Digital Transformation: A vehicle for transparency in the telecommunications and digital financial transactions sectors
Technological innovation is a double-edged sword. On the one hand, it increases productivity and gives citizens the possibility to enjoy new and improved services in virtually all sectors of the economy. But on the other hand, it requires that the relevant regulatory authorities keep abreast of the technological developments if they are to effectively govern their respective sector.
Improving tax transparency and decision-making through Big Data
In this time of health and economic crisis, the mobilization of tax revenue has become a compelling need in emerging countries. Fast-growing sectors such as telecommunications digital financial transactions are a crucial source of tax revenue for governments. However, the technological innovation that characterizes them often makes their governance more complex, especially if the relevant regulatory authorities have inadequate technological tools at their disposal. As a result, many regulatory authorities fail to efficiently secure the tax revenue owed by these sectors.
It is, therefore, crucial to bridge the technological gap between the authorities and the stakeholders of these dynamic sectors, which have established themselves as pillars of economic resilience in emerging countries. The deployment of RegTech solutions promotes access to reliable data, as well as the traceability and predictability of electronic transactions. It also reinforces the capacity to leverage Big Data, which constitutes a “major incentive for transparency” in these complex ecosystems. The stakes are high and varied for the States, especially in terms of effective support for decision-making.
Mobilizing funds for sustainable growth thanks to digital transformation
The main challenge is the optimization of tax collection through revenue certification. This process promotes trust among all the stakeholders of the ecosystem, including the tax collectors and taxpayers. We cannot overstate the importance of promoting responsible growth and eliminating all risks of fraud, such as bypass, under-declaration of revenue, and tax evasion, in the telecommunications sector. However, it is just as important to efficiently combat money laundering and terrorism financing in the digital financial transactions sector (Mobile Money and remittances).
For governments, the modernization of the administration through digital transformation is an effective means to internally mobilize funding resources. Furthermore, it enables the activation of innovative financing tools, with a view to fostering strong and sustained growth.
Alioune Ndiaye, Regional Sales Director
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