A leading member of the New Patriotic Party, NPP and member of the government communications team, Palgrave Boakye Danquah has noted that Electronic services, particularly mobile money, have made significant progress in Ghana in terms of boosting access to digital financial services and closing the financial inclusion gap.
According to him, By November 2021, Ghana had 47.3 million registered users, 18.4 active users, and mobile money transactions of over GHs 80 billion (US$13 billion). It accounts for almost two-thirds of all transactions, compared to cash and checks. The Ghanaian government suggested an e-levy on mobile money on November 7th.
This, he said will aid in the increase of government income, the development of infrastructure, entrepreneurship, and the advancement of digitalization.
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The goal of this investigation was to see how attainable these possibilities are. According to the findings, e-levy does not automate these opportunities. Furthermore, the strategy’s effectiveness will be hampered by underlying historical patterns of inadequate digital data generation, storage, retrieval, and security; weak government capability; a lack of accountable and transparent administration; and bad policy implementation. The report suggests, first and foremost, increased government capacity, widespread political commitment to digitization, and a well-targeted employment strategy that favours digitalization. These will guarantee the required prospects and make e-levy more accepting.
The foundation for increased economic development and growth is a solid and effective tax system (Appiah, 2013). It is at the heart of economic transformation, which increases the quality and stability of growth and, as a result, is critical to long-term poverty reduction. Insufficient revenue mobilization, on the other hand, continues to be a key concern for Ghana’s revenue collecting authorities and organizations. Over the years, revenue has been embarrassingly low. Between 2003 and 2004, overall income collection climbed by 31.9 percent, 22.1 percent in 2004 and 2005, 15.22% between 2005 and 2006, and 28.24 percent between 2006 and 2007. As a result, the country’s overall yearly revenue collection is growing at a slower pace (Sumaila, et al, 2014. p.2). The Fund has long been concerned with improving income collection in poor nations, and its recommendations have had a significant impact (Cottarelli, 2011).
The COVIID-19 has aided in the acceleration of online trade and digitalization in Africa, which has helped to reduce the need for physical stores. Payments for products and services, as well as transfers and remittances both locally and internationally, have shifted to digital platforms. By two-thirds, the transaction has eclipsed cash and check as the preferred method of performing business (Owusu, 2022). According to data from the Bank of Ghana (BoG) and other sources, the value of digital transactions in Ghana increased by over 120% in 2021, compared to 44% in the same time between February 2019 and February 2020. By 2025, the global digital economy will have grown from $11.5 trillion in 2016 to over $23 trillion (ibid).
The Services sector contributed 51.9 percent of Ghana’s GDP in the first half of 2021, with the bulk coming from the Information and Communication sub-sector, creating a strong argument for the government to evaluate that sector in its effort to produce more money. The GoG is imposing a 1.75% e-levy to earn significant money, pay contractors, promote entrepreneurship and cyber security, and in increasing digitization, among other things. While the possibilities are not certain, this research aims to determine how feasible they are.
2.0 Revenue Mobilization in Ghana
The significance of public income to emerging nations, as Kaldor (1964) pointed out, cannot be overstated if they are to accomplish their goals of quicker economic advancement (as cited in Demuyakor, 2021). Revenue collection is still required for local government goals and programs to be implemented (Akorsu, 2015, p. 2). The Local Government Act 462 of 1993 entitles and emboldens district assemblies to collect revenue in the form of fees and taxes, such as rates, rents, royalties, and registration, as well as licensing fees and all other revenues specified in the Act’s sixth schedule (Local Government Act, Act 462,1993) to help fund initiatives in their numerous lines of influence (Adu-gyamfi, 2014, p. 97). The Local Government Act, (1993) Act 462, mandates the Assemblies to produce sufficient money locally to complement expenditures from the national government to be successful partners in economic growth. The Local Assemblies have been given the legal authority to generate internal income as a result of these legislative aids. The law provisions also provide the Metropolitan, Municipal and District Assemblies (MMDAs) with the authority city to create suitable revenue mobilization strategies and put in place safeguards against non-compliance and income leakage. Increased funding of critical public goods required to meet the 2030 Agenda will result from effective domestic resource mobilization (UNU-WIDER, nd) Property rates, licenses, market tolls, and lorry park fees were the primary sources of internal revenues identified, with property rates contributing the most to the Assembly’s Internally Generated Funds (IGF) (Adu-gyamfi, 2014, p. 97).
