Numerous African governments are now recognizing digitization as a pivotal driver of development. Consequently, they are actively aiming to utilize this technology to expedite their countries' progress and enhance the welfare of their citizens.
On September 8, Ghana and the Republic of South Korea signed a $2.2 million grant to bolster domestic revenue collection. The agreement was signed in Accra by Mr. John Ampontuah Kumah, representing the Ghanaian government, and the Country Director of the Korea International Cooperation Agency (KOICA), Mr. Dong Hyun Lee.
The partnership aims to establish a comprehensive master plan to modernize Ghana's tax systems and integrate them into digital structures, including Mobile Money (MoMo) platforms. It will be executed by the Ministry of Finance and the Ghana Revenue Authority (GRA) and will focus on building the capacities of revenue and tax officials. In addition to capacity building, it will also involve consultations to expand the Value Added Tax and income tax bases using the MoMo transactions database and promote e-invoicing for increased transparency in cross-border commercial transactions.
The implementation of the master plan is expected to have a lasting positive impact on the livelihoods of Ghanaians and contribute to the long-term transformation of the national economy.
Speaking at the agreement signing ceremony, Mr. Kumah expressed confidence in the master plan's potential to broaden Ghana's tax base and boost domestic revenue mobilization. This partnership represents “the tangible efforts and collaboration between two nations to improve the lives of our citizens and contribute to the sustainable development of Ghana,” he said.
Mr. Dong Hyun Lee underscored the role of tax revenues in driving socio-economic development. In that regard, he emphasized the need for robust institutional frameworks to ensure the effective implementation of the master plan, which will be customized to meet Ghana’s unique requirements in collaboration between Korean and Ghanaian tax experts.
Hikmatu Bilali
