UNIVERSITY OF GHANA 

CENTRE FOR SOCIAL POLICY STUDIES  

 

THE PREVALENCE AND BURDEN OF BLACK TAX IN GHANA 

 

 

BY 

GLORIA OWUSU MENSAH 

(10011182)        

 

 

THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN 

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF A 

MASTER OF ARTS IN SOCIAL POLICY STUDIES DEGREE 

 

JULY, 2022

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DECLARATION 

This thesis is the outcome of my original work completed under the guidance of my supervisor. 

This research has not been submitted for any other academic degree at this university or 

anywhere else. References to scholarly works have been properly acknowledged. I am solely 

responsible for the work's content. 

 

 

         
Signature ………… …………….                                       Date 20th July, 2022 

Gloria Owusu Mensah 

(Student) 

 

 

Signature ……………………....                                        Date: 20th July, 2022 

Dr. Kwadwo Opoku 

(Supervisor) 

 

 

 

 

 

 

 

 

 

 

 

 

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DEDICATION 

I dedicate this thesis to Almighty God, and to the loving memory of my father, Robert K. 

Agyeman Duah, for giving me the first step in academic life. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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ACKNOWLEDGEMENT 

My first appreciation goes to God almighty for guiding my steps through life. I wish to express 

profound appreciation to my supervisor, Dr. Kwadwo Opoku whose direction, dedication, and 

patience were vital in the successful completion of this thesis. I owe him my gratitude which 

is beyond the expression of words. My special appreciation also goes to all the lecturers in the 

CSPS department as well as my colleagues. 

To my dearest family for their patience, sacrifice and support.  

In a special way, I wish to acknowledge my organisation, The Commission on Human Rights 

and Administrative Justice (CHRAJ), for entrusting me to undertake this programme. 

I am also indebted to my high profiled research assistant team for their commitment and selfless 

support as well as respondents and participants, for sharing their stories. 

The last appreciation goes to all Public and Civil Servants in Ghana who remit to their extended 

family members out of their monthly salaries.  

 

 

 

 

 

 

 

 

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ABSTRACT 

This study aimed at ascertaining the prevalence and the burden of black tax in Ghana. The 

concept of black tax is associated with the South African economy to describe the practice 

where internal migrants, transfer money to their extended families to help cushion the situation 

of poverty and vulnerabilities among other difficulties. The practice is ubiquitous as 

remittances, yet, the extant literature is restricted on the characteristics of remittance senders 

in Ghana and more specifically, the assistance individuals provide to families, as understood 

in the South African context. This study situates this phenomenon within the Ghanaian social 

context, and as an exploratory study seeks to investigate the nature, the prevalence, and the 

burden of black tax and the motivating factors that shape it in Ghana. Questionnaires and 

interviews formed the sources of primary tools used in the data gathering. A mixed-method 

research design (quantitative and qualitative) was adopted. The population of the study was 

made up of all local government service employees (LGSEs) in Metropolitan, Municipal, and 

District Assemblies (MMDAs) in the Greater Accra Region of Ghana. With the help of a multi-

stage sampling strategy including stratified and simple random sampling techniques, 190 

employees were recruited to participate in the study, of which 25 participated in an in-depth 

interview. A semi-structured questionnaire, and an in-depth interview were used in collecting 

quantitative and qualitative data, respectively. The qualitative data were transcribed, 

summarized, and classified in relation to the study objectives. The quantitative data were 

analyzed using Descriptive statistics (frequency, mean, and standard deviation) and Inferential 

statistics (Exploratory Factor Analysis) and presented in tables, and pie charts with the aid of 

the SPSS-version16. The results generally, highlight a significant prevalence of black tax but, 

is burdensome on respondents. Findings from the study revealed that more than half of 

respondents (69.5%) had dependents outside their nuclear family. The intended purpose for 

sending black tax to respondents was mostly for consumption/upkeep, education, healthcare, 

funeral occasions/ceremonies, business, and for religious contributions. Results from the 

Exploratory Factor Analysis also revealed that unemployment, old age/retirement, an act of 

kindness/sense of obligation, a feeling of indebtedness to parents, financial constraint, socio-

cultural/family values, being gainfully employed or having a regular/stable source of income, 

perception of being rich, and expectations due to professional career position were factors that 

contributed to the prevalence of black tax/local remittance among respondents. Likewise, 

stress, pressure, budget deficits, loss of focus, and less or no funds to save or invest, as well as 

inadequate maintenance of respondents’ nuclear families were stated as the burden that black 

tax exerts on senders. Finally, the study recommends that government should review and 

expand its social protection programmes to reduce the burden on remitters and their 

households, as well as improve the salary structure of public servants.  

 

  

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TABLE OF CONTENT 

DECLARATION....................................................................................................................... i 

DEDICATION.......................................................................................................................... ii 

ACKNOWLEDGEMENT ..................................................................................................... iii 

ABSTRACT ............................................................................................................................. iv 

TABLE OF CONTENT ........................................................................................................... v 

LIST OF TABLES ............................................................................................................... viii 

LIST OF FIGURES ................................................................................................................ ix 

LIST OF ABBREVIATIONS ................................................................................................. x 

CHAPTER ONE ...................................................................................................................... 1 

INTRODUCTION.................................................................................................................... 1 

1.0 Background of the Study .................................................................................................. 1 

1.1 Statement of the Problem ................................................................................................. 4 

1.2 Research Objectives ......................................................................................................... 5 

1.3 Research Questions .......................................................................................................... 5 

1.4 Significance of the Study ................................................................................................. 5 

1.5 Scope of study /Study location ......................................................................................... 7 

1.6 Limitation of the Study .................................................................................................... 7 

1.7 Organization of Chapters ................................................................................................. 7 

CHAPTER TWO ..................................................................................................................... 9 

LITERATURE REVIEW ....................................................................................................... 9 

2.0 Introduction ...................................................................................................................... 9 

2.1 Understanding Black Tax ................................................................................................. 9 

2.1.1 Black Tax and Remittances ....................................................................................... 9 

2.1.2 Various Forms of Black Tax ................................................................................... 11 

2.2  Local Government Service of Ghana ............................................................................ 12 

2.2.1 The Nuclear and the Extended Family ................................................................. 15 

2.3  Historical background to black tax legacy of South Africa .......................................... 15 

2.4 Financial Burden or Responsibility of Black Tax .......................................................... 17 

2.5 Theoretical Perspectives: Nature and Drivers of Remittances and Black Tax .............. 17 

2.5.1 Social Exchange Motive .......................................................................................... 17 

2.5.2 Modernity Theory and Social Mobility ................................................................... 18 

2.6 Conceptualising Black Tax as a form of Remittance ..................................................... 19 

2.7  Empirical Review .......................................................................................................... 20 

2.7.1 Factors Influencing Black Tax ................................................................................ 20 

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2.7.2 The Effects of Black Tax on family ........................................................................ 22 

CHAPTER THREE ............................................................................................................... 23 

METHODOLOGY ................................................................................................................ 23 

3.0 Introduction .................................................................................................................... 23 

3.1 Research Method ............................................................................................................ 23 

3.2 Research Design ............................................................................................................. 23 

3.3 Population....................................................................................................................... 25 

3.4 Sample and Sampling Techniques ................................................................................. 25 

3.5 Data Collection Tools and Instruments .......................................................................... 27 

3.5.1 Survey ...................................................................................................................... 27 

3.5.1.1 Questionnaire .................................................................................................... 29 

3.5.1.2 The Interview Guide ......................................................................................... 29 

3.6. Validity and Reliability of Instruments ......................................................................... 30 

3.7 Data Collection and Data Handling ............................................................................... 30 

3.8 Data Organisation, Consolidation and Analysis ............................................................ 32 

3.9 Ethical Consideration ..................................................................................................... 33 

3.10 Summary ...................................................................................................................... 33 

CHAPTER FOUR .................................................................................................................. 34 

RESULTS, ANALYSIS AND DISCUSSIONS .................................................................... 34 

4.0 Introduction .................................................................................................................... 34 

4.1 Sample and Demographic Characteristics of Survey Respondents ............................... 34 

4.2 Nature and Prevalence of Black Tax .............................................................................. 40 

4.2.1 Regularity in Sending Local Remittance ................................................................. 45 

4.2.2 Reasons of paying Black Tax .................................................................................. 48 

4.2.3 Demographic Characteristics and Local Remittance ............................................... 53 

4.3 Intended Purpose of Black Tax ...................................................................................... 58 

4.4 Burden of Black Tax on Sender ..................................................................................... 64 

4.5 Discussions ..................................................................................................................... 73 

4.6 Summary ........................................................................................................................ 77 

CHAPTER FIVE ................................................................................................................... 78 

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ....................................... 78 

5.0 Introduction .................................................................................................................... 78 

5.1 Summary of Major Findings .......................................................................................... 78 

5.1.1 Nature and Prevalence of Black Tax ....................................................................... 79 

5.1.2 Kind of Support Provided ........................................................................................ 80 

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5.1.3 Burden of Black Tax on Sender .............................................................................. 81 

5.1.4 Factors Influencing Black Tax ................................................................................ 82 

5.2 Conclusion ...................................................................................................................... 82 

5.3 Recommendation ............................................................................................................ 83 

REFERENCES ....................................................................................................................... 85 

APPENDIX ............................................................................................................................. 99 

  

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LIST OF TABLES 

                       Page 

Table 4.1: Demographic Characteristic of the Respondent 36 

Table 4. 2: Educational Background of Respondent 37 

Table 4. 3: Monthly Salary of Respondents (in GHc) 38 

Table 4.4: Gender and Household Head 39 

Table 4.5: Gender and the Number of Dependents (children, spouse, other relatives) 39 