2.1 The State of Revenue Mobilization in Ghana
Prio 1983, Ghana’s fiscal framework had been attributed to low revenue (Appiah, 2013, p. ii). The Cape Coast Municipal Assembly (CCMA), ( Akorsu,2015.p. 12).WA, (Abdul-Wahab et al., 2019), Accra Metropolitan Assembly (AMA), Upper Denkyira East Municipal Assembly (Adu-Gyamfi, 2014) among others was unable to satisfy their socio-economic and political commitments to users of public goods and services in the municipality because it is challenged to implement sustainable revenue mobilization procedures and programs. A crucial element in bad budget design and subsequent revenue mobilization is the absence of a dependable database. Insufficient revenue mobilization continues to be a problem for all revenue collecting agencies and organizations in Ghana, according to Sumaila et al. (2014, p.2). Over the ages, Ghana’s revenue mobilization has been abhorrently poor. From 2003 and 2004, overall income collection climbed by 31.9 percent, 22.1 percent between 2004 and 2005, 15.22% between 2005 and 2006, and 28.24 percent between 2006 and 2007. This means that the nations overall yearly income collection is decreasing (Sumaila et al., 2014).
2.2 Budget deficit
Wagner’s law states that government spending is a natural result of economic development (Demirbas, 1999, as cited in Appiah, 2013.p.2). In order economy, successive administrations have increased government spending but have been unable to balance it with revenue collection via taxes, resulting in massive budget deficits. Ghana’s tax collection as a percentage of GDP was at 13.9 percent in 2008, lower than the SSA average of 15.7 percent, according to World Bank data (Appiah, 2013, p. 4). Budget Deficit– when costs exceed receipts, it indicates a nation’s monetary soundness. When the state refers to expenditure rather than enterprises or people, it is referred to as a budget deficit. The nation has routinely spent more money than it has been able to earn over the previous decade. These shortfalls have frequently been funded with foreign assistance, highlighting the country’s reliance on it. The major challenge has been how to effectively and economically generate tax income using tax instruments that are least destructive to the poor, while the government has to spend more on areas including health, infrastructure, and education. As a result, revamping the tax system to guarantee efficiency will be necessary (Appiah, 2013, p. 1).
Tax Reforms are one of the most common policy instruments employed in Ghana to alleviate the deficit (Sumaila, et al., 2014). The e-levy is the most recent reform.
2.3 Taxation
Persons, corporations, and organizations make legal, forced, unrequited contributions to the state as taxes, according to the World Bank (1999). In Ghana, there are four taxations: income and property taxes, domestic goods and services taxes, international trade taxes, and value-added tax (VAT). Before the implementation of the Value Added Tax (VAT) in 1999, taxes on foreign commerce accounted for the majority of Ghana’s tax revenue, second by taxes on domestic products and services, and finally taxes on income and property. For the year 2011, total tax revenue was 17.5 percent of GDP (GDP) (Appiah, 2013). Tax structures are critical for mobilizing assets to fund public spending, boosting investment spending, triggering savings in particular kinds to facilitate channelling savings into investment, guiding investment into desirable activities, ensuring higher fairness in income distribution and adjusting externalities, and causing the private sector to function in streamlined targets (Appiah, 2013, Cottarelli, 2011). Nevertheless, during the past three decades, the concept that the tax system must focus on increasing revenue has acquired widespread favour. According to the IMF, taxes causes inefficiencies, and the primary goal of tax policy is to establish a system that earns enough income to satisfy a government’s revenue objective while reducing anomalies (Mackenzie et al, 1997). The e-levy is the current tax mechanism that is gaining traction at the SSA.
Stakeholders in the sector have had various responses to this. The minority in Parliament declared zero tolerance for the e-levy, arguing that it aims to steal money from a larger percentage of Ghanaians over time. Among the countries in the area, Ghana has the highest rate compared to either Kenya, Uganda, Cameroon, or Tanzania. This might have a severe influence on digital payments and Ghana’s digitalization efforts. Others suggest that diversifying tax income streams is preferable to focusing on a single large revenue generator from e-transactions.
3.0 E-levy, Digitization & E-Governance
The Electronic Transaction Levy (also known as the E-levy) is a tax levied on transactions conducted through electronic or digital platforms. It is also a part of e-governance, which is the use of ICTs by the government to enhance internal systems (back-office operations) and externally oriented services (frontline operations) to enable quick, translucent, responsible, efficient, and effective methods of making business with the public, businesses, and other sectors.
