Africa: Urgent Tax Reform – 3 Bold Steps Needed

💡Historical ContextKey Topics: lagos-land-use-charge, imf-revenue-mobilization, digital-property-mappingGhana's property tax struggles echo a pattern seen in Lagos, Nigeria, which in 2018 overhauled its land-use charge system and saw property-related revenue jump by over 60 percent within two years. That reform relied on digital property mapping and centralized billing — tools Ghana has yet to deploy at scale. Across sub-Saharan Africa, the IMF estimates that domestic revenue mobilization could unlock an additional 3 to 5 percent of GDP if property and informal-sector taxation were modernized. The political sensitivity of taxing informal traders, who often lack formal registration, has stalled similar reforms in Kenya, Senegal, and Tanzania over the past decade. Ghana's outcome will likely determine whether other West African nations attempt comparable reforms or continue relying on donor financing. Africa faces a deepening fiscal crisis as Ghanaian economist Professor Peter Quartey urged the government on July 23, 2026, to unlock property taxes and informal-sector revenue, warning that Ghana's revenue-to-GDP ratio trails West African peers.Professor Quartey identified high-value urban properties generating negligible tax income as an immediate revenue opportunity.Millions of informal workers across the continent contribute economic activity that far outweighs their tax payments.Ghana's revenue-to-GDP gap with regional neighbors undermines public investment in health, infrastructure, and education.Why Africa Tax Reform Matters NowThe call from Ghana's former ISSER director is not an isolated complaint — it reflects a structural problem spanning the continent. Governments across Africa remain heavily dependent on foreign aid and sovereign debt to fund basic services, a model that grows riskier as global lending conditions tighten.Professor Quartey told TV3 NewsCentral that broadening the tax base is the only sustainable path forward, rather than squeezing businesses already in compliance. "There are many beautiful, high-value properties across the country, but I am not sure we have mastered the process of taxing them," he said.The Revenue Gap Across AfricaBeyond property, the economist pointed to structural reform as the key to bringing millions of informal workers into the tax net. Piecemeal enforcement campaigns have repeatedly failed in countries like Kenya, Senegal, and Tanzania over the past decade.Digital property registries, simplified informal-sector levies, and stronger local government capacity are all on the table. According to the International Monetary Fund's Ghana page, fiscal consolidation remains a central policy challenge through 2026.What Comes Next for Africa's Fiscal FutureGhana's trajectory will likely serve as a test case for whether West African nations can close their revenue gaps without triggering public backlash. The political will to tax informal traders — who often lack formal registration — has historically been the sticking point.Professor Quartey acknowledged that government efforts are underway but called the process a critical "work in progress" that demands administrative modernization alongside political courage.Should African governments prioritize taxing property and the informal economy over introducing new levies on formal businesses? Share your perspective below. #InternationalNews #GM247News Prepared with AI assistance; Reviewed by the GM247 Editorial Desk.