Ghana hires McKinsey as it targets revenue increase

Ghana has hired management consulting firm McKinsey to help the country increase collections after missing revenue target for January to August, 2018 by 1.8 billion cedis ($367 million).

The country had also missed its revenue target for 2017, although it met fiscal-consolidation goals. Ghana’s tax revenue as proportion of GDP, which is at 13 percent, lags West African neighbours Nigeria and Ivory Coast. It is, therefore, looking to change this by, among other things, widen the tax net.

One of the recommendations made by the International Monetary Fund (IMF) in March, during a review of Ghana’s $1 billion extended credit-facility program was that the West African country should improve revenue collection to achieve its fiscal targets. As a result, President Nana Akufo-Addo announced tax hike for high earners in July.

Emmanuel Kofi Nti, commissioner general of the Ghana Revenue Authority said in statement on Wednesday that the revenue gap for the first eight months of the year is due to shortfalls in customs collections.

Nti said McKinsey was hired to change GRA’s systems to be able to deliver best-in-class revenue administration by simplifying processes and introducing innovation.

McKinsey is expected to train GRA staff and help plug leakages and widen the tax net to ensure Ghana will stop missing revenue targets.