The Government of Ghana (GoG) launched its digital governance (d-governance) plan in 2005, and the country has already still been one of the bloc’s speediest internet and telecoms markets. As a result, stifling e-levy is a death sentence for digitalization. One of the most recent digital governance methods introduced by the GoG is the Information and Communication Technology for Accelerated Development (ICT4AD) Policy 2017. The plan aims at identifying potential digital possibilities and tactics, as well as putting in place a strategy to enable the country to establish itself as a major d-governance centre via ICT innovation by 2023 in Sub-Saharan Africa (Demuyakor, 2021; World Bank Group, 2016). To achieve these noble goals, the Government of Ghana (GoG) implemented a d-governance framework in 2017 such as the issuing of a digital national identification card, e-justice system, an e-smart driver’s license, e-property addressing system, mobile money interoperability mechanism, paper-free port structure, Ghana Post GPS, e-smart driver’s license, electronic renewal of the National Health Insurance Scheme (NHIS), e-Immigration system (Demuyakor, 2021, pp. 42–43). As a consequence, Ghana has become one of the continent’s fastest-growing nations, with hallmark efforts in government-to-citizens digital platforms (Appiah, 2013; Demuyakor, 2021, p. 42; Adu-gyamfi, 2014; Sumaila et al., 2014).
The GoG aspires to share a shared vision of a virtual world that enhances residents’ life quality, supports the private sector’s growth, and helps Africa’s effort to achieve the Sustainable Development Goals (SDGs) (Owusu, 2022).
3.1 E-Levy in Ghana
COVIID-19 has aided in the worldwide acceleration of internet commerce and digitalization. According to Owusu (2022), 61 % of a sample of African companies questioned indicated a growth in digital sales since the crisis began, with more than 60% of micro-sized businesses seeing online selling as a major new possibility in response to the problems. By 2025, the global digital economy will have grown from $11.5 trillion in 2016 to over $23 trillion . Travel and transportation – 234.5 million dollars, Fashion and beauty – 144.2, Electricals and Physical Media – 121.4, Food and personal care – 53.77, Furniture and appliance s – 74.41, Toys, DIY and Hobbies – 58.84, Digital Music – 1.60, and so on (ibid).
On November 17th, 2021, the Minister of Finance declared the implementation of a 1.75 percent “E-Levy” on electronic transactions exceeding GHs 100 (US$16) per day (to ensure that vulnerable groups can continue to use digital transactions without incurring additional costs), which will take effect on February 1st, 2022. Mobile money payments, bank transfers, merchant payments, and inbound remittances will all be subject to the fee (MoF 2022 Budget Highlights). Except for inbound remittances, when the fee will be charged by the receiver, all costs will be payable by the sender. According to the Finance Minister, overall digital transactions in Ghana are expected to exceed GHC 500 billion (US$81 billion) in 2020, up from GHC 78 billion (US$12.5 billion) in 2016. As a consequence, the government expects to earn approximately GHC 6.96 billion (US$1.1 billion) in tax revenue in 2022, and about GHC 26.90 billion (US$4.5 billion) from 2023 to 2025, once the electronic transaction levy is implemented to assist extend the tax net and bring in the informal sector (PwC 2022 Budget Digest).
The planned e-levy tax in Ghana is based on the country’s success with mobile money over the last several years. In Ghana, mobile money has made significant progress in expanding access to digital financial services and closing the financial inclusion gap. By November 2021, Ghana had 47.3 million registered users, 18.4 active users, and mobile money transactions of over GHC 80 billion (US$13 billion). It’s no coincidence that Ghana is now one of Africa’s fastest-growing mobile money markets, with active accounts more than doubling from 2012 to 2017 (Oni. & Gasparri, 2022),.
3.2 Prospects of E-Levy – Arguments For
3.2.1 Increasing Tax Revenues
The policy is critical to obtain more revenue to cover government deficits. According to Ken Ofori-Atta, the e-levy is estimated to enhance tax income by GHs 6.9 billion (US$1.1 billion) for the government, assisting in the reduction of the budget deficit. Because of the enormous informal sector in Ghana, regime after regime has failed to adopt a comprehensive tax framework (Demuyakor, 2021, p. 42). Today, mobile money has offered a platform for connecting the informal sector to formal financial services, as well as a mechanism for implementing a tax system that covers almost all of the country’s adult inhabitants (Oni. & Gasparri, 2022). Mobile money has made significant progress in boosting access to digital financial services and closing the financial inclusion gap in Ghana. Ghana has 47.3 million registered users, 18.4 active users, and over GHC 80 billion (US$13 billion) in momo transactions by November 2021. By almost two-thirds, digital transactions have exceeded both cash and check transactions. As a result, the e-levy allows for more workers to be assigned. The existing taxes system places just approximately 8% of the population as taxpayers, but introducing an e-levy implies that number will rise.
