How to get your USSD code as a lender in Ghana

In Ghana, mobile phone usage is nearly universal, with a mobile penetration rate exceeding 113%, due to the widespread use of multiple SIM cards. 

This makes mobile devices a powerful tool for businesses, particularly lenders, looking to connect with potential customers. But, smartphone penetration remains uneven, especially in rural areas where many rely on basic phones. 

As of 2021, 83% of Ghanaians have access to mobile broadband, but mobile internet usage lags behind, particularly among people in low-income or rural regions. Only 40% of adults actively use mobile internet, with rural residents being 54% less likely to use it than their urban neighbors.

For lenders, this makes USSD codes invaluable. Unlike mobile apps, USSD does not require internet access, making it accessible even on basic feature phones. This is essential in a market where the cost of a smartphone is as high as 95% of the monthly salary for some, and not everyone uses mobile internet frequently.

In fact, mobile money services have already transformed financial access in Ghana, with millions using mobile platforms like MTN Mobile Money to conduct transactions.

USSD allows lenders to reach a broader segment of the population, ensuring that financial services are accessible to people with limited digital literacy and without the need for an internet connection.

Given how important financial inclusion is, especially in rural areas, having a USSD code is crucial for lenders to offer a wider audience easy access to loan services.

So, to get your USSD code as a lender in Ghana, follow these steps below:

Step 1: Understand the types of USSD codes

There are two primary types of USSD codes:

• Dedicated USSD Codes: Exclusive to a single business. For example, a bank might have its own USSD code like *123#.
• Shared USSD Codes: These are shared by multiple businesses. You might have a code like *123*5# for your business while another company uses *123*6#.

Choosing between these two depends on your business’s size and budget. Dedicated codes are more expensive but offer more flexibility, while shared codes are more affordable.

Step 2: Contact a USSD service provider

You’ll need to partner with USSD service providers like NALO Solutions or Africa’s Talking, who have existing relationships with telecom operators. These providers help you integrate the USSD into your system and handle the application on your behalf.

Providers offer API solutions, allowing your system to communicate directly with the mobile networks, which means you won’t need deep technical knowledge to set it up.

Step 3: Select a telecom partner

In Ghana, major telecom operators like MTN, Vodafone, and AirtelTigo offer USSD services. When applying, you’ll likely need to choose which networks you want your USSD code to be available on. Most businesses choose a cross-network USSD code to reach a broader audience​.

Step 4: Apply for a USSD Code

Once you’ve chosen your service provider, you can apply for your USSD code. For a dedicated code, the setup cost is higher, and there is typically a monthly maintenance fee. Shared codes are cheaper, but you’ll share the main code prefix with other businesses.

The typical setup costs are around GHC 2,100 to GHC 4,500 for a dedicated USSD code, with monthly maintenance fees ranging from GHC 3,500 to GHC 4,000. Shared codes generally have a free setup with GHC 900 for monthly fees.

It doesn’t simply end at applying for a USSD code

Depending on the code type (dedicated or shared), you’ll need to pay the necessary fees to both the service provider and telecom operator. Make sure you comply with the Ghanaian Communication Authority’s regulations, as they oversee such services in Ghana.

For example, lenders intending to offer USSD services must obtain a Value Added Service (VAS) license from the NCA. This lets you legally provide mobile-based services like USSD.

Also, keeping your customer’s information confidential is non-negotiable according to Ghana’s Data Protection Act.

Once your USSD code is approved and paid for, it will be integrated with your system by your service provider. They will also conduct tests to ensure the code works properly on all chosen networks before going live.

After launching, it’s crucial to monitor your USSD code performance. Service providers often offer real-time statistics and reporting tools so that you can track the number of sessions and user interactions. You may also need to pay session costs, which are charged based on the number of interactions through the USSD code.