Table 4.6: Number of Dependents Outside the Nuclear Family 41 

Table 4.7: Regularity of Support Provided to Dependents 43 

Table 4.8: Respondents' Relation with Dependents 44 

Table 4.9: Regularity of Sending Remittances/Money 46 

Table 4.10: Theme 1 Irregularity in sending local remittance 46 

Table 4.11: Themes 2 Spread of black tax/local remittances 48 

Table 4.12: Demographic Characteristic and Sending Black Tax 53 

Table 4.13: Income groups and Black tax 55 

Table 4.14: Gender and Amount (of Black tax) Remitted/Sent 56 

Table 4.15: Non-Monetary Support Provided by Respondents 57 

Table 4.16: Three Main Intended Purpose of Local Remittance 59 

Table 4.17: Theme 3 Intended Purpose of Black Tax 59 

Table 4.18: Theme 4 Black Tax Used for Intended Purpose 61 

Table 4.19: Theme 5 Effect of Black Tax on Savings 67 

Table 4.20:Theme 6 Effect of black tax on Investment 69 

Table 4.21: Theme 7 Effect of black tax on Responsibility to family 71 

 

 

 

 

 

 

 

 

 

 

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LIST OF FIGURES 

          Page 

Figure 4.1: Respondents with Dependents outside their Nuclear Family......................... 41 

Figure 4.2: Number of Respondents Living with Dependents ........................................... 43 

Figure 4.3: Respondents who send Local Remittances Outside Household ..................... 44 

Figure 4.4: Sent Remittances over the last 12 months ........................................................ 45 

Figure 4.5: Residential Area of Recipients of Remittances ................................................ 45 

Figure 4.6 : Budgeting for Amount Spent on Dependents Non-Monetary Support ........ 57 

Figure 4.7: Provision of Non-Monetary Support Outside the Household ........................ 57 

Figure 4.8: Ability to meet Demands from Dependents ..................................................... 65 

Figure 4. 9: Effect on Senders Feelings Upon Inability to Meet Demand ........................ 65 

Figure 4.10: Black Tax Affect Respondents' savings/investment plan ............................. 66 

Figure 4. 11 : Effect of black tax on Respondents' Responsibility to family .................... 70 

 

 

 

 

 

 

 

 

 

 

 

 

 

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LIST OF ABBREVIATIONS 

CSOs                           Civil Society Organizations  

GSS   Ghana Statistical Service 

GLSS   Ghana Living Standards Survey 

LGS   Local Government Service  

LGSEs                         Local Government Service Employees 

MMDAs  Metropolitan Municipal District Assemblies  

SA   South Africa 

USA                            United States of America 

  

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CHAPTER ONE 

INTRODUCTION 

 

1.0 Background of the Study 

In recent decades, numerous studies have examined the developing role of migrant remittances, 

with a focus on international remittances in specifically (Adams, Cuecuecha & Page, 2008). 

However, the extant literature has been scanty on internal remittances which is termed Black 

Tax.  The term "black tax" refers to the social and financial support that employed black 

individuals provide to their families and extended relatives (Msibi, 2020). The use of the term 

is not common in many countries but associated more with the South African region, where it 

is acknowledged as a non-official, conversational term. In the United States for example, black 

tax is used to refers to the extra burden placed on African Americans, who have to put forth 

twice as much effort to show their worth (Stevens, 2014). The phenomenon, in the words of 

Ratlebjane (2015), is "the extra money that black professionals send home every month to assist 

their extended families."  

Nonetheless, some recent authors have expanded the usage of the concept beyond the financial 

needs of extended family members, to friends and acquaintances. For instance, whilst 

Mangoma & Wilson-Prangley (2019) define black tax as “money transfers in the form of 

remittances from the emerging middle class to their direct or indirect families,” Olatunji (2022) 

states that in Nigeria, the term black tax or commonly referred to as 2K includes financial 

obligations of the working class to families and friends. Meanwhile, Falco and Bulte (2011) 

refer to this financial obligation as a ‘family tax.’ 

In Ghana, the use of the term is relatively new, although the practice is ubiquitous. Most of the 

people are rather familiar with the term remittance, but not so much with black tax. Black tax 

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mirrors the exact phenomenon in Ghana where families have shared responsibilities in the 

traditional setting, and it has always been the expectation of individuals working to financially 

care and support the extended family. According to Nukunya (2016), although the mutual 

assistance among family members is the most admirable quality of the extended family 

structure. However, one of the main arguments made against the extended family arrangement, 

is that it puts a burden on a person's financial resources. Literate salaried workers frequently 

voice this issue in reaction to the nonstop demands made on them by dependent family 

members. 

Black tax and remittances have similar traits and practices but distinct in content and 

description. For example, both show the flow of finances between members of the family. Yet, 

while remittances are not age-restricted, black tax holds an assumption that once a person has 

completed their studies and found work, they would be able to afford to care for a loved one 

(Mtolo, 2018). Similarly, remittances, as defined by Boakye-Yiadom & Lambon-Quayefio 

(2018) refer to “transfers received in cash or kind from one household to another, and for which 

it is not compulsory to repay back.” Nonetheless, Black tax according to Olatunji (2022) 

involves money transfers from professionals, which are mostly directed to the extended family 

as a form of obligation. 

According to Falco and Bulte (2011), "Black tax is a sort of social capital where tradition and 

norms encourage sharing and redistribution, allowing kinship members to claim support from 

their relatives in dealing with hardships." The authors do, however, warns that this form of 

social capital inhibits saving and investing and could actually lead to a poverty trap. Due to this 

warning, it is critical for businesses and individuals to comprehend all the factors that have an 

impact on this sector of society and, in turn, have an impact on savings and investment. 

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Black tax has roots in internal migration in developing countries where professionals working 

in urban areas send remittances to rural areas, mostly to the extended families. Nevertheless, 

in Ghana, due to the different forms of internal migration, patterns of migrants’ remittance 

transfers can flow according to Mazzucato et al. (2008), from the North to the South, from 

urban to rural, urban to urban, and rural to rural.  In spite of this trend transfers are largely from 

urban to rural than rural to urban. It is worth acknowledging that though remittances are mostly 

from migrants, they may be received from individuals who are non-migrants. 

There have been some scholarly studies that have studied the black tax phenomenon in the 

context of South Africa. Magubane (2017) carried out one of such, whilst Sibiya (2018) and 

Msibi (2020) carried out the others. Magubane (2017) concentrated on how black tax affected 

the middle-class black consumers' buying patterns. Thus, as stated by the author, black tax 

limits one’s ability to save money and live a financially successful lifestyle. Sibiya (2018)  

investigated how the emerging middle class become vulneaable to Black tax. Msibi (2020) on 

the other hand sought to understand how the idea of the black tax affected young, employed 

black South Africans by examining how they perceived it. 

In a study conducted in Ghana, Quartey (2006) discovered that remittances enhance the income 

of Ghanaian households who received them, particularly during economic downturns. Thus, 

remittance inflows to GDP (%) in Ghana was reported at 4.9267 % in 2020 (Trading 

Economics, 2022). Nonetheless, (Twum & Nabila; 1995; Mensah-Bonsu, 2004), intimate that 

the burden (financial, emotional etc.) that these remittances have on the working class who 

usually send home these monies, have several repercussions (consumption behaviour, savings 

and psychological issues etc.) on the sending communities and people but, have least been 

considered in the literature of remittances in Ghana. It is based on this knowledge, that the 

current study intended to investigate the nature and prevalence of black tax, and the extent of 

burden on internal migrant professionals. 

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1.1 Statement of the Problem 

Studies show that internal remittances flow to a greater percentage of poorer, often rural 

households, which have the ability to reduce poverty and build human capital (Castaldo et al. 

2012; Housen et al. 2013). Nonetheless, more than 6.8 million Ghanaians are still poor (Ghana 

Statistical Service, 2017). As a result, most people in the age of working class find every avenue 

of employment acceptable such that they would be able to support and resource the poor in 

their homes or villages. 

According to estimates, “an average of GH₵9,466 per year, out of which GH₵5,793 is spent 

on non-food items whilst GH₵3,673 is allocated to food items) Similarly, with regards to 

Ghana’s average annual per capita expenditure of GH₵3,117, it is shown that on average, an 

individual spends approximately GH₵8.85 per day” (Ghana Statistical Service, [GSS], (2014). 

This is on the low side considering the number of needs an individual has to fulfil on a daily 

basis. When an individual obtain gainful employment, especially in the government sector, it 

is presumed that the person has stumbled upon a ‘gold mine’, which to one’s relatives is a 

privileged position and thus, there is a high expectation from ones extended family and loved 

ones to meet their needs. Local government workers take charge of service deliveries as well 

as ensure the provision of other expenses of their family to help augment their needs. The undue 

pressure from the extended family to send home money places a strain on their income which 

degenerates into socio-economic consequences for their immediate families (Planting, Phang, 

Raval & Brown, 2013). Besides, given the benefits of remittance receipts as described in the 

literature, it is presumed that remittances sent to recipient households should minimize the 

budgetary constraint on remitters. It is therefore important to distinguish the commonness of 

black tax from the usual internal remittance. This study seeks to achieve this by contributing 

to empirical works on migration and remittance receipt by providing more insight into how the 

phenomenon resonates within the Ghanaian context.  

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1.2 Research Objectives 

This study seeks to investigate the nature, prevalence and the extent of burden of black tax and 

the factors that shape it in Ghana.  

