Amazon Web Services (AWS) is set to introduce a 21% tax on cloud services for customers in Ghana effective March 1, 2025. This tax, comprising a 15% Value Added Tax (VAT) and an additional 6% in levies, is expected to increase operational costs for Ghanaian startups relying on AWS for data storage and digital operations.
The implementation of this tax may disadvantage Ghanaian startups compared to those in regions with more favorable financial conditions for cloud services. Ghanaian startups have already been facing challenges due to the country’s complex tax landscape, including various levies and compliance costs that impact business operations.
With the new tax from AWS, Ghanaian startups might consider exploring alternative cloud providers or on-premises infrastructure solutions, potentially affecting their growth and innovation cycles.
Despite these obstacles, the market shows resilience, with Ghana’s public cloud sector projected to reach $306.10 million in revenue in 2025. The country hosts a thriving startup ecosystem that heavily relies on affordable cloud services for development and deployment, but the introduction of the AWS tax could jeopardize the accessibility of these essential services.