Digitalisation and Revenue Mobilisation in Ghana

Abstract

Ghana’s domestic resource mobilisation has been low compared with other countries in sub-Saharan Africa (SSA). But the digitalisation of tax administration has allowed the Ghana Revenue Authority (GRA) to improve efficiency since 2000. This chapter examines how the introduction of digital tools in the Ghanaian tax collection system is driving improvements in revenue collection, the challenges being faced, how a well-designed stakeholder engagement is helping address these challenges, and how international stakeholders can support similar reforms. On the whole, digital technologies for tax collection triggered efficiency improvements in Ghana through cost and time savings. However, important infrastructure – including reliable intranet/internet services associated with the operations of these platforms – is weak, causing frustration for users. Further, staff familiarity with and competency in the use of these platforms is sometimes inadequate. A stakeholder dialogue, supported by the former UK Department for International Development (DFID), around these issues proved to be useful. The dialogue initiated by Ghanaian civil society prompted duty bearers to act in addressing some of these challenges. The experience in organising such dialogues in Ghana provides a potential model for other countries in Africa pursuing similar digitalisation reforms.