In pursuit of this, the study intends to achieve the following objectives; 

1. To ascertain the nature, and level of prevalence of black tax among employees of MMDAs. 

2. Investigate the intended purpose of black tax (local remittance) sent by local government   

    service employees of MMDAs to their direct and indirect families. 

 

3. To examine the extent of burden of black tax on the employees of MMDAs. 

1.3 Research Questions 

Consequently, the primary question the research seeks to address is “What is the nature, the 

prevalence and the extent of burden of black tax and the factors that shape it in Ghana?” 

The following questions were given special attention in the study; 

1. What is the nature and level of prevalence of black tax among employees of MMDAs? 

2. What is the intended purpose of black tax (local remittance) sent by local government service   

     employees of MMDAs to their direct and indirect families? 

 

3. To what extent is  black tax a burden on employees of MMDAs? 

1.4 Significance of the Study 

The current study seek to add to existing literature on migration and remittances by 

investigating the prevalence of the issue of black tax, the burden it imposes, and factors that 

shape its existence in Ghana. With remittances becoming an increasingly sustainable source of 

income, transfers can influence the level of savings and investments among public servants 

(remitters’) households, where already employment income is woefully inadequate.  It has been 

observed that certain people in this cstegory feel the pressure of expectations of remitting, 

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mounted by relatives in rural households, which end up forcing them to rely on private loans 

and other sources of income to survive.   

Numerous researchers have examined the impact of remittances on household welfare, but 

Ghanaian remittance studies have focused more frequently on the evaluation of the impact of 

remittances on particular investment goods like education, poverty and inequality, wellbeing, 

and agricultural output (Adams & Page, 2005; Adams & Cuecuecha, 2013; Boakye-Yiadom, 

2008; Lucas & Stark, 1985; Quartey, 2006). The researcher, on the other hand, was unable to 

locate any papers that explore the subject of black tax/local remittances and its impact on the 

sender's household in Ghana. 

Literature is also limited in terms of the assistance that family members provide as understood 

in South African culture (Moore & Seekings, 2018). Studies conducted in South Africa, the 

United States, and Nigeria make up the majority of the black tax literature. The purpose of this 

study is to explore the South African conception of black tax in the context of Ghana. 

In this study, the focus is on senior to management level Local Government Service employees 

(LGSE) in Metropolitan, Municipal, and District Assemblies (MMDAs). This is because they 

are a working class on government payroll and form part of the country’s large number of 

internal migrants who often send money home to relatives, whom they left behind. 

Additionally, they play a critical role in government policy execution, revenue collection, and 

assessment at the district assembly level. Thus, considering the kind of burden that this 

compulsory family tax places on them as professionals, in terms of the deterioration of 

responsible moral behaviour and professional standards in service delivery are crucial matters 

that justifies the reason for targeting them as the research respondents in this case of black tax 

study.  

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Additionally, stakeholders, such as the government and Civil Society Organizations (CSOs), 

may capitalize on the findings for policy decisions and actions on migration and remittance 

flows. This makes the present unique problem of black tax on the households of local 

government employees in the Greater Accra region, a relevant study.  

 

1.5 Scope of study /Study location 

The study focused on local government service employees on Metropolitan, Municipal, and 

District Assemblies (MMDAs) in the Greater Accra region of Ghana. The expanse of the study 

matter covered the intended purposes of black tax (local remittance) sent by local government 

service employees in MMDAs to their extended family members and the effects on their 

household welfare. The qualitative approach took place only in six selected MMDAs. The 

study adopted a random sampling technique to select respondents. The researcher clustered the 

Assemblies into three groups (Metropolitan, Municipals, Districts Assemblies,). Subsequently, 

the paper used purposive sampling technique to select the participating respondents according 

to their three clusters.  

1.6 Limitation of the Study 

The data collection process had the following limitations: The study was practically 

constrained by having to deal with limited time slated for the study and financial constraints 

since the methodology employed relied on both secondary data but extensively on primary 

data necessitating for additional cost in covering the six widely dispersed assemblies chosen as 

the study’s focus areas. This has however become an added quality for the study since the 

views of over 190 respondents as well as 25 interviews of those under study were solicited.  

1.7 Organization of Chapters 

In terms of chapter structure, the thesis is organized into five chapters. Chapter one, forms the 

introductory chapter of the entire study. It takes a crucial look at the general background of the 

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study area. The problem statement, research questions and the objectives, significance of the 

study as well as the scope and limitations of the study. Chapter two reviews relevant pieces of 

literature, related theories and concepts to the study. Chapter three describes the area of study, 

research design, research population, sampling and sample size determination, sampling 

technique, ethical considerations, data collecting, and data analysis methods. The presentation 

and analysis of the study's data are covered in Chapter four. Finally, chapter five of the study 

presents the summary of findings, conclusion and recommendations. 

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CHAPTER TWO 

LITERATURE REVIEW 

2.0 Introduction 

The current study on black tax is a novelty in Ghana and thus, meant to fill the gap in literature 

on black tax in Ghanaian context. This chapter reviews relevant studies pertaining to the nature, 

prevalence and the burden of the black tax phenomena in order relate it to condition of local 

government service employees in Ghana. The chapter accomplishes this by providing a 

descriptive and historical overview of black tax, as a type of remittance flow to households. It 

discusses literature on the remitter, the uses of remittances, the factors that drives it, as well as 

the burden it poses on remitters’ households. In essence, the chapter presents the conceptual 

framework, theoretical review, and empirical findings of related studies within which this study 

is premised. 

2.1 Understanding Black Tax 

2.1.1 Black Tax and Remittances 

The term 'Black Tax,' “a non-official, conversational term used in the South Africa to refer to 

the social and financial support provided by employed black people to their families and 

extended families” (Msibi, 2020; Magubane, 2016). The phenomenon can be traced to a  Kulu 

proverb that says "Izandla ziyagezana," which translate as, "one hand washes the other." 

figuratively meaning, one good turn deserves another. There is an assumption that once a 

person has completed their studies and found work, they would be able to afford to care for a 

loved one (Mtolo, 2018). Thus, according to Mangoma and Wilson-Prangley (2018), black tax 

is a type of intra-family financial support, while Ratlebjane (2015) "adds that the phenomena 

is the extra money that black professionals spend each month to maintain their non-nuclear 

families”. Magubane (2016), on the other hand, believes that it is both the social and economic 

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help provided to families, “such as money, shelter, food, and clothing”. The International 

Monetary Fund (2020) in similar vein opined, “When migrants send home part of their earnings 

in the form of either cash or goods to support their families, these transfers are known as 

workers’ or migrant remittances”. Vuk'uzenzele (2018), establishes the historical background 

to the phenomena by describing it as "a colloquial term used to identify young Black people 

who divide their earnings with direct and extended relatives while attempting to manage their 

personal expenses." Mhlungu (2015) refered to black tax as “a shorthand used to articulate the 

financial support to the extended family as a result of difficulties faced by black people in a 

society that is characterised by persistent and institutionalized racism and white privilege.”  

Nonetheless, some individuals view black tax as a burden, while others consider it as a 

responsibility. Working-class black people are not expected to help their extended families 

until they have a well-paying job (Cherlin, 2014). This gives rise to the notion of "Ubuntu," 

which is defined as "having humanity and realizing that who you are is a result of others," 

implying that your humanity is inextricably linked to theirs. Altruism, insurance, loan 

repayment, and investments have all been found as reasons for remittances. (Yang, 2011 in 

Sibiya, 2018; Lucas & Sark, 1985). Similarly, Magubane (2017) discovered that providing help 

to family members is both selfless and gratifying for the person providing it.  

Whilst issues on remittance have been extensively discussed in both academic and policy 

circles, black tax is less known. Nonetheless, public debate on remittances and their effect have 

centred on international migrant remittances. This is partly, because remittances are widely 

perceived to be transfers from ‘migrants to their origin countries’, be it monetary or non-

monetary items (Ambrosius & Cuecuecha, 2016; Yang, 2011). However, the internal flow of 

remittances has gradually crept into the discourse gaining ascendancy in the public debate 

(Jones & Jones, 2013). This source of remittance is very significant especially to low-income 

countries towards the alleviation of poverty and inequality (McLeod & Molina, 2015). Hence, 

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several studies have concluded that households, which receive remittances, experience 

improvement in welfare (Cuong & Linh, 2018; Adams & Cuecuecha, 2013).  

In the sense of household livelihood accomplishments, remittances may be termed as “the 

monetary or in-kind transfer from one household to another and for which no direct or explicit 

repayment is needed” (Garcia, Kerekes & Archer, 2012; Brück, d’Errico & Pietrelli, 2019). 

When the transfers are made from the emerging middle class to their indirect families, the name 

for such phenomenon is known as “Black Tax” (Mangoma & Wilson-Prangley, 2019).  

Countries such as United States employ the term, but the concept of Black Tax is colloquially 

associated with the South African economy, and how their middle class contributes to their 

families’ well-being (Mangoma & Wilson-Prangley, 2019). Black tax has roots in internal 

migration in developing countries where individuals working in urban areas send remittances 

to rural areas, most especially to the extended families. These individuals might not have the 

option of not assisting due to how family bonds and community relations are structured in 

Africa, hence they are bound to assist whether they would want to or otherwise (Magubane, 

2017) in this case, local government employees. 

