Can Africa Tap Into The ‘Church Economy’?

seth_terkperAfrica is a hotbed of church activities from worshipping to fund-raising. In the past, the church was seen as a charitable venture which was not supposed to embark on profit-making business.

Currently, Churches on the African continent have grown to command large resources than some smaller nations, ranging from ownership of schools, insurance firms and hospitals, among others.

However, most African countries are yet to come out with policies to regulate the church economy, which worth billions of dollars, into the mainstream one.

A renowned economist and a Senior Lecturer at the University of Cape Coast, Dr. John Gaitsi explains that for Africa to tap into the burgeoning church economy, it must promulgate sound policies and programmes for the benefit of all.

The church, apart from its religious duty to the society also raises money, collections, tithes and other fund raising activities for their operations. They channel these monies into church activities that affect the lives of its members and the community as a whole.

Their investment  in the communities impact on socio-economic developments, including reduction of poverty, empowerment of women, care for children and the vulnerable.

Broadly, these churches also contributed to the socio-economic development of the continent through the provision of jobs to the teeming youth .

The schools, businesses and hospitals among others, established by these churches are to be manned by these young men and women. This invariably leads to the increase of human resource base on the African continent.

For instance, Winners Chapel Ghana has provided buses to their members on credit basis and allow them to pay by installment, thereby providing employment opportunities for members and non members as well.

Also they employ people in other branches which give them incomes, which will be taxed and will contribute to national development.

These churches also provide training programmes for people who are interested in learning trade and they are able to cater for themselves as well as their family and they also pay taxes to the government which is used in developing other sectors.

Furthermore, most infrastructures put up by churches in the communities are either hospitals, educational facilities that would train children, specific skills development, advocacy and counseling centres that contribute to socio-economic development of the people.

When these churches are established into a new community and that area lacks basic amenities like electricity, potable water and good roads as their (churches) social obligation, they usually provide these amenities to the people at their own cost.

Another area the African church is doing wonders is the provision of educational facilities in nursery, primary and to the tertiary level. These educational facilities are opened to all irrespective of their faith.

Also, through the beginning of biblical courses into the programme of schools enables students to be trained in both the biblical and academic know how so that the quality of individuals that get employed are knowledgeable in both areas, thereby increasing the socio-economy of the country and dropping the joblessness ratio.

Since they have undergone training in both biblical and academic area, they exhibit high moral standards in the daily dealings.

These churches establishes nongovernmental organisations (NGOs) that cater for the under fortunate in society such as the orphans, homeless, abused women and children.

Through their NGOs they are able to train, shelter and protect these people, thereby increasing the lifestyle of the less fortunate and in turn increasing the socio-economic development of the country.

In case of fugitives, these NGOs come in to support and help control the cost of damage. Due to the fact that these churches provide some of the infrastructure which ought to be provided by the government, the government is able to concentrate on other important projects since these churches take care of some of the projects which the government ought to undertake.

This serves as a great relief to the government by lifting off some of it burden. The establishments of schools, hospital and others by churches, which pay taxes to the government and is used in developing the nation.  

Through the promotion of health campaigns such as HIV/AIDS awareness, hygiene, work out, funding of worthy campaigns and donations to hospitals churches add extensively to socio-economic development of the country. If you want to donate to local churches, then with Tithe.ly you will be able to donate online.

For example, with the case of free clinics where the poor are treated for free and they also come to get free testing, vaccination, family planning and education on the avoidance of different diseases, thereby increasing the amount of vigorous and able bodied people who are able to work on the continent.

Of late churches are contributing to microfinance thereby helping to develop savings culture among the people. Some churches also engage in volunteerism.

Dr Gaitsi notes: “The lesson to governments and countries in Africa is that they should invest more into socio-economic infrastructure that will help reduce poverty and empower people to engage in entrepreneurial activities, good educational and health systems, robust governance system that establish solid foundation for peace building among communities, fair sharing of natural resources”.

These systems, he says will naturally encourage citizens to religiously honour their tax obligations and be ready to lift the flag of their various countries high.

However, the Senior Lecturer of Finance warns that; ” the sensitive role that the church is being playing is making some church leaders to influence government decisions, distribution, and some cases appointment of government appointees which may not be in the best interest of the country”.

While discussing the positive roles of the church to be emulated by the government, it is important cry about the low level of financial administration, accountability, and full disclosure among churches.

The laws in many African countries registered churches as charitable organisations and therefore most of the funds they generate do not attract taxes.

However, they pay taxes on income earned by individual church workers and any profit making venture of the church.

Governments should balance the desire to widen the scope of payment of tax against the overall positive contribution of the church to socio-economic development.

However, individual leaders who engaged in private activities especially selling of literature or audio visuals which go into their personal accounts must pay taxes on those incomes.

By Masahudu  ANKIILU Kunateh, African Eye News.com

 

 

 

 

 

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