AWS to Implement 21% Tax on Cloud Services in Ghana
TLDR
- Amazon Web Services (AWS) will impose a 21% tax on cloud services for customers in Ghana starting March 1
- The new charges will raise operational costs for Ghanaian startups reliant on AWS for data storage and digital infrastructure
- Ghana’s broader tax policies have already made compliance costly for businesses
Amazon Web Services (AWS) will impose a 21% tax on cloud services for customers in Ghana starting March 1, 2025. The tax includes a 15% Value Added Tax (VAT) and 6% in levies, covering the National Health Insurance Levy, the Ghana Education Trust Fund Levy, and the COVID-19 Health Recovery Levy.
The new charges will raise operational costs for Ghanaian startups reliant on AWS for data storage and digital infrastructure. Ghana’s broader tax policies have already made compliance costly for businesses. In 2023, the government introduced additional taxes after increasing VAT from 12.5% to 15%.
The tax could put local startups at a disadvantage compared to peers in regions with lower cloud service costs. Some businesses may seek alternative cloud providers or on-premises solutions, potentially affecting growth and innovation. AWS previously introduced local currency payments in Nigeria to reduce forex-related costs, but similar measures have not been announced for Ghana.
Daba is Africa's leading investment platform for private and public markets. Download here
Key Takeaways
AWS’s 21% tax adds financial strain to Ghana’s startup ecosystem, where affordable cloud access is essential for development and deployment. Startups may face increased barriers to scaling, with higher costs potentially slowing product launches and market expansion. Ghana’s cloud computing sector is projected to reach $306.1 million in revenue by 2025, but new taxes could influence spending patterns. Some companies may consider shifting workloads to other cloud providers or investing in private infrastructure. Governments across Africa are introducing digital service taxes to boost revenue, but these policies also risk discouraging investment in the tech sector. Ghanaian startups will need to adapt to the new tax landscape while competing in an increasingly digital economy.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.