Metrics . Mobile, ATM, payments, financial inclusion Ghana - Snapshot

Population: 27 million

Regional co-operation: Part of Economic Community of West African States (ECOWAS) – Benin , Burkina Faso, Cabo Verde, Côte D'Ivoire, The Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali Niger, Nigeria, Senegal, Sierra Leone, Togo

Neighbours: Ivory Coast in the west, Burkina Faso in the north, Togo in the east

Top cities: • – 2.3m+ • Kumasi – 2m • Tamale, Takoradi, Achiaman – 200 to 300k+

Top industries: • Services 47% • Agriculture 20% • Construction 10% • Transport 9% • Mining 7% • Manufacturing 6% • Utilities 1% Industry Stakeholders – Banking and Payments

. Central , Switches and Clearing Houses . Licensed Banks . Industry Associations . Regional Economic and Banking Co-operation . Mobile Money Operators . Other Telecoms and Solution Providers Industry Stakeholders – Banking and Payments

Central Bank, Switches and Clearing Houses Bank of Ghana – GhIPSS

Licensed Banks https://www.bog.gov.gh/privatecontent/Banking_Supervision/LICENSED%20BANK S%20Addresses%20-%20June%20%202016.pdf

Regional Economic and Banking Co-operation ECOWAS (Economic Community Of West African States Industry Stakeholders – Mobile, Telco and Payment Solutions

Mobile Money Operators Airtel MTN Tigo Vodafone

Telecoms Authority National Communications Authority Legislation and Regulations – Banking and Payments

. Banking The Act makes the BOG the authority Bank of Ghana Act, 2002 Act 612: responsible for payment and settlement systems in Ghana. Specifies how cheques are drawn, accepted and paid. A process has been set in motion by the Bank of Ghana to have this Act The Bills of Exchange Act, 1961, Act 55: reviewed to reflect current trends. Legislative framework which further empowers the BOG to oversee and manage the payment systems - to establish, operate, promote and supervise payment, funds transfer, clearing and settlement systems subject The Payment Systems Act, 2003, Act 662: to such rules as it may publish;

. Payments, Agency, Mobile and Electronic Banking

To provide for and facilitate electronic communications and related transactions in the public interest, and to (a) remove and prevent barriers to electronic communications and transactions; (b) promote legal certainty and Electronic Transactions Act 2008, Act 772 confidence in electronic communications and transactions https://www.bog.gov.gh/privatecontent/Banking/National%20Payments%20St National Payments Strategy rategy%20Final%20version.pdf Legislation and Regulations – Inter-bank Settlement, Financial Inclusion, Data Protection

. Inter-bank Settlement

Cheque Codeline Clearing with Cheque Truncation Guidelines and Operational Procedures

Ghana Automated Clearing House Direct Credits & Debits Guidelines and Operational Procedures.

• Ghana Bankers’ Clearing House Rules; https://www.bog.gov.gh/privatecontent/Banking/LEGAL%20 AND%20REGULATORY%20FRAMEWORK.pdf

. Data Protection, Privacy and Data Sovereignty

https://www.dataprotection.org.gh/sites/default/files/Data%20Prot Data Protection Act 2012 ection%20Act%20,%202012%20(Act%20843).pdf National Payments Strategy Country Metrics – Economic, population, infrastructure and business

South Ghana Nigeria Africa Kenya Tanzania Addressable Population GDP per capita (US$) 1442 3 203 6 484 1 358 955 Population (millions) 27 178 54 45 52 Employment of working age pop. (of age 15+) 68% 52% 39% 61% 86%

Road and Electricity Infrastructure Quality of roads 53% 38% 70% 61% 43% Quality of electricity supply 42% 23% 51% 55% 35%

Business Environment Corruption Percpetion Index (Rank out of 168) 56 136 61 139 117 Ease of doing business (Rank out of 189) 114 169 73 108 139

Data sources: • World Bank • World Economic Forum • Transparency International Country Metrics – Banking and consumer technology

South Ghana Nigeria Africa Kenya Tanzania Banking Maturity Availability of financial services 57% 59% 88% 67% 52% Soundness of banks 62% 68% 93% 75% 60% Account at financial institution (of age 15+) 35% 44% 69% 55% 19% Commercial bank branches (per 100,000 people) 6 6 11 6 2 ATMs per 100,000 (per 100,000 people) 8 16 66 10 6 Mobile accounts (per 100,000 people) 13 2 14 58 32

Technology Penetration Mobile cellular subscriptions (per 100 people) 115 78 149 74 63 Fixed broadband subscriptions (per 100 people) 0.3 0.0 3.0 0.2 0.2 Internet users (per 100 people) 19 43 49 43 5 Fixed telephone subscriptions (per 100 people) 1.0 0.1 6.9 0.4 0.3

Data sources: • World Bank • World Economic Forum • Transparency International Retail Banking Data - Access

Barclays Bank of Ghana Fidelity Bank Access Bank Retail Banking Data - Access Official Data – Bank of Ghana

E-zwich (Biometic Payment Card)

5 year 2010 2015 growth Total cards issued 496 538 1 369 369 176% Transaction volume 460 746 2 251 101 389%

gh-link (ATM interbank card switch)

3 year 2012 2015 growth Volume 10 295 1 899 645 18352% Value (GH¢'million) 1.10 305.14 27640%

Mobile Money (Airtel, MTN, Tigo, Vodafone)

3 year 2012 2015 growth Mobile phone subscribers 25 618 427 35 008 387 37% Mobile money customers 3 778 374 13 120 367 247% Active MM customers 345 434 4 868 569 1309% Volume 18 042 241 266 246 537 1376% Value (GH¢'million) 594.12 35 444.38 5866% Next Steps

. Extend profile to include required metrics and profile information for bank and non-bank stakeholders

. Obtain input from broader members and non-members on profile contents and scope

. Finalise profile scope

. Obtain participation and input from in-country central bank or switches or banking association in Ghana

. Expand country profiles to rest of “Group of 5”

. Expand country profiles to “Top 15” in sub-Saharan Africa GhIPSS - Ghana Interbank Payments and Settlement Systems

Clara Arthur, GM: Projects and Business Development at the Ghana Interbank Payments and Settlement Systems (GhIPSS) GhIPSS

The Ghana Interbank Payment and Settlement Systems Limited (GhIPSS) is a wholly owned subsidiary of the Bank of Ghana. It was incorporated in May 2007 with a mandate to implement and manage interoperable payment system infrastructures for banks and non bank financial institutions in Ghana.

In line with its mandate, GhIPSS has implemented and currently manages the National Switch and Biometric Smart Card Payment System, e-zwich and the Cheque Codeline Clearing (CCC) and Automated Clearing House (GACH) systems. The former switches and settles automated banking and payment transactions while the latter systems handle the electronic clearing of cheques and the processing and settlement of bulk debit and credit transfers between banks.

GhIPSS is committed to maintaining very high standards of excellence, reliability, integrity, and timeliness for all its infrastructure. These standards have enabled GhIPSS to attain ISO27001 certification within two years of commencement of business.

GhIPSS´ payment infrastructure is currently used by all banks in Ghana including Rural and Community Banks and Savings and Loans.