19 Years of Black Tax: A Black Founder's Point of View

I've been writing this article about Black Tax for quite a while. I think about this topic a lot because I’ve been paying Black Tax regularly since I was 17. As I approach my 36th birthday, I’ve been paying it for 19 years. Do I like paying it? No. Do I pay it consistently? Yes.

For those unfamiliar with the term, Black Tax is an unofficial financial obligation that many people of African descent, especially those in the diaspora