Title:
Digital Public Infrastructure, the Building Blocks for Digital Financial Inclusion and Taxation of the Digital Economy in Liberia.

Authors:
David Hope Kanu, USA

Abstract:

The digital era presents remarkable opportunities for the digital transformation of economies and an all-inclusive financial system. However, for Liberia, these prospects seem out of reach. The harsh reality of inconsistent, duplicated, siloed, and fragmented e-government service delivery, combined with the scarcity of resources, looms significantly over the country's digital transformation ambitions. Despite the positive outcomes, such as the amendment of the National Electronic Payment Switch (NEPS), the digitalization of the Liberia Revenue Authority (LRA), e-Liberia service centre, coordination and empowerment of the National Identification Registry (NIR) and talks with N-Soft for governance digital solution over the years, the broader adoption of digital financial inclusion, and mobilization of tax revenue from the digital economy, remain a challenge for the government of Liberia. Nonetheless, Digital Public Infrastructure (DPI) has emerged as a ray of hope to make Liberia's digital transformation journey a reality. Based on a conceptual review and critical analysis of literature, policy documents, and briefs from international organizations, this study examines the impact of the government of Liberia's development and implementation of digital public infrastructure on digital financial inclusion and the taxation of the digital economy in Liberia. The outcome of the review reveals that a well-built, well-funded, secure, scalable, and interoperable digital public infrastructure layer, including digital ID, digital payments, and consent data exchange systems, will spur wider adoption of digital financial inclusion in Liberia and enhance the mobilization of domestic tax revenue from the digital economy. With DPI, Liberians can use a secure digital ID to open a bank account, connect payment systems to identity, and exchange verified data across service providers, thus accelerating digital financial inclusion in Liberia. In addition, linking digital ID, digital payments, and consent-based data sharing across the public and private sectors will boost tax compliance and enhance LRA capacity to collect lawful domestic tax revenue from the digital economy. Thus, by implementing an inclusive DPI, the government of Liberia can overcome some of its most entrenched challenges in its digital transformation journey, hindering the broader adoption of digital financial inclusion and the taxation of the digital economy in Liberia.

DOI: https://doi.org/10.51505/IJEBMR.2025.91106