Critics contend that the e-levy is not an end in itself, but rather a possible source (Fankhauser & Martin, 2010) that might fail. Other sources must be considered by the government rather than the successful Momo system. Nonetheless, it broadens people’ e-participation and raises income chances. According to the African Continental Free Trade Area (AfCFTA) specialist, the e-levy policy is an innovative means of expanding the tax net. It is perfect since Ghanaian trade has always been informal. This would have no effect on digital commerce at the continental level since the transaction is internal and not done at the border.” According to Louis Yaw Afful, Executive Director of the AfCFTA Policy Network (APN), this action coincides with the goal of member states increasing domestically produced income as nations progress toward 90 percent tariff liberalization. Many AfCFTA nations would follow suit, but led by international best practice since existing research demonstrated Kenya’s infectious e-levy system while Uganda suffers from hers. (Demuyakor, 2021, p. 42; Norvan Report, 2021).
3.2.2 Infrastructure Development
The e-levy is also intended to help cover the vast infrastructure demands that are now unfunded (IMF, 2010). According to John Kumah, the money raised by the fee would be utilized to pay contractors in Ghana. Formal paraphrase The government earned GHC 78 million per year from the repealed road tolls, which was inadequate to pay for road construction. “The e-levy will earn GHC 6.9 billion in 2022, giving the government adequate room to pay contractors when they increase their certifications.” According to the budget, up to 0.25 percentage points of the 1.5 percent e-transaction levy (i.e. 16.7 percent of the levy’s yield) is used yearly to endorse road infrastructure investment, and 10% of the 0.25 percentage points (i.e. 1.67 percent of the levy’s yield) should be devoted to public transit advancement, such as the acquisition of buses (MoF 2022 Budget).
Nevertheless, raising sufficient finances for a project does not always imply that the project will be established. Undiscussed government capability might result in the selection of inferior projects. The generation of sufficient revenues from the e-levy does not justify the extortions, and corruption that drains necessary public finances is reduced. Project abandonment has been the norm throughout the years. The government’s digitalized procurement system is based on favouritism. Contracts are often granted to cronies at exorbitant rates (Menzo, 2020). In short, increased cash does little to automate progress when leadership is ineffectively individualized.
3.2.3 Enhancing Entrepreneurship
Aside from road building, the potential cash collected will be utilized to support the ‘YouStart’ Initiative, expand Ghana’s digital space, and especially the development of basic education in the nation, among other things. For example, the YouStart project would be a vehicle to help young entrepreneurs get cash, technical skills, training, and mentorship to allow them to establish their firms, which would go a long way toward addressing the nation’s youth employment problem.
Nonetheless, although this sounds admirable, history demonstrates that the one-district, one-factory scheme also sounded good but became inefficient in practice. According to the EMMA survey, cronyism dominated the awarding of government assistance to industries. As part of the environment encouraging the one-district-one factor strategy, old ineffective enterprises were able to gain tax breaks and other government assistance. As a result, corporations squander resources since they are mainly inefficient (Eshun, 2019).
The results from Nation Builders Corps (NABCO) are likewise questionable (Sam, 2021). The enormous costs involved in obtaining and compensating NABCO employees, on the other hand, are unarguable. It mostly represents buried expenses rather than production costs. The overburdened governmental offices are embracing NABCO staff even more.
It is also past time to handle phantom names and excess government personnel that drain the public money. The government has now turned the civil service into a dumping site, according to certain key officials in the Ghana Public Service. Instead, ineffectual programs are advocated for educational changes aimed at industrial growth.
