Assessement of the Impact of Digital Economy on Revenue Generation in Rwanda (Case Study: Musanze)

The digital economy has emerged as a transformative force in many developing countries, including Rwanda. This study aims to assess the impact of the digital economy on revenue generation in Musanze, Rwanda, by focusing on three key objectives, the study employs a mixed-methods approach, combining quantitative data analysis and qualitative interviews collected using Kobo toolbox with relevant Stakeholders. R-Studio was used to generate descriptive analysis as well inferential statistics for models. The research evaluates the revenue generation trends in Musanze the adoption of digital technologies. Additionally, it investigates the extent to which the cashless economy has influenced revenue collection processes, the growth of e-commerce sales, and the implications of ICT infrastructure taxation on revenue generation. The findings of this study provide valuable insights into the evolving landscape of revenue generation in Rwanda’s digital economy, specifically in the Musanze region. This study found that there is a positive relationship between adoption of cashless economy and revenue generation with the p-value of 0.014, the adoption of E-commerce sales has increased the revenue since the p-value was 0.004 and finally utilization of adequate ICT infrastructure has increased revenue with p-value 0.03. It aims to inform policymakers, businesses, and the government on the potential benefits and challenges associated with the digital transformation in revenue collection. Ultimately, this research contributes to the broader understanding of how the digital economy can shape fiscal policies and revenue collection strategies in emerging economies like Rwanda.