2.1.2 Various Forms of Black Tax 

Considering its motive, previous researchers such as Grimm, Hartwig and Lay (2017) viewed 

black tax as a compulsory obligation (Carpenter & Phaswana, 2021). Others reiterate this by 

viewing the mandatory black tax as a sort of family cohesion (Di Falco & Bulte, 2011; Grimm 

et al. 2017). Magubane (2016) claim that some black taxpayers are first-born children who are 

obligated to care for their younger siblings. Family-forced solidarity, according to Alby, Auriol 

and Nguimkeu (2013), hinders entrepreneurship. "People who have more than they obviously 

need are put under persistent pressure to share," Woodburn (1998), who based his conclusions 

on Hadza hunter-gatherers in Tanzania, writes. In reality, both show the existence of black 

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taxation and the pressures associated with such arrangements. most African social networks 

discourage wealth accumulation, and sharing is a moral imperative (Planting et al., 2013). 

According to Alby et al. (2013), wealthy Africans have an obligation to their less fortunate 

relatives and extended family to share their resources. In the African context, becoming a 

formal-sector entrepreneur denotes economic success but it also entails significant family 

taxation (ibid). In most traditional African communities, individual wealth creation is seen as 

anti-social behavior (Barrett & McIntosh, 2015). This means that wealth acquisition is 

important to the public because it determines how much a person should contribute to the 

family network. 

In contrast, Magubane (2016) proposed that a different sort of black tax is voluntary black 

tax. Individuals are deemed to be doing so if they help their siblings or family members 

without any repayment. Mkhonto and Hanssen (2018) stated that paying a black tax is not 

about supporting others' extravagant lifestyles; rather, it is about performing a 

responsibility: buying school supplies for a needy student. Other academics’ have supported 

this argument as a sign of motivation for the help of their blood or family members (Alger 

& Weibull, 2010). Giving social, emotional, and practical support to other family members 

is regarded as the norm in certain civilizations (Shor, Roelfs & Yogev, 2013). 

2.2  Local Government Service of Ghana 

The public sector is responsible for offering the people of a nation with necessary services. 

Through a number of public institutions, the government offers services to the general public.  

In Ghana, local government officials play critical responsibilities in the management and 

development of the local areas. Decentralization and local government are provisions in the  

1992 Republican Constitution of Ghana's which establishes a framework for citizen 

involvement in decision-making and local governance. Ghana's decentralization policy 

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transfers authority, duties, and financial and human resources from the central government to 

local districts. The partnership between the local and central governments is also established 

in key sectors.  

Ghana is one of the few African countries with a strong history of democratic political life. 

Ghana's local government has a long history that reaches back before colonisation. Successive 

administrations have considered how to establish and develop a robust local government while 

maintaining a healthy central government as well from the times of colonization through the 

wars and struggles for independence to the present (Ayee, 2012). 

Despite its lengthy history, the term "local government" has not been given a clear definition 

by academics. The concept of local government, like many other concepts it may be linked to, 

such as democracy, decentralization, and governance, has been described in divergent ways by 

different scholars. All scholars believe that the purpose of local government is to bring 

administration extremely near to the average person in a given locality. The problem of 

subsidiarity is primarily stressed and commonly recognized as the foundation and root for all 

local government concepts. 

However, a broad definition of local government might be as “a public organization authorized 

to decide and administer a 172 limited range of public policies within a relatively small territory 

which is a sub-division of a regional or national government (Patrick, 2004). In general terms, 

local governments are public legal entities with special revenues, budgets and personnel who 

have duties and powers laid down by law, whose decision bodies are determined by the local 

people to meet the common needs of the local community living in a particular geographical 

area” (Özer & Akçakaya, 2014). 

In order to promote a comprehensive approach to the decentralization process, District 

Assemblies, under the oversight responsibility of the Local Government Service are designated 

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as the highest political, legislation, budgeting, and planning authority at the local level in 

Ghana's Constitution. The Local Government Service was founded by the Local Government 

Act (Act 462) of 1993 in compliance with Article 190 of the Ghanaian Constitution, much like 

every other public sector organization in that country. The Service is made up of a few thousand 

Substructures made up of sub-metropolitans, Zonal, and town councils, as well as sixteen (16) 

Regional Co-coordinating Councils (RCCs), 260 Metropolitan, Municipal, and District 

Assemblies (MMDAs), and sixteen (16) RCCs.  

The main objective of the Service is to successfully implement the decentralization strategy by 

bringing local governance to the people. To ensure that the Regional Coordinating Councils 

(RCCs) and Metropolitan, Municipal and District Assemblies (MMDAs)' activities are 

successful, it is the Service's responsibility to hire professionals and high-tech staff. Perhaps 

what gives the impression that thlocal government officials are well off to outsiders is the 

institutional power that they yield at the local level exhibit, hence anticipated to pay black tax. 

 

Nonetheless, the issues of distortions, inequities, and low incomes have persisted within the 

public service (Government White Paper, 2009), with the Local Government Service (LGS), 

not an exception. The Local Government Service (LGS) is not an exception, but the problems 

of distortions, disparities, and low salaries have remained within the public service 

(Government White Paper, 2009). Numerous labour agitations have plagued Ghana's labour 

front (Yamoah, 2014). Sections of the public sector workforce, including the University 

Teachers Association of Ghana (UTAG), Polytechnic Teachers Association of Ghana 

(POTAG), Civil and Local Government Staff Association of Ghana (CLOGSAG), and 

National Association of Graduate Teachers, Ghana (NAGRAT), have protested all pay 

reforms, including the most recent Single Spine Pay Policy (SSPP). Considering the low 

remunerations offered to employees of public service institutions and the high expections from 

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society from them, makes the current issue of black tax a double burden on Local Government 

Service employees and thus, worth studying.  

 

2.2.1 The Nuclear and the Extended Family 

According to Nukunya (1992), the nuclear family, also known as the immediate family, 

consists of parents and children. Makiwane and others (2016) (p. 4) define the family as "A 

group of persons united by the ties of marriage, blood, adoption, or co-habitation, characterised 

by a common residence (household), interacting and communicating with one another in their 

respective family roles, upholding a common culture, and subject to family rules". 

Nukunya (1992) opined that, whilst the extended family is made up of close, relatives that are 

descended from either a matrilineal or patrilineal line of descent make up the extended family. 

They can also be used to describe a socioeconomic framework in which individuals have 

specific tasks, obligations, and responsibilities that extend beyond those of their immediate 

family. According to Apt (1990), members of extended families often comprise siblings and 

their offspring, grandparents, cousins, nieces and nephews, and in-laws. Family membership 

has both express and implicit requirements in such a unit (Nobles, 1978; Scannapieco & 

Jackson, 1996; Sudarkasa, 1997; Stewart; 2015). A set of shared ideals, such as 

interdependence, mutual aid, resilience, communalism, and collective responsibility, keeps 

members united (Msengana, 2006; Stewart, 2015). As Africans, ‘our culture is predicated on 

the idea that the more capable member of a family should help the less capable member, 

whether on an economic or social level’. Stewart (2015) argued that the types and degrees of 

sharing among family members vary and are purely dependent on their socioeconomic 

situation, which lends validity to this assumption. 

 

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2.3  Historical background to black tax legacy of South Africa 

Contextualizing the emergence of what is now known as the "black tax" requires an 

understanding of South African history. The phrase first appeared in South Africa to describe 

the extra monthly income that Black (or other people of color) professionals give to their 

families, usually out of responsibility. According to Maitra and Ray (2003) in Carpenter & 

Phaswana (2021), the history of black South Africans is to be blamed for the long tradition of 

such private transfers. Families in black South African communities cared for each other prior 

to colonization. Families helped one another and had commitments to one another (Assim, 

2013). Nonetheless, black South Africans were forcibly relocated to economically dormant 

"homelands" during the time of British colonization, particularly during apartheid (Beck 2013). 

In order to find work, many black South African men were compelled to move to the country's 

economic centers, like Johannesburg and Cape Town. Thus, rural households and homelands 

of these migrants eventually became dependent on the financial transfers of the migrants as 

a significant source of income  (Maitra & Ray 2003). 

According to other authors, the opportunity for black people to accumulate generational wealth 

was directly denied by the preferential treatment given to white people. White South Africans, 

who at the time did not have the same rights as black South Africans, were able to enter 

democracy with the proceeds of their wealth to pass on to their children, while black South 

Africans were permitted to enter the new dawn without any financial boost. Thus, according to 

Mangoma & Wilson-Prangley (2019), evidence suggests that ‘black tax’, could help lower 

inequality in South Africa. Nonetheless, whether paying black tax is a responsibility or a 

burden is the subject of current discussion among young black professionals in South Africa. 

because of the enormous expectations it carries.  

 

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2.4 Financial Burden or Responsibility of Black Tax 

Some of the effects of the Black tax are obvious: you profit not just for yourself but also for 

your family (Ratlebjane, 2015). This implies that you have limited control over the investments 

you make, which may have a significant impact on your quality of life and ability to accumulate 

wealth over time. Roy, (2010) opined that this compelled many to go  into debt in order to live 

the life they desired, which would ultimately be detrimental to them. Paying the black tax 

means having to work twice as hard to make ends meet (Mhlanga & Steyn, 2016).  

 

According to Fongwa (2019) "Black/family tax is a notion that essentially refers to the financial 

constraints put on black professionals by their extended relatives.” Furthermore, you will be 

unable to save or even save for the long term, perpetuating a cycle in which your offspring 

would be compelled to assist you in your old age, but if you are able to collect wealth, you will 

be able to leave a legacy for the following generation (Roy, 2015). Thus, the so-called "black 

tax," has a negative influence on the ability of many black professionals to invest and produce 

generational wealth (Alston & Reisch, 2019).  