3.2.4 Enhancing Digitalization – e-services – cyber security
The United Nations E-Government Survey (2018), assert, Ghana is one of the African nations with the most public e-services. Ghana ranked 101st in the United Nations E-Government Survey’s Electronic Governance Development Index (EGDI) (2018). The study findings showed how Ghana fared in terms of the Human Capital Index (HCI), communications infrastructure, and online services (Demuyakor, 2021, p. 43). According to the Global e-government Development Index, UN EGDI (2018), Ghana has excellent potential, increasing from 120th in 2016 to 101st in 2018. (Internet World Statistics -IWS, 2019 (as cited in Demuyakor, 2021)). According to Owusu (2022), the E-levy entails more investment in digital infrastructure. Ghana has been unduly ambitious in terms of digital governance, internet access for its people, and becoming one of the first African countries to implement e-procurement and other digital services (Demuyakor, 2021, p. 43). These significant increases in Ghana’s worldwide digital governance rating demonstrate the country’s commitment to advancing e-government via Ghana’s Ministry of Communication (Agboh, 2018).
Nonetheless, internet politics is one of the most hotly debated topics in the world today. Other industrialized countries have increasingly taken over the United States of America’s monopoly in providing internet services to the rest of the globe (O’Hara & Hall, 2018). Some economists have requested that the measure be withdrawn, fearing that it would damage the government’s digitization efforts and plans to establish the digital currency (Demuyakor, 2021)
3.3 Arguments Against the Prospects
There are several objections against the implementation. However, this research focuses on four of the most important issues for policymakers.
3.3.1 Availability and Security of Data
In Ghana, data generation, storage, and security continue to be issued. There are concerns highlighted, such as who stores the data and why it is kept (World Bank Group, 2016). Critics argue that the e-levy amounts to triple taxation. Because systems are not strengthened to distinguish between domestic and cosmetic transactions, repeated taxation is inevitable. Furthermore, one of the key societal problems of digital government implementation in Ghana is the absence of citizen information protection. It has been difficult for the government to guarantee that people’ data and information are securely safeguarded, as well as to increase the usage of digital governance and e-government services (World Bank Group, 2016). Protection refers to how information resources and internet infrastructure are safeguarded from potential risks such as hackers, cyber-attacks, mistakes, and fraud. As a result, a sizable portion of the informal sector likewise rejects digital services. These have not been addressed even though the e-levy is set to be cybercriminals.
Cybercriminals are constantly outwitting telcos and duping mobile money consumers. According to Margetts and Dunleavy (2013), the majority of commonly used servers and domains are registered under American firms). It becomes difficult for the government to base its income on an insecure system, and the data gathered further jeopardizes the security of both people and the state. Addressing the difficulties with bad data generation and utilization is critical; otherwise, the government would find itself in a cycle of deficits.
3.3.2 Poor Government Capacity
Furthermore, launching an E-levy does not guarantee success; instead, professional government personnel are required to make the E-levy a success. However, old methods that controlled a total of approximately 8% of residents who paid taxes have historically been troublesome. Controlled expenditure is also essential. According to Akorsu (2015, p. 3), the CCMA has not devised long-term initiatives to enhance its income mobilization performance. Despite legislative grant arrangements and other national government financial assistance, the MMDAs, according to Aryee (2003), are unable to produce adequate money at the local level for development. They rely significantly on the District Assemblies Common Fund (DACF) that the central government has entrusted to them to assist their development programs. Furthermore, tax changes are a prominent sort of policy tool in Ghana. Throughout the previous decade, the nation has routinely spent more money than it has earned. These deficits are often covered by unreliable foreign handouts, emphasizing the country’s reliance on help. According to a recent e-levy consultancy in Koforidua, e-levy will result in e-commerce infrastructure. However, constructing the structures before implementing the policy will be a beneficial technique. ineffective governance Human resource capability has a significant negative influence on a country’s per capita growth. Poor economic development has been connected to a lack of regulatory quality, inefficient governance, and a lack of control over corruption (Demuyakor, 2021).
3.3.3 Poor Accountability and Transparency
Access to information and transparency is another barrier to realizing the prospects of the e-levy and digital governance services in Ghana (Demuyakor, 2021, pp. 50–51). This includes the ability to obtain government documents, improve the performance of government programs and services, and the ability of locals provide input to policymakers. Digital governance necessitates openness and accountability from the government and corporate entities tasked with preserving the populace. However, a considerable proportion of the population continues to lack access to basic digital services (UNDP, 2018 (as cited in Demuyakor, 2021, pp. 50–51)), and effective governance remains elusive. Bad governance is centred on not just the corruptness of a system, but also a lack of transparency and accountability, arbitrary policymaking, and deception of people who are governed.
