The International Monetary Fund (IMF) has highlighted strategic ways for Sub-Saharan African countries to increase government revenue. According to the IMF, modernizing tax systems, closing loopholes, and adopting digital tools can significantly enhance revenue collection.
Fairer Tax Policies Can Drive Development
The IMF emphasizes that implementing fair and efficient tax policies not only increases government income but also creates more resources for critical public services. Enhanced revenue can be invested in schools, hospitals, and infrastructure, while reducing dependency on external borrowing.
A recent post on the IMF’s X (formerly Twitter) page noted:
“Sub-Saharan Africa can raise more revenue by modernising tax systems, closing loopholes, and using digital tools. Fairer tax policies mean more resources for spending on priorities like schools, hospitals, and infrastructure, while reducing reliance on external borrowing.”
Global Economic Outlook and Regional Implications
The IMF also reviewed the current global economic environment, which has been reshaped by new policy measures. While some extreme trade tariffs have been moderated through deals and policy adjustments, volatility persists. Factors that boosted activity in early 2025, such as front-loading, are now fading.
Global growth projections in the IMF’s latest World Economic Outlook (WEO) indicate a slowdown, with growth expected to decrease from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026. Advanced economies are projected to grow around 1.5%, while emerging markets and developing economies, including many in Sub-Saharan Africa, are expected to grow slightly above 4%.
Inflation trends are also mixed: while declining globally, it remains above target in the United States with potential upside risks and relatively subdued in other regions.
Key Risks and Policy Recommendations
The IMF warns that global growth could be further hindered by prolonged uncertainty, rising protectionism, labor market shocks, fiscal vulnerabilities, and potential financial corrections. Institutional erosion could also threaten economic stability.
To counter these risks, the IMF urges policymakers to:
- Implement credible, transparent, and sustainable economic policies
- Pair trade diplomacy with macroeconomic adjustments
- Rebuild fiscal buffers
- Preserve central bank independence
- Accelerate structural reforms
How JS Morlu Ghana Can Support Governments and Organizations
As governments in Sub-Saharan Africa take steps to modernize their tax systems and embrace digital transformation, JS Morlu Ghana stands ready to assist.
Our team provides expert advisory, audit, and tax services designed to help both public and private institutions enhance revenue efficiency, strengthen financial compliance, and implement digital solutions for better tax management.
We support organizations in:
- Developing transparent and efficient tax reporting systems
- Identifying and closing compliance gaps
- Designing data-driven financial strategies
- Integrating technology for smarter, real-time decision-making
By leveraging deep regional expertise and global best practices, JS Morlu Ghana helps institutions build stronger financial systems that align with IMF recommendations creating a path toward sustainable growth and economic resilience.
Conclusion
Modernizing tax frameworks, closing loopholes, and embracing digital solutions can empower governments in Sub-Saharan Africa to better fund essential services and reduce reliance on external borrowing. With the right partners like JS Morlu Ghana, countries and organizations can translate these policy recommendations into actionable strategies that strengthen revenue systems and drive long-term development.