MultiChoice Ghana, the country's leading pay-television platform operating DSTV and GoTV, has attributed a hike in its subscription rates to taxes, inflation, and the depreciation of the Ghanaian cedi. The company increased subscription fees by 19% on February 15, 2024.
In an interview with Graphic Online, the Managing Director of MultiChoice Ghana, Mr. Alex Okyere, blamed external factors such as high taxes in Ghana and the exchange rate for the increase. He added that the company has consistently made efforts to keep increases below the inflation rate to lessen the burden on customers.
"There is a difference in price structure between Ghana and Nigeria," Mr. Okyere said. "In Ghana, we have much higher taxes than Nigeria, which significantly impacts the cost. The exchange rate between the two countries is another factor beyond our control. We don't set taxes or control the exchange rate. We try to keep our increase below inflation to cushion customers, but these two factors are unfortunately outside of our control, and there's little we can do about them."
The Head of Corporate Affairs of MultiChoice Ghana, Nii Amarh Dagadu, echoed the impact of taxes and the depreciation of the Ghanaian cedi on subscription rates. He explained that in dollar terms, there is a minimal difference in subscription rates across the continent.
"There are a number of factors that affect pricing," Mr. Dagadu said. "One is the cost of operations in each market. Another is the stability of the local currency.
Taxes also play a role. In Ghana, you are paying almost 29 percent in tax, while Nigeria charges 7 percent, South Africa charges 9 percent, and there are no taxes in some countries. Our pricing is the same in dollars across all 54 countries we operate in, but variations in taxes lead to the differences you see. The tough economic situation in Ghana is another reason for the recent increase."
The company also warned potential customers to avoid the illegal practice of purchasing and subscribing to DSTV decoders from Nigeria, with legal consequences for those found culpable.
