Ghana and Korea unveil master plan for tax modernisation
Ghana · ECONOMY Key Facts —Master plan handover: Ghana received the tax modernisation master plan in August 2026, developed with Korea International Cooperation Agency support. —Project origins: KOICA and Ghana signed the partnership on 8 September 2023, represented by Donghyeon Lee and then Deputy Finance Minister John Kumah. —Grant value: A related financing report put […] The post Ghana and…
In August 2026, Ghana received a tax modernisation master plan, developed with support from the Korea International Cooperation Agency (KOICA). The plan was signed off on September 8, 2023, when the Korean International Cooperation Agency (KOICA) and Ghana entered into a partnership. A related financing report stated that the KOICA grant amounted to US$2.2 million, intended for digital tax administration structures.
The master plan aims to broaden Ghana's tax base, improve compliance, and digitise revenue administration. Its objectives include bringing the informal sector under the tax net, enhancing income tax and value-added tax (VAT) policies, and transforming tax administration into a data-driven, intelligent system. Additionally, it seeks to expand digital channels for taxpayer services.
Ghana's revenue strategy targets raising its tax-to-GDP ratio to 20 percent and non-tax revenue to 4 percent between 2024 and 2027. The implementation of the plan is outlined in 113 policy and administrative actions. A 2026 analysis revealed that Ghana's tax-to-GDP ratio increased from approximately 12.3 percent in 2023 to 14 percent in 2025. However, further improvements are necessary to stabilize the fiscal situation and reduce reliance on borrowing.
Korea's involvement in this project reflects its approach to developmental state diplomacy, which involves sharing administrative knowledge, digital public-finance systems, and policy consulting. This partnership model benefits Korea by establishing commercial influence, positioning it as a capacity-building partner, and enhancing its geopolitical footprint in Africa.
The tax modernisation master plan is part of a broader financial relationship between Ghana and Korea. In June 2024, the two countries signed a US$2 billion framework arrangement under Korea's Economic Development Cooperation Fund, aimed at supporting Ghana's priority sectors for the next five years. This financial support also extends to other areas such as health, agriculture, tax administration, and infrastructure.
The initiatives are managed by various Korean agencies, including KOICA, KOTRA, KOFIH, the Korea Exchange Bank, and KOPIA.
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