Africa’s tax policies are worsening inequality by placing a heavier burden on the poor while shielding the wealthy, Oxfam has cautioned.
Mr. Mohammed-Anwar Sadat Adam, Country Director of Oxfam in Ghana, said the continent’s regressive tax structures were deliberately designed to maintain economic imbalances, with ordinary citizens paying a far greater share of their income in taxes compared to the rich.
Speaking at the 7th College of Humanities International Research Conference and 4th Staff Awards Ceremony at the University of Ghana’s Cedi Conference Centre, he noted that Africa remains the only region where taxes on wealth and property fail to redistribute resources from the rich to the poor.
Burden on the Poor, Incentives for the Rich
According to Mr. Adam, while the wealthy enjoy numerous tax exemptions and incentives on corporate income, African governments disproportionately tax labour and consumption.
“For every dollar African countries raise through income and profit taxes, they collect more than two dollars through regressive indirect taxes like Value Added Tax (VAT), which hits the poor the hardest,” he said.
He pointed out that wealth taxation has fallen by almost 25% across Africa, while social security charges tied to salaries have climbed by 20% and income taxes by 13%.
This, he argued, undermines efforts to reduce inequality and creates conditions where economic growth benefits only a select few.
Calls for Inclusive Growth
Other speakers at the conference echoed these concerns. Dr. Anthony Yaw Baah, Chairperson of the Ghana Statistical Service Board, warned that Ghana’s growth story has not been inclusive, as many young people remain unemployed despite rising GDP.
“Economic growth without jobs for citizens, especially the youth, cannot be considered inclusive,” Dr. Baah stressed, citing a former Vice President’s argument that job creation is the surest path to shared prosperity.
Academic Push for Policy Change
The two-day conference, themed “Bridging Inequalities in a Changing World: Advancing Inclusive Growth, Resilience, and Sustainable Natural Resource Management,” brought together scholars and policymakers from across West Africa to explore strategies for closing inequality gaps.
University of Ghana Vice Chancellor, Professor Nana Aba Appiah Amfo, described the event as a vital platform for shaping reforms.
She emphasized that while challenges such as inequality are global, the solutions must be rooted in local contexts.
“The research findings presented here are not only globally relevant but also locally applicable,” Prof. Amfo said, adding that the university prioritizes transformative learning, strategic partnerships, and inclusivity in line with its development mission.
Rethinking Africa’s Tax Future
Oxfam’s warning comes amid growing pressure on African governments to reform their tax systems in order to reduce reliance on indirect taxation and ensure the wealthy contribute fairly.
Analysts argue that strengthening wealth and property taxes while closing loopholes on corporate incentives could generate resources for social protection, job creation, and public services.
Mr. Adam urged policymakers to take bold steps to rebalance tax regimes and ensure Africa’s growth does not deepen existing divides.