 

 

2.5 Theoretical Perspectives: Nature and Drivers of Remittances and Black Tax 

The fundamental rationale for sending remittances is one of the theoretical questions addressed 

on the subject in the existing literature. The theory of social exchange motive, as well as 

theories of modernity and social mobility, influence this research, which are concerned with 

the beliefs, values, and standards that people are expected to follow. This section provides an 

overview of remittance decisions for a better comprehension. 

 2.5.1 Social Exchange Motive 

The literature has proposed social exchange theory has been offered in to clarify the rationale 

that supports a migrant's decision to remit. Most models describe social exchange as “a chain 

of mutually dependent interactions that lead to social obligations” (Blau as cited in Cropanzano 

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& Mitchell, 2005). This is founded on the idea that we should get into connections that allow us 

to maximize our benefit while minimizing our costs. Values and standards that are ingrained 

in culturally mandated role expectations coming from the larger social context in which they 

live influence social exchange interactions. These associations are governed by ideals and 

customs, allowing transactions to take place within the larger social milieu in which they exist. 

Reciprocity and equity are the fundamental norms that govern these social interactions. People 

who have been helped feel bound to help others, according to proponents of reciprocity. As a 

result, those who see reciprocity are more likely to be content with maintaining associations. 

In life most societies prioritize nurturing children from an early age lays the groundwork for 

getting help from them later in life (Apt, 1993, Hashimoto & Kendig, 1992). Children who get 

childcare services from their parents are morally obligated to repay the favour by giving them, 

attention when they age (Cropanzano & Mitchell, 2005). 

2.5.2 Modernity Theory and Social Mobility 

The ideas and subjective experiences that frequently accompany structural change are referred 

to as modernity theory. Relationships are challenged and renegotiated as a result of modernity 

(Goransson, 2013). Based on his view on modernity, one can draw the conclusion that 

modernity may be influenced by the culture and values of the middle class. Stewart (2015), is 

however, of the view that the growing middle class prefers to embrace specific behaviours and 

attitudes that are essential for success while maintaining ties to family and community instead 

of entirely adopting middle-class lives and attitudes. Even when social mobility is associated 

with geographic movement, which leads to the establishment of  nuclear families, these 

movements typically do not signal a loss of affiliation with deeply held beliefs or obligations 

but are frequently motivated by the need to avoid crime, obtain better housing, or provide better 

education for children.  

 

 

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Social mobility, according to Goransson (2013), is the movement of individuals between social 

strata. While Sturgis and Sullivan (2008) contend that social mobility is more than just a matter 

of people moving up the social ladder, it is also a visible manifestation of democracy that 

enables the most intelligent and devoted people to advance to the highest positions, regardless 

of their social background. In many nations, social mobility and the rise of the middle class are 

influenced by variables including education, decent governance, and degree of development 

(measured by average per capita GDP in PPP) (Shimeles & Ncube, 2015). A significant factor 

that could impact economic and social mobility is ethnic fractionalization, primarily because 

of inherited inequalities in educational performance or the difficulty of repayment (Shimeles 

& Ncube, 2015). 

 

2.6 Conceptualising Black Tax as a form of Remittance  

As stated by Miles and Huberman (1994) and cited in Latham (2017), conceptual framework 

either in narrative or graphic form explains the main variables and assume some relationship 

between them. The intergenerational perspective was used in the study to construct black tax. 

According to Whyte, Alber, and van der Geest (2008), there are three different ways to 

conceptualize generation. A generation is first thought of as a kinship relation that connects 

parents, children, and their children's offspring. Second, the concept of a generation is used to 

classify and organize society's members into age-related groups. The third definition of 

generation views generation as a cohort, which refers to people who were born in the same 

time period and who share comparable traits and behaviors (Whyte et al., 2008). This study 

used a genealogical perspective on generation, connecting parents, children, and their children's 

offspring through a family bond. Whyte et al. (2008) claim that an intergenerational contract 

is “the implicit expectation that parents will care for their children until they can care for 

themselves, and that children will support their parents when they can no longer support 

themselves”. The intergenerational contract's fundamental tenet is reciprocity, in which one 

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generation invests in the other in the expectation that the favour would be repaid (Weisner, 

Bradley, & Kilbride, 1997). An established relationship between family generations is the 

intergenerational contract. These are supported by cultural norms of decency and humanity in 

the setting of Africa (Evans, 2015). The intergenerational agreement is unlawful. Not 

everything in the intergenerational contract is negotiable, but some aspects of a legal contract 

would be (Whyte et al., 2008). 

African industrialization, urbanization, and changes in home and family systems challenge 

generational relationships (Evans, 2015). According to Stroeken (2017), the intergenerational 

contract is a lifetime exchange relationship in African communities where children are 

expected to support, obey, and respect their parents for the remainder of their lives. It is further 

stated that the duty to care for one's parents does not cease with their old age. For instance, 

young children start to provide labor for the elderly by taking care of other young children or 

running errands (Stroeken, 2017). 

 

2.7  Empirical Review  

2.7.1 Factors Influencing Black Tax 

The altruistic motive has been presented in the literature to explain the rationale that motivates 

a migrant's decision to remit. Individual remitters are performing an obligation, affection, and 

responsibility for one another, according to proponents, which explains migrants' remittance 

decisions (Becker 1981, 1991; Stark and Lucas 1988; Stark 1995; Rapport and Docquier, 

2006). Furthermore, because of their love and concern for their relatives, migrants will be 

willing to send resources to compensate for the income deficit of family members for 

consumption or investment, and may be willing to sacrifice their own well-being or interests 

for the benefit of their relatives' welfare (Addison, 2004). 

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 Nonetheless, Waibel, Floreano, and Keller (2011), assert that Hamilton's rule, a process of 

evolution, is responsible for the black tax's altruistic nature. Altruistic behavior, such as paying 

a private transfer (black tax), is beneficial if the costs to the individual outweigh the gains made 

for the beneficiaries, as determined by their knowledge with the situation (Okasha & Martens 

2016). 

According to Ingham, Chirijevskis and Carmichael (2009), “a high dependency ratio is 

supposedly indicative of the dependency burden on the working population, as it is assumed 

that the economically active proportion of the population will need to provide for the health, 

education, pension, and social security benefits of the non-working population, either directly 

through family support mechanisms or indirectly through taxation.” The effects of rising 

dependency ratios on future growth, savings, consumption, taxation, and pensions will be 

negative (Ingham et al., 2009). 

In examining how young, employed Black South Africans perceive black tax Msibi (2020), 

discovered that people pay black tax due to societal pressure or expectations on them. People 

may pay black taxes in order to avert their actions critically scrutinized by society. This may 

involve engaging in specific professions that society considers to be "prestigious" or it may be 

due to their social position. According to Chauke (2019), the research finding that held the 

opinion that people can feel obliged to pay black tax because they don't want to be harshly 

criticized by society was supported.  “It is so painful when you struggle to contribute, because 

then you become one of those people who no longer support their parents”. As a result, the 

degree of familiarity that Ghanaians have with their extended family forms a critical aspect in 

these transfers.  

 

 

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2.7.2 The Effects of Black Tax on family 
 

Stewart (2015) investigated how changes in financial status influenced the desire or ability of 

more distant family members to adhere to family material in terms of relation and asset sharing 

in a sample. According to a study done in North Carolina, the anxiety that comes with knowing 

that everyone is counting on you is evident. These black taxpayers persuade themselves that 

the daily remittances they must send to their family are reasonable and necessary. Nonetheless, 

it is all fun and games until they discover that if they keep sending these remittances, they will 

not be able to accomplish their financial goals, trapping them in a vicious cycle in which they 

will not be able to support anyone, let alone help themselves with their daily financial 

necessities (Ratlebjane, 2015). In numerous black cultures, black tax has become the norm; 

yet, it is vital to examine it in order to discover strategies to overcome it and to provide support 

to those who are struggling with it (Ratlebjane, 2018).  

Despite the fact that the definition is not a true tax, Mhlungu (2015) claims that individuals 

have a duty to financially help less fortunate family members due to the significant amount of 

social and generational inequality in the black community. 

Notwithstanding the benefits of black tax (local remittances) to receiving households, no 

empirical research on its effect on remitters' household welfare has been conducted in Ghana. 

This study is thus, a grey area which offers a novel empirical assessment of the phenomenon 

of black tax to address the gap in literature and policy on migration and local remittances.  

 

 

  

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CHAPTER THREE 

METHODOLOGY 

3.0 Introduction 

This study sought to investigate how prevalent, and burdensome black tax is, among local 

government service employees in Ghana. As such, to ascertain the research objectives and 

provide related answers to the questions under investigations, the chapter specifically, 

discusses the research method and pays particular attention in detail, regarding the approach it 

adopts, the study area and population with key characteristics, sample size, and sampling 

technique. The chapter further describe the data collection instruments and procedure, and 

detail analysis of research data and ethical considerations that was employed.  

3.1 Research Method  

The study takes a mixed method approach, combining both quantitative and qualitative 

methodologies at the same time to best fit the type of analysis required. The study referenced 

Johnson, Onwuegbuzie, and Turner's (2007) definition of mixed methods research, which is 

"the type of research in which a researcher or team of researchers combines elements of 

qualitative and quantitative approaches" (e.g., use of qualitative and quantitative viewpoints, 

data collection, analysis, and inference techniques). Mixed-methods research makes it possible 

for studies to be made both generalizable and comparative (Hupe, Hill & Buffat, 2015). 

3.2 Research Design  

 

In any study, there is a need to have a design, which helps in contextualizing the research in 

perspective to guide data collection and analysis (Ronger, 2012). In essence, the design impact 

and determines the sampling, data gathering, and analytic procedures to be used. To address 

the study's research questions, a mixed method approach was used in a contemporaneous 

triangular research design. The design helped to incorporate a variety of methods, including 

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the use of both quantitative and qualitative methodologies in a single study (Brannen, 2017). 

