Mohammed-Anwar Sadat Adam, Country Director for Oxfam, has sounded the alarm on Africa’s tax systems, which he says are exacerbating inequality by disproportionately burdening low-income citizens while favoring the wealthy.
Speaking at the 7th College of Humanities International Research Conference at the University of Ghana, Adam criticized the continent’s reliance on regressive taxes like Value Added Tax (VAT), which hit the poor hardest.
“For every dollar African countries raise through income and profit taxes, they collect over two dollars through indirect taxes like VAT, which unfairly impact low-income households,” Adam stated.
He highlighted that Africa collects less wealth tax than any other region, with a 25% decline in wealth taxes contrasted by a 20% rise in social security charges and a 13% increase in income taxes. “Africa stands alone in failing to use property and wealth taxes to redistribute from the rich to the poor,” he added.
The two-day conference, themed “Bridging Inequalities in a Changing World,” convened West African researchers to discuss policy reforms for inclusive growth and sustainable resource management.
ALSO READ: US: BDO’S MONIKA LOVING: CFOS ARE KEY COLLABORATORS IN BUSINESS STRATEGY
Dr. Anthony Yaw Baah, Chairperson of the Ghana Statistical Service Board, emphasized job creation as critical for inclusive growth, noting that Ghana’s economic progress has left many youths unemployed. “Growth without jobs isn’t truly inclusive,” he said, echoing a former Ghanaian Vice President.
Professor Nana Aba Appiah Amfo, Vice Chancellor of the University of Ghana, underscored the conference’s role in fostering locally relevant solutions to global inequality challenges.
“Our research is both globally significant and contextually grounded,” she said, reaffirming the university’s commitment to inclusivity and transformative partnerships.