Does Ghana’s World Cup Team Request For Cash Payment Indicate A Larger African Problem With Electronic Banking?

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VENTURES AFRICA – The government of Ghana has flown $3 million into Brazil, just in time for the Black Stars’ crucial World Cup game against Portugal.
The Ghanaian players’ frustration since the tournament began is not limited to not having won a game, but also because they have not been paid their appearance fees.

It is not unusual for countries not to have paid player bonuses at this stage of the World Cup. FIFA pays national football associations at the end of the tournament, after which the countries disburse funds to players. The Ghanaian players however insisted on payment of their bonuses in cash, failing which they would boycott the team’s crucial game against Portugal. At a news conference arranged after the boycott threat became public, The Ghanian coach James Kwesi Appiah indicated that players requesting cash payments is not new in Ghana as their bonuses have always been paid in cash. The Cameroonian team, who should be back in Yaounde after an early exit from the tournament, also ensured they were paid in advance; they received their cash in Puma sports bags, before they left home.
Perhaps African players’ insistence on cash payments reflects a wider distrust or lack of understanding of the continent’s banking systems. A Fidelity Bank Ghana survey shows that 70 percent of the adult population in Ghana is unbanked, with many of them apparently ill-informed about how banking services work. Others, who have bank accounts but are not fully utilizing available services, cite poor delivery and ineffective technology as deterrents.
Reluctance of bank customers who have lost money to online transactions, to continue using such services, is understandable, and explains why many Africans would rather deal with cash. Bank customers across the continent regularly report electronic money transfers that do no reflect in their accounts. Additionally there are many cases in which money is transferred out of a customer account without cause. Reversal usually takes at least 24 hours, if not days. With inadequate customer service, customers can end up spending long hours in banks before their complaints are addressed. This in part defeats the purpose of electronic banking systems and discourages Africans from relying on electronic banking.
Win or lose against Portugal, it is certain that each of the Ghanaian players will leave Brazil $130,000 richer. What they should worry about now is how to get the money out of Brazil. Now that the public knows about the $3 million in cash, the team might need some extra security.