Internet use across Africa skyrocketed from 2.1% in 2005 to 24% by 2018—the highest growth rate globally.
That growth has seen global tech companies from Facebook and Google to Uber and Netflix expand their digital services across the continent, not just to capture the still small current market but also to strategically position themselves bearing in mind Africa’s young population and expected population boom.
But, like elsewhere, African governments are increasingly looking to develop a framework that allows them to generate tax revenue from these very popular digital services when used within their territories. The upside is obvious: collecting “digital taxes” will help African countries on their quest to grow their local tax bases which are typically undercut by large and un-captured informal sectors.
*The views of the above article are those of the author and do not necessarily reflect the views of Africa Speaks 4 Africa or its editorial team.