Others believe that the e-levy has just concentrated corruption. Road toll employees who occasionally sold fake tickets and exploited customers have been dismissed, and subsequently, tax officials who operate traditionally on the market field and sometimes use extortion to provide exemptions will also be sidelined. Managers of the e-levy are therefore good targets for a bribe to avoid the levy burden. Worse still, care must be taken because if governments are unable to assure purposeful accountability of the public purse and real awarding of contracts, among other things, taxed residents may turn to unscrupulous tactics to avoid e-taxes. For example, the ECG’s faulty e-system has prompted individuals to invent modern techniques of evading ECG fees online.
3.3.4. Implementation of Policies
Most SSA governments continue to struggle with policy implementation, monitoring, and assessment. Administrations that ultimately foster opportunities for rent-seeking and abusive behaviour can implement the adherence required to expand the tax base, including through risk management (allocating resources where the risks to revenue are greatest) and taxpayer segmentation (tailoring intervention and services to the distinct challenges posed by different groups, beginning with a large taxpayer office)—there is much work to be done here. At best, the area is known for strong policy but poor execution (Cottarelli. 2011. p. 4). Initiatives are stifled by ineffective population involvement and participation. This justifies the natives’ non-complementary effort (UNDP, 2018). Because of the issue of unawareness, the reaction to services will always be below anticipated. The so-called show effect’ difficulty is revealed on social media.
The digital divide in Ghana also leads to low levels of d-governance adoption since individuals having internet connections may not be able to benefit from the services given via the platform (Demuyakor, 2021; Kyereme & Kaur, 2019; Mukamurenzi et al., 2019). Poor laws, institutional bottlenecks, and maladministration are just a few of the issues that must be addressed for d-governance to be easily implemented. This study’s findings on institutional impediments are mirrored in bureaucratic systems (Kyereme & Kaur, 2019). The high cost of d-governance implementation, as well as installation, upkeep of hardware, and network services, is also a significant problem (Adu-gyamfi, 2014, p. 116; Demuyakor, 2021, pp. 50–51).
3.4 Making E-Levy Work in Ghana
In reality, Ghana cannot go backwards because of flaws, no matter how deep they are; instead, we must focus on making the e-levy system function. According to the United Nations (2018), digital technology is a game-changer for every area, although most sections have yet to reap the advantages of digital technology. According to the 2018 United Nations report on digital governance and e-government, Africa lags behind other countries throughout the globe (Demuyakor, 2021, pp. 50–51).
3.4.1 Enhancing Government Capacity
Ghana and other African nations must work hard to enhance their economic development and governance standards. Collaboration with foreign nations and intra-government groups can accelerate digital transformation while also identifying novel methods to boost the economy and provide employment opportunities for individuals. The capacity of governments to adapt to the changing nature of technology as a means of fostering digital transformation across all sectors of society will greatly influence their degree of competitiveness (World Economic Forum, 2017). ). The government must be chastised for failing to confront corruption, bad project selection, and self-deception in the name of increasing employment. Investment in technical and vocational education, as well as improvements to the One-District-One factory. The possibility of a reaction against Owusu (2022) determines success, concerning the success of the CSM policy. The conflict in Uganda, Kenya, and Cameroon are equally genuine. The policy is sound, but the prospects seem to be fictitious. Skilled tax education is essential to elicit political will — to gain local trust to strengthen government capability (Cottarelli, 2011.p. 4).
Priority should also be given to taxpayer education on the reasoning, methods, duties, and responsibilities associated with the tax being paid for an effective e-levy program. The ability to relate revenue collections to improved service delivery and a more informed taxpayer base will boost compliance. Mobilizing the community via improved participatory budgeting and civic involvement will engage residents while also allowing for increased revenue collection. Positive incentives, punishments, and penalties must be used in collection and enforcement (Adu-Gyamfi, 2014, p.121). A healthy balance sheet is also necessary for reducing expenditure to reach budget targets.
3.4.2 Addressing Data Scarcity And Cyber Fraud
Data here does not refer to the internet but to the database of the populations. Creating effective, appropriate digital data requires full assistance from both the government and the private sector. As a result, political will is essential. Locals’ awareness of cyber security implies they will help combat fraud. To provide citizen-centric services, all African governments adopt creative solutions rather than conventional approaches. Cloud computing is mentioned as one of the strategies for efficient data collecting and analysis (World Bank report, 2019, p.12). In Morocco, for example, a service known as e-Notary digitizes documents (Nyirenda-Jere & Biru, 2015; World Bank Group, 2019). Cloud computing will be able to help governments streamline their procedures and service delivery.
