Amazon Web Services (AWS) will introduce a 21% tax on cloud services for customers in Ghana starting March 1, 2025. The tax will increase operational costs for Ghanaian startups that rely on AWS for data storage and digital operations.
The tax includes a 15% Value Added Tax (VAT) and an additional 6% in levies, covering the National Health Insurance Levy, the Ghana Education Trust Fund Levy, and the COVID-19 Health Recovery Levy, AWS stated in a notice seen by TechCabal.
The new tax could place Ghanaian startups at a disadvantage compared to competitors in regions with better financial conditions for cloud adoption. AWS had previously announced in January 2023 that it would accept payments in Naira and seven other local currencies to reduce foreign exchange costs.
Ghana’s tax policies have long posed challenges for startups, with multiple levies increasing compliance costs. In 2023, Ghana’s parliament introduced new taxes on individuals and businesses, following a VAT increase from 12.5% to 15%. Startups dependent on cloud services may now face additional financial pressure, potentially slowing product development and market entry.
The AWS tax could push Ghanaian startups to seek alternative cloud providers or on-premises solutions, potentially affecting their growth and innovation cycles.
Despite these challenges, Ghana’s public cloud sector is expected to generate $306.10 million in revenue in 2025, according to Statista. Ghana’s vibrant startup ecosystem depends on affordable cloud services, but the new tax may impact the accessibility of these essential resources.
