Bright Simon, Vice President of IMANI Africa, has raised concerns regarding the behavior of top regulators in Africa, particularly about their focus on revenue generation. He asserts that foreign investors are often taken aback by regulators’ obsession with fees, which appears to prioritize revenue collection over investor support.
Simon highlights a troubling trend where regulators are highly efficient in billing but often unresponsive to urgent inquiries from investors. This duality raises questions about their commitment to fostering a conducive investment climate.
In Ghana, the central tax authority’s strategic plan illustrates this focus on revenue maximization, which Simon argues could lead to detrimental long-term consequences. He points out that while increasing tax revenue is crucial, other performance targets, such as improving customer service for tax compliance, are equally vital for sustainable growth. So far, the agency has largely concentrated its efforts on revenue-related initiatives, with minimal attention to enhancing taxpayer satisfaction.
The situation mirrors challenges faced by the Petroleum Commission of Ghana, where an increase in personnel and expenditure occurred despite declining oil production and revenues. Simon suggests that this focus on fees and staff expansion could hinder the sector’s overall sustainability and effectiveness.
As the implications of these practices unfold, Simon’s commentary underscores the need for a balanced approach to regulation that prioritizes both revenue generation and investor engagement.