This method's merit The advantage of this approach is that it helpsin the researcher's acquisition 

of a more comprehensive and contextual understanding of the topic being studied. It also 

ensures that approaches have no inherent bias. According to Teye (2012), mixed method 

strategy is advantageous in achieving excellent research since it ensures that both quantitative 

and qualitative methods yield a better result than either of them would have produced. While 

the quantitative aspect of this paper emphasizes the use of statistics for analytical purposes, 

generalization and prediction, the qualitative focus which engages exploratory qualitative 

research strategy, and was concerned with the evaluation of attitudes, views, and behaviors 

(Kothari, 2004). According to Ormston, Spencer, Barnard, and Snape (2014), qualitative 

research design is used to investigate the background of events and conditions surrounding the 

phenomenon under investigation in greater depth. Participants were able to express themselves, 

their feelings, and how they reacted or managed their resources and family life. Thus, through 

triangulation, both approaches complemented each other, allowing this study to use the mixed 

method strategy. Furthermore, the real-world nature of this  unique problem needs a variety of 

interpretations in order to acquire a better understanding of the black tax issue and its 

consequences on local government employees' household disposable incomes.  

Nonetheless, this technique has a problem in that it is difficult to incorporate study findings. 

Each sort of question may evoke distinct responses from respondents, which are difficult to 

combine into a well-integrated interpretation. Open-ended questions are used in qualitative 

research, whereas quantifiable replies are elicited in quantitative research. As a result, different 

types of questions may generate varied responses from respondents, They are challenging to 

combine into an accurate interpretation (Greene, Caracelli & Graham, 1989; Krahn, Hohn & 

Kime, 1995). 

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3.3 Population 

A population, according to Mugo (2008), is defined as “a group of individuals, persons, objects, 

or items from which samples are obtained for measurement”. The target population for this 

study is all local government service employees (LGSE) in Metropolitan, Municipal, District 

Assemblies (MMDAs) in the Greater Accra Region of Ghana. . In this study, the focus was on 

senior to management level staff. The total population for the study was 190 employees. The 

population falls within senior to management level category of workers who have attained a 

high level of education with formal job receiving monthly incomes and therefore, are likely to 

send black tax to their extended family members residing in either rural or urban centres in 

Ghana. The study used Greater Accra as the case study for a number of reasons: it is a 

cosmopolitan area which accommodates the administrative capital of Ghana. LGSEs are 

government officials/ public servants who are perceived to be well off with a secured job and 

renumeration and are thus, likely to remit their extended families. The Greater Accra region is 

also a heterogeneous society where a lot of tribes are resident and therefore they have a lot of 

dependents in the other regions where remittances are sent. Additionally, the service staff 

operate, and are stationed in districts or close to rural communities which according to the 

literature are recipients of remittances from migrants in urban areas. Thus, the choice of them 

as the target population for this study gives a fair representation of a covered area for the 

research. 

3.4 Sample and Sampling Techniques 

A sample, according to Sanders, Lewis, and Thornhill (2007), is "a representative of a sub-

group of a larger population that is investigated in order to obtain statistical information about 

the population." It is made up of a small group of people or a subset of a bigger population. 

(Agarwal, Mozafari, Panda, Milner, Madden & Stoica, 2012). If significant traits such as age, 

gender, and status are distributed similarly in both groups, it is representative of the population. 

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Sampling, on the other hand, is usually done to allow for the extensive study of a subset of a 

population rather than the entire population (Denscombe, 2017).  

To sample local government workers for the study, a multi-stage sampling strategy including 

stratified and basic random sampling methods were used. Stratified random sampling is a 

sampling method in which a population is divided into smaller groups known as strata. 

Stratification is done based on members’ shared attributes or characteristics (Kothari, 2014). 

In this technique, the MMDAs were stratified into three groups: metropolitan, municipal, and 

districts. Greater Accra region hosts two (2) metropolitan assemblies, twenty-five (25) 

municipals and four (4) districts assemblies. Random sampling technique was used to select 

participating assemblies. To randomly select the assemblies, names of each group of assembly 

was written on pieces of paper and placed in three bowls (one for each group of assembly). The 

researcher randomly picked from the bowl one (1) metropolitan area, four (4) municipals and 

one (1) district. These are Accra Metropolitan, Adentan Municipal, Ga West Municipal, 

Kpone-Katamanso Municipal, Weija-Gbawe Municipal, and Ada East District Assemblies. 

The sample size was determined by using Raosoft®1  assuming a standard population size, 

95% confidence interval and 10% margin of error. This method of picking and selecting the 

target population's sampling units resulted in a suitable sample size of 180 respondents, with 

about 30 respondents from each district and an additional 10 respondents to account for non-

response.  

The technique, gave equal chance for each assembly within metropolitan, municipal and 

district to be selected. Also, because the population is homogeneous, this technique is 

advantageous in providing an unbiased and better estimation of the parameters (Singh & 

Masuku, 2014). 

                                                           
1 (www.raosoft.com/samplesize.html) 

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The purposive sampling technique was used to recruit respondents for answering the survey 

questionnaires. The researcher considered participants’ who showed enthusiasm and keen 

interest whilst answering the questionnaire to partake in the face-to-face interview. In all 190 

participants took part in the study.  

3.5 Data Collection Tools and Instruments  

3.5.1 Survey  

The study combined survey (Quantitative) and in-depth interviews (Qualitative) to answer the 

research questions. The use of quantitative methods helped answer research questions relating 

to when, where, and how events occur. The use of this research approach helped the researcher 

obtain large data sets, which are easily analysed and presented in tables, graphs or charts 

(Creswell & Creswell, 2017). The use of qualitative research also helped the study, which 

relates to the use of open-ended interviews to investigate social actors/persons in their natural 

contexts with the goal of understanding the individuals' experiences and opinions on the subject 

at hand (Kaplan & Maxwell, 2005). 

3.5.2 In-depth Interviews 

The study used an in-depth interview to solicit for answers on the prevalence and the burden 

of black tax in Ghana. Interviews are better suited for gathering such data as they use open-

ended questions to allow respondents respond to issues that best reflect the issues under study 

(Stewart & Shamdasani, 2014). In-depth interviews, according to Qu & Dumay (2011), “are 

an unstructured and direct method of gathering information in which a professional interviewer 

probes a single respondent to reveal underlying motivations, beliefs, attitudes, and feelings 

about the topic of inquiry.” This method enables the researcher to obtain both attitudinal and 

behavioral data from the respondent over a wide range of time periods (past, present and 

future). The interviewer has enough opportunity to probe the respondent and collect in-depth 

data, which is a unique feature of this technique. 

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According to Ritchie, Lewis, and Elam, (2003), semi-structured interviews present a flexible 

method of collecting data and allows for interaction between interviewer and respondents. 

Semi-structured interviews allow the interviewee the flexibility of probing to explore for deep 

understanding of responses. Interview provides interviewers with the chance to explore in 

detail, respondent-based issues, such as reasons, opinions, perceptions, feelings and beliefs that 

underlie the responses they proffer. 

Qualitative studies allow the researcher to explore the meaning from the perspective of their 

participants, in their natural settings. As McNabb (2015) points out, the greatest advantage of 

qualitative data is the richness of information it provides. As qualitative researchers also see 

understanding of various phenomenon or processes that shape meanings, they turn to employ 

different methods such as case studies, interviews and observations (Cunliffe, 2011). 

Qualitative studies allow participants own interpretation of the issue being studied to be 

captured (Queiros, Faria, & Almeida, 2017). It was reasonable to integrate both methodologies 

in the study due to the understudied issue of black tax and its influence on people's lives.  

3.5.3 Data Collection Instruments 

The interviews were carried out using a semi-structured interview guide. From A through E, 

the interview guide was divided into five sections. The demographic characteristics of the 

respondents were studied in part A, while the study's aims were addressed in sections B to E.  

Sections B to D were used for the in-depth interview, whereas sections E was structured to 

assess the factors that influence black tax. Both tools were pre-tested. This provided the 

opportunity to test the sensitivity of the questionnaire, wording, and accuracy completeness, 

skip patterns among others. The necessary revisions were made prior to data collection.  

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3.5.1.1 Questionnaire 

The study questionnaire was designed to obtain information about the intended purpose of 

black tax (local remittance) sent by local government service employees of MMDAs to their 

direct and indirect families, to ascertain the prevalent nature of black tax among employees of 

MMDAs, and to examine the extent of burden of black tax on the employees of MMDAs. The 

questionnaire was aligned with the objectives of the study.  

The researcher adopted both an open-ended and closed-ended questions to solicit responses 

from 190 respondents. In a closed-ended questionnaire, respondents are required to choose an 

answer from a set of responses provided by the researcher. Whilst the open-ended required the 

respondent to provide short answers. To the researcher, this type provides a greater uniformity 

of responses, which can easily be processed. To facilitate the data collection procedure, 44 

questions had been planned and used to solicit responses from the employees of the targeted 

population, (MMDAs). Questionnaires are useful in research, because they are able to capture 

a wide range of issues, they are flexible, easy to administer and analyze, simple to anonymize, 

and easy to visualize the data provided as well as put less pressure on respondents. This, in a 

way, served as the primary source of data collection. 