This has provided new possibilities that did not previously exist. Data is the fourth industrial revolution’s equivalent of cotton in the first. More people must be empowered to put useful data within their grasp as more governments aim to decentralize their activities to boost responsiveness. The democratization of information will help to ensure that there is a fair playing field. The availability of phones has already guaranteed that the majority of people can actively engage in politics and communicate with municipalities (Demuyakor, 2021).
3.3.3 Enhancing Employment
While examining the one district one factory model, Eshun (2019, p. 160) supports technical vocational education and training (TVET), job-focused development, the extension of social benefits, and the faith in free enterprise. In addition, the GoG must enhance the creation of skills in the fields of science, technology, engineering, and mathematics (STEM). Investing in skill education should not be an option, but rather a need as the state strives to move from a labour-based to a knowledge-based economy. Future skill and employment policies and strategies will avoid measures that enhance lives, increase wealth, and sustain social inclusion (World Bank Group, 2019). Data is increasingly has become the digital era’s new currency.
While empowering a locally trained manpower, the authorities must also ensure that cybersecurity and data privacy legislation is up to date. The people should have access to bandwidth, and a culture of innovation should be promoted to support grassroots growth (UNDP, 2018). African governments must create an environment that encourages the development of new business models and investments. Microsoft is assisting governments in streamlining regulations and assuring the ease of doing business using cloud computing. An initiative like “African open” might assist entrepreneurs in quickly finding solutions to a variety of problems, time restrictions, and costs they’ve experienced. As a consequence of the digital revolution, the income gap is expected to increase much further. This is because electronic occupations have made the working class unemployed.
If we have two heads, one striving for the progressive digital age and the other conserving the traditional age (Akorsu, 2015, pp. 12–13), we will have two heads, one aiming for the progressive digital age and the other preserving the traditional age (Akorsu, 2015, pp. 12–13).
3.3.4. Effective Implementation that fosters Accountable And Transparent Governance
The success of the d-governance plan is largely contingent on the efforts that the government will make to ensure that the procedures function smoothly. It has a clear legal framework that will serve as a guide for digital governance implementation. Despite Ghana’s efforts to establish the necessary legislation, implementation has been difficult owing to a lack of political commitment. To provide a fair cost/benefit ratio, the expenses of implementing the e-levy should be less than the accompanying benefits. Efforts should also be made to lessen the extent of the digital divide (Mukamurenzi et al., 2019; Demuyakor, 2021, p. 51). While implementing a progressive approach that assures policy adaption. Governance must be open and responsible to stakeholders. removing all obstacles and facilitating public access to information, as well as facilitating processes, laws, and regulations that safeguard those people, and thus reflects on the nation’s development Legal accountability refers to the capacity of public officials to be held accountable for actions that violate established norms and regulations. Incumbents must demonstrate internal democracy in their parties, and governance must not be “personalized,” but rather founded on inclusivity, with everyone serving as a watchman to improve grassroots monitoring. Core management also requires strategies that raise moral norms.
4.0 Conclusion and Recommendation
COVID-19 has accelerated e-commerce. Traditional shopping pales in comparison to internet purchases. As a result, on November 17th, the GoG announced the implementation of an e-levy of 1.75 per cent. This is in addition to the carriers’ 2% transaction fees. As a result, charges on Momo, in particular, will be 3.75 percent. Other attempts to support the GoG’s 2022 budget include a boycott of the unproductive road toll system and a 20% reduction in government spending. The telcos have also promised to decrease their fees by 25%. Locals and opponents have had varied responses. The research, on the other hand, is confined to determining the viability of the expected possibilities. According to the report, the Government of Ghana lacks the competence to deliver on promises of entrepreneurship, infrastructure development, cyber security, and employment, among other things. According to the research, the government should improve government accountability and openness, concentrate on empowering local producers, correct problems in earlier employment schemes, and build a secure digital infrastructure, among other things. Furthermore, there is a need to limit capital consumption allowances, conduct a comprehensive evaluation of the ring-fencing concept, and develop new flexible taxing sources.
Strategic reassessment of landed property rates; a reasonable rise in rate payment levels; the development of an ad hoc revenue task force to enforce tax payments; and the intensification of revenue mobilization activities and education are among the recommendations (Agyapong, 2012 ( as cited in Akorsu, 2015).
