Taxing Big Tech in Africa: A Necessary Move, But Are We Killing Our Own Digital Growth?
Taxing Big Tech in Africa: A Necessary Move, But Are We Killing Our Own Digital Growth?
In recent years, African governments have been looking for ways to tax non-resident tech giants—companies like Amazon, Google, and Meta—who generate billions in revenue from African consumers but contribute little in taxes to the local economy. On the surface, this seems like a fair move. After all, if these companies are making money in our markets, shouldn’t they pay their fair share?
But here’s the problem: If not done carefully, these digital taxes could hurt the very businesses and digital ecosystems African governments are trying to grow.
Let’s break it down.