3.5.1.2 The Interview Guide 

The qualitative data collection utilized an interview guide, which was aligned with the 

objectives of the study with relevant research questions set out of review of literature The 

questions employed were semi-structured to allow for more explanations and modifications of 

the wording in the interview guide that permitted the respondents to express the understanding 

feeling and belief on the study area. The interviews were conducted during the participants' 

normal working hours, at their convenience, to ensure that the respondent was at ease and that 

maximal permission was obtained. In situations where the responses from respondents were 

not clear, follow up questions were asked to broaden the discussion and allowed for a more 

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appropriate response. Secondary data from reports especially (GLSS 7), published literature 

and documents obtained from research, and policy agencies were used. 

 

Respondents were asked to offer brief responses to questions on their marital status, education 

background, employment status, the number of children they had living with them, and their 

sexes, among other things, on a closed-ended questionnaire. Respondents were able to submit 

rapid and time-saving responses as a result of this. This process was utilized to get responses 

from the six responding Assemblies' senior officers. 

3.6. Validity and Reliability of Instruments  

The questionnaire and interview guide were presented to the researcher's supervisor for review 

in order to confirm the validity of the study. Bell (1999) defines dependability as the situation 

in which a text or technique consistently yields results that are similar. The interviewees were 

each given a one-on-one interview by the researcher in order to assure reliability. To assure 

accuracy, the proceedings were recorded and played again in front of the interviewers to ensure 

authenticity of the data collected. 

3.7 Data Collection and Data Handling  

The researcher pilot tested both the questionnaire and interview guide. This exercise allowed 

the researcher to determine whether participants comprehended the ideas utilized in the 

questionnaire, as well as the logical sequencing and flow of the questions and the average 

length of time taken to complete each questionnaire. Based on the pilot participants’ feedbacks, 

the questionnaire was slightly modified before the main data collection commenced.  For data 

collection, three enumerators and one supervisor were trained and assigned. One enumerator 

for two district, and the supervisor did the overall supervision. 

 

Prior to deployment of the enumerators, official letters introducing the researcher and the 

purpose for the field research was submitted for approval from the six assemblies. The 

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participants' consent was obtained before the interviews were audio recorded. This aided the 

analytic process and made it possible for the researcher to include every interview-related 

detail. The interviewer listened, paid attention and observed while guiding the respondents 

through a conversation until all of the critical topics in the interview guide were examined, as 

advised by Turner (2010). The researcher’s thoughts, ideas, and interpretations about what 

would be observed during the interviews were written in the field notes. According to Creswell 

et al., (2007), field notes helped the researcher to make sense of the data and added context and 

depth to the study findings during the data analysis. In all, one hundred and ninety (190) 

questionnaires were administered in this research. Teye (2012) remarks that a large sample size 

is deemed important in quantification and representativeness in quantitative studies because it 

advances a fair representation of populations for a thorough analysis and interpretation. 

  

The numerators synchronized their data after each day of the work, and this was crosschecked 

daily for completeness. Incomplete questionnaires were not included in the analysis.  Data was 

converted into Excel and SPSS, and cleaned before analysis and results interpretation. 

Duplication of data was checked and regularized.  

The qualitative data was audio recorded, and each session lasted about 45 minutes on average. 

The voice tape was transcribed verbatim into MS Word, ensuring accuracy while also allowing 

familiarization with the data and improving data thematic analysis. Each qualitative interview 

received a unique string identification consisting of the IDI (In-depth interview) and a serial 

number starting at 1. This was done to safeguard the respondents' identities even more. The 

unique identifier was used throughout the data analysis. A total of 25 in-depth interviews were 

conducted face-to-face.  

  

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3.8 Data Organisation, Consolidation and Analysis 

A review of accessible secondary data sources was conducted in order to gather insights and 

better comprehend the important topics. The analysis took into account completed surveys that 

were retrieved. With the quantitative technique, data was consolidated for each question and 

captured in a Microsoft Excel spreadsheet before being imported into SPSS, a Statistical 

Package for Social Scientists, utilized for computation after the questionnaires were computed. 

The information was then visualized in percentages, tables, and frequency distribution using 

simple descriptive statistical techniques. Comparative tables, pie charts, and graphs were also 

created and used to display and explain the results. 

In-depth interviews were transcribed, summarized, and classified according to the study 

objectives' numerous topic categories. After returning from the field, the coding began right 

away. Themes that surfaced throughout the data analysis were compared to earlier studies. 

Following that, data was applied to quantitative findings in various portions of the study, either 

to explain or to corroborate the findings. Thematic analysis, according to Braun and Clarke 

(2006), is effective for acquiring a thorough grasp of the social phenomenon under 

consideration. This analytic approach also allows the researcher to critically review latent 

themes as well as analyze logic and comprehension as expressed by the participants. As a result, 

the analyst was able to dig beyond the surface readings of stories to find patterns, differences, 

and connections to theory in order to gain a better understanding of the occurrences in question. 

This method of analysis was based on open coding, which entails dissecting, analyzing, 

comparing, conceiving, and categorizing data (Corbin & Strauss, 1990). This coding technique 

will lay out the path for the analysis, capturing all of the key parts of the research issue.  

Themes and sub-themes were organized around information patterns that allowed for the 

organization, description, and explanation of the data so that interpretations could be made, as 

described by Boyatzis (1998). To protect confidentiality and anonymity, all of the respondents' 

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personal information, including their names, contact information, and titles, was excluded 

during the coding process. Instead, the description was given to each interviewee individually.  

3.9 Ethical Consideration 

Ethical considerations in social science research are crucial as they ensure the rights and 

welfare of respondents. This study gave priority to ethical issues likely to emerge in conducting 

the research. All protocols in research were adhered to. Approval was sought from the three 

MMDAs and consent form explained to all respondents. Also, signatures were appended before 

formal interviews were conducted. In relation to analysis, the research paid maximum attention 

to data by thoroughly assessing responses in order to prevent falsification of data. Sources and 

methods used in obtaining and analysing data were clearly stated in the study. In addition, a 

reflection on positionality was made by the researcher so as to prevent any form of biases 

especially in interpreting results and discussing findings. All secondary data used in the study 

were duly acknowledged.  

3.10 Summary 

The data gathering technique and data analysis method were discussed in this chapter. It 

explained the various processes that were followed, from the preparation of data gathering 

equipment through the methods for data processing. A full overview of the qualitative and 

quantitative methodologies used to acquire the data, as well as the preparation of tools, was 

also provided. The chapter ended with a description of the data consolidation procedure as well 

as the data analysis methodologies employed in the study. 

 

  

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CHAPTER FOUR 

RESULTS, ANALYSIS AND DISCUSSIONS 

4.0 Introduction 

The chapter details the demographic characteristics of respondents and discusses the extent to 

which black tax is prevalent. It uses summary statistics, tables, charts, and thematic techniques 

to provide empirical data and findings from both field surveys and in-depth interviews in order 

to better understand the experienced realities of local government personnel to the black tax 

phenomena. Factors that might influence black tax were explored through Exploratory Factor 

Analysis. Some factors were identified from 26 variables to influence/ shape local remittances. 

4.1 Sample and Demographic Characteristics of Survey Respondents 

The study incorporated both quantitative and qualitative methods through mixed method 

research design. For the structured questionnaire survey, out of the 215 questionnaires 

administered, 190 local government service employees responded from the six (6) districts 

within the Greater Accra region. These comprised 41(21.6%) from Accra Metropolitan 

(AMA), 26 (13.7%) from Adentan Municipal Assembly (AdMA), 44 (23.2%) from Ga West 

Municipal Assembly (GWMA), 28(14.7%) from Kpone-Katamanso Municipal Assembly 

(KKMA), 24(12.6%) from Weija-Gbawe Municipal Assembly (WGMA), and 27(14.2%) from 

Ada East District Assembly (AEDA).  

In-depth interviews were conducted for purposively selected senior staff (including top 

management staff) under the cluster groupings of the six district assemblies. The findings are 

presented and discussed together with the survey results. 

The demographic features of the respondents interviewed are also presented in this part, as 

these qualities have an impact on the respondents' financial situation, dependents, and ability 

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to send remittances. These included personal information on respondents' Assembly, age, 

gender, religion, race, and marital status as given in Table 4.1.  

As shown in Table 4.1, ninety-nine (99) of the total number of respondents for the structural 

questionnaire survey were females (52.1%), whereas ninety-one (91) were males (47.9%).  

 

Ages of Respondents 

Due to the reason that a person's vulnerability to paying black tax rises as they get older, it was 

critical to assess the age range of remitters in the research districts. The survey found that 181 

(95.3 percent) of the 189 respondents were between the ages of 18 and 50, i.e., between youth 

and middle-aged people, with the majority (18-35 years) falling into the young category. 

However, nine (4.7%) of them were approaching the formal retirement age (above 50 years). 

Marital Status of Respondents  

Results of the study showed on the marital status that more than half, 98 (51.6%) of the 

respondents were single, whilst 85 (44.7%) were married, with only a few either co-habiting 4 

(2.1%) or divorced 3 (1.6%). This indicates that quite a number of respondents (either married 

or single) may likely send remittances their external family members. The study which makes 

reference to Pickbourn (2016) takes a theoretical approach to conjugal contracts and remitting 

behaviour, suggesting that, while the conjugal contract creates responsibilities for spouses, men 

and women are also active agents who determine whether or not to remit or how to spend 

remittances based on home structure, employment status, income levels, and experience. Adult 

children's contributions to the extended family in the form of remittance transfers are also 

significant as a result of their single status. 

