Amazon Web Services (AWS) will implement a 21% tax on cloud services for customers in Ghana starting March 1, 2025.
Ghanaian startups, which depend on the global cloud service provider for data storage and digital operations, will face higher costs.
The tax includes a 15% Value Added Tax (VAT) and an additional 6% in levies, including the National Health Insurance Levy, the Ghana Education Trust Fund Levy, and the COVID-19 Health Recovery Levy.
Due to this tax, Ghanaian startups may find themselves at a competitive disadvantage in regions with more favorable financial conditions.
Ghana’s existing general tax structure has already created challenges for startups, with businesses facing increased pressures. The most significant of these challenges came in 2023, when the VAT was raised from 12.5% to 15%.
AWS’s new tax could push Ghanaian startups to explore alternative cloud providers or local infrastructure solutions, potentially slowing down their growth and innovation cycles.
Despite the increasing challenges, market forecasts predict strong resilience. The public cloud sector in Ghana is expected to generate $306.10 million in revenue in 2025.