By Isaac Atunlute
Ghana is on the verge of a major policy reform that could reshape its digital future. Mounting pressure from telecom operators and digital-rights advocates has prompted the government to review the heavy tax burden stifling the telecommunications sector, a sector vital to the nation’s wider economic and social development.
At a recent public forum, Ghana’s minister of communications and digitalisation, Ursula Owusu-Ekuful, admitted that the current system of 39 separate taxes imposed on telecom operations is unsustainable. These levies include regulatory fees and site-licensing fees, infrastructure charges and import duties. Together, these have driven up operational costs for operators as well as consumers.
According to the minister, negotiations are underway with the finance ministry to streamline easing and potentially reduce these financial burdens. The goal is to create a more enabling environment for telecom companies to expand, innovate, and offer affordable services, especially to underserved rural consumers.
The timing couldn’t be more critical. Ghana has made considerable progress in developing digital infrastructure, but access remains inconsistent. Data prices are still high, and network coverage in many regions is patchy, hindering efforts to bridge the digital divide. Telecom operators have long argued that excessive taxation constrains the level of investment necessary to fill such gaps.
The stakes are high. In 2022 alone, the sector contributed over GHS 4.3 billion in taxes—roughly 7.7% of Ghana’s total government income. Beyond revenue, the sector also plays a crucial role in expanding access to online education, mobile banking, healthcare delivery, and small business growth across rural and urban areas.
Reducing tax pressure on operators could yield immediate benefits, including lower data costs, expanded network coverage to underserved regions, and greater incentives to invest in digital infrastructure. What’s more, it could encourage telcos to introduce special rates or data packages aimed specifically at rural users, aligning with Ghana’s broader digital inclusion goals.
Reform of telecom taxation isn’t just a relief for business but also for public interest. Lowering the cost burden on telecoms has the potential to directly save consumers money, improve mobile coverage, and accelerate the rollout of broadband. For online learning students, farmers with access to weather or market information, or mobile money users, the reforms can be transformative.
While the review is still in progress, similar approaches in other African nations have shown that telecom tax reform can deliver quick, scalable wins. When governments signal intent, it opens the door for operators to plan network expansion, enter underserved markets, and introduce lower-cost services. Ghana’s move already signals to investors and stakeholders that change is underway.
The government further hinted at wider digital policy reforms. Minister Owusu-Ekuful said that boosting broadband access and digital literacy remains a priority. However, she emphasised that such goals cannot be realised without addressing the root challenge of telecom over-taxation.
Previous calls for reform have often stalled, but the rise of remote work and digital education in the wake of the COVID-19 pandemic has brought new urgency to the discussion.
If Ghana follows through with meaningful reform, it could unlock a wave of private-sector investment, expand internet coverage, and bring down data prices, much to the benefit of the economy as well as the citizens.
It isn’t just about cutting taxes. It’s about rethinking national priorities in the digital age. By reducing the burden on telecommunications operators and prioritising access for all, Ghana could be paving the way for a more connected and a more equitable future.
Ghana is considering significant policy reforms to alleviate heavy taxes on its telecom sector following pressure from operators and digital-rights advocates. Communications Minister Ursula Owusu-Ekuful acknowledges the unsustainable nature of the 39 taxes imposed on telecom operations, which raise operational costs for both service providers and consumers. Negotiations are ongoing to streamline and reduce these financial burdens with the finance ministry, aiming to enable telecom companies to expand, innovate, and provide affordable services, particularly to underserved rural areas.
In 2022, the sector contributed GHS 4.3 billion in taxes, comprising 7.7% of government income, while playing a vital role in spreading access to education, banking, healthcare, and small business growth. Tax reform would likely lower data costs, improve network coverage, and incentivize investments in digital infrastructure. These changes would align with Ghana's digital inclusion goals, benefiting various demographic groups, including students, farmers, and mobile banking users.
The move is part of broader digital policy reforms to boost broadband access and digital literacy. The COVID-19 pandemic has heightened the urgency for reform, and other African countries' experiences suggest that such changes could quickly drive investments, expand internet coverage, and reduce costs, indicating a bright future for Ghana's digital landscape.
