According to recent news reports, the mobile network operator, MTN, plans to invest $1 billion in Ghana after the government dropped its $773 million tax claims against the company. This decision by the government to drop the claims is expected to facilitate MTN’s future investments in the country.
MTN is the largest mobile operator in Africa and the Middle East. The company’s operations are spread across 21 countries in Africa, the Middle East and Asia. MTN’s investments will be focused on boosting the country’s infrastructure, including the rapid deployment of fiber and the installation of 5G.
The tax dispute between MTN and the Ghanaian government had been on-going for several years. In 2019, the Ghana Revenue Authority (GRA) demanded that MTN pay $773 million in taxes, including penalties and interest, for the years 2014 to 2018. MTN was accused of under-declaring revenue by 30%. MTN disputed the claims and took the matter to court.
However, in February 2023, the GRA announced that it had decided to fully drop the tax claims against MTN. The decision was made after negotiations between the two parties and was aimed at encouraging MTN to continue investing in the country.
MTN has been operating in Ghana since 2006 and is one of the country’s largest telecommunications companies. The $1 billion investment is expected to be made over the next three years and will be used to expand MTN’s network infrastructure and improve the quality of its services.
Overall, this decision by the Ghanaian government to drop the tax claims against MTN is seen as a positive development for both the company and the country. It is expected to encourage other foreign investors to consider investing in Ghana, which could help to stimulate economic growth and create jobs.