Ethnic Background and Religious Affiliation of Respondents 

Regarding the results on respondents' ethnic background and religious affiliation as presented 

in Table 4.1, overall, 54.2% of respondents were Akans, 17% Ewes, 17% Ga-Adangbes and 

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11.1% and Northerners. Together, these four ethnic groups constituted nearly 100% of 

respondents. This is consistent with findings by Ghana Statistical Service (GSS) that in Greater 

Accra region, 34.7% of households are Akan, 32.8% Ga-Adangbes, and 18.6% Ewes (GSS, 

2015). 

Regarding religious affiliation of the respondents, majority (92.6%) were Christians, with 

Muslims constituting 6.8% and one respondent (0.5%) indicating as a traditionalist. This 

corresponds with results of Ghana Statistical Service (GSS, 2015) which estimates 75.8% 

Christian population in Ghana. As evident in Kelly and Solomon (2009), religion has an 

immense effect on remittances sent to relatives and friends back home. Hence, there is a 

likelihood of respondents to remit based on their religious values on giving. 

  Table 4.1: Demographic Characteristic of the Respondent 

Variable  Characteristics Frequency Percent 

MMDA Accra Metropolitan  41 21.6 

 Ada East District 27 14.2 

 Adentan Municipal 26 13.7 

 Ga West Municipal 44 23.2 

 Kpone-Katamanso Municipal 28 14.7 

 Weija-Gbawe Municipal  24 12.6 

    

Age 18 – 25 52 27.4 

 26 – 30 40 21.1 

 31 – 35 37 19.5 

 36 – 40 21 11.1 

 41 – 45 19 10.0 

 46 – 50 12 6.3 

 51 – 55 6 3.2 

 56 – 60 3 1.6 

    

Gender Male 91 47.9 

 Female 99 52.1 

    

Religion Christians 176 92.6 

 Muslims   13   6.8 

 Traditionalist    1   0.5 

    

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Ethnicity Akan 103 54.2 

 Ewe 33 17.4 

 Ga-Adangbe 33 17.4 

 Northerner 21 11.1 

    

Marital Status Single 98 51.6 

 Married 85 44.7 

 Co-habiting 4   2.1 

 Divorced 3   1.6 
 

Source: Field Survey (November 2021) 

 

Educational Background of Respondents  

Educational attainment is an important determinant that most local government employees 

possess; this perhaps, is what enhancing their reputation as public servants. In addition, 

according to Magubane (2016), these qualifications show respondents’ capability of being 

gainfully employed as well as providing both social and economic support to their loved ones. 

Results of respondents’ highest educational attainment projected a typical picture of the public 

service trend for qualification towards a senior officer level grade as illustrated in Table 4.2.  

A large proportion of respondents reported they had tertiary level, at 152 (80%). Of this, half 

114 (60.0%) of the respondents polled indicated they had First Degree, 36 (18.9%) had 

Masters’ Degree, whilst 2 (1.1%) had PhD. The rest had either professional certificate 14 (7.2), 

other diplomas 12 (6.3%), or secondary 12 (6.3%) levels of education.  

 
 

 Table 4. 2: Educational Background of Respondent 

  Level  Frequency Percent 
 

 PhD 

Master's Degree 

First Degree 

2 

36 

114 

1.1 

18.9 

60.0 

 Professional Certificate 

(Nursing, teaching, Diploma or 

Certificate) 

14   7.4 

 Other Diplomas (HND, DBS, 

etc.) 

12    6.3 

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 Secondary (A-Levels, O- 

Levels, SHS, Technical/ 

Vocational) 

12    6.3 

Source: Field Survey (November 2021) 

 

The salaries of the respondents ranged between GHc750.00 and a little over GHc5250.00. Most 

of them had a monthly salary below or up to GHc2750.00 where 52(30.8%) received between 

GHc750.00 – GHc1250.0, 50(29.6%) between GHc1751.00 – GHc2250.00, and 28(16.6%) 

between 2251.00 – GHc2750.00. However, 3(1.8%) received a monthly salary of more than 

GHc5250.00 (Table 4.3). 

                Table 4. 3: Monthly Salary of Respondents (in GHc)2 

Amount (GHc) Frequency Percent 

  750.00 - 1250.00 52   30.8 

1251.00 - 1750.00 13     7.7 

1751.00 - 2250.00 50   29.6 

2251.00 - 2750.00 28   16.6 

2751.00 - 3250.00 11     6.5 

3251.00 - 3750.00 5     3.0 

3751.00 - 4250.00 3     1.8 

4251.00 - 4750.00 3     1.8 

4751.00 - 5250.00 1     0.6 

Above 5250.00 3     1.8 

                  Source: Field Survey (November 2021) 
 

The gender of the respondents' household heads was investigated further, and the results are 

presented in Table 4.4. To see if there was a link between the gender of the respondent and the 

household head, a chi-square test with a 5% level of significance was used. 

 

 

 

 

                                                           
2 1 USD was equivalent to GHS6.1422 (Ghanaian Cedis) as of 30th November, 2021. 

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    Table 4.4: Gender and Household Head 

Household Head Males Female Total p-value 

 N % N % N % 

Father 25 27.5 35 35.4 60 31.6 0.000 

Friend 0 0.0 1 1.0 1 0.5 0.000 

Husband 0 0.0 33 33.3 33 17.4 0.000 

Mother 6 6.6 7 7.1 13 6.8 0.000 

Self 58 63.7 23 23.2 81 42.6 0.000 

Sibling 2 2.2 0 0.0 2 1.1 0.000 

Total 91 100.0 99 100.0 190 100.0 0.000 

     Author’s computation using field data, November 2021 
  

From Table 4.4, majority 81 (42.6%) of the respondents were the head of their households, of 

which majority 58 (71.6%) were males. Also, 60 (31.6%) of the respondents had their father 

(majority, 35, were females) as household head, whereas for 13 (6.8%), it was their mother 

(majority, 7, were females). Furthermore, all the married females (33) had their husbands as 

the head of household.  

It was also discovered that there is a link between gender and the head of the home (p-value of 

0.000 is less than 5 percent level of significance considered). As a result, one's gender 

determines his or her status in the family in relation to the family head. This is to be anticipated, 

given patriarchal norms that place men in charge of the household. Similarly, males lead a 

bigger proportion of households in Ghana (GLSS, 2015). 

The number of dependents (including children, spouse, and other relatives) was further 

explored with respect to gender. Again, chi-square test with 5% level of significance was 

performed to ascertain if there is an association between the gender of respondent and the 

number of dependents. This is discussed in Table 4.5. 

   Table 4.5: Gender and the Number of Dependents (children, spouse, other relatives) 

Dependents Males Female Total p-value 

 N % N % N % 

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1 – 2 14 27.5 18 35.3 32 31.4 0.495 

3 – 4 24 47.1 20 39.2 44 43.1 0.495 

5 – 6 7 13.7 10 19.6 17 16.7 0.495 

Above 6 6 11.8 3 5.9 9 8.8 0.495 

Total 51 100.0 51 100.0 102 100.0 0.495 

    Author’s computation using field data, November 2021 

According to Table 4.5, 102 (51 men and 51 females) of the respondents said they had 1 to 6 

or more dependents. The majority of those polled had one to four dependents. Nonetheless, the 

proportion of dependents between 1 – 4 for males (74.5%) is the same for females, though there 

was a slight difference in the number of dependents between 1–2 and 3–4. This is an indication 

that the gender of an individual is independent of the number of dependents. This was 

confirmed by the chi-square test (p-value of 0.495 is greater than the 5% significance level). 

Therefore, one’s gender may not likely influence the number of dependents. Interestingly, 

results on the demographic information of respondents from qualitative interview were no 

different from that of the quantitative. Thus, the merit of corroboration in mixed methods 

research is evinced (Du Plessis & Majam, 2010).   

4.2 Nature and Prevalence of Black Tax 

This section of the study presents results from exploration of the widespread nature of black 

tax among local government service employees. That is, examined respondents’ dependents 

outside the nuclear family, regularity of provision of support and reasons for their dependency. 

This study aimed at finding out how pervasive black tax is among local government employees. 

Which Ratlebjane (2015) defined as the extra money spent each month by black professionals 

to support their non-nuclear families. Similar trends may be seen among local government 

personnel who live and work in the six districts that make up the Greater Accra region, as seen 

below.  

 

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4.2.1 Prevalence of Black Tax  

 
                         Figure 4.1: Respondents with Dependents outside their Nuclear Family 

 

It was noted that the majority 132 (69.5%) of the respondents had dependents outside their 

nuclear family and the relations with the dependents’ included parents, siblings, cousins, 

nephews, nieces, grandparents, other extended family members, in-laws (father, mother, 

brother, sister in-laws), and friends (Figure 4.1).  

The number of dependents was further explored and is presented in Table 4.6. 

 Table 4.6: Number of Dependents Outside the Nuclear Family 

  Author’s computation using field data, November 2021 

 

Yes

132(69.5%)

No

58(30.5%)

Dependents Frequency Percent 

One 19 20.9 

Two 27 29.7 

Three 25 27.5 

Four 8 8.8 

Five 12 13.2 

Total 91 100.0 

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Results from the survey, as indicated in Table 4.6 shows that, the number of dependents of the 

respondents outside their nuclear family ranged from one to five, with most 78.0% (20.9% have 

one, 29.7% have two, and 27.5% have three) having dependents between 1 – 3.  However, 20 

(22.0%) have between 4 – 5 dependents, with 8 (8.8%) having four, and 12 (13.2%) having 

five. The study further revealed that the majority 114 (60.3%) of the respondents sent black tax 

to people outside their household of which majority budgeted for. Interestingly, majority 65 

(57.0%) of the recipients of the local remittance/black tax reside in urban areas. This is line 

with the finding that migrants transfers can flow in both ways, but it is largely from urban to 

rura