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TECH TAX

Kenya and Nigeria are leading Africa’s push to start taxing Silicon Valley’s global tech giants

Reuters/Akintunde Akinleye
Nigeria is one African country that has started stepping up tax collection.
  • Yomi Kazeem
By Yomi Kazeem

Africa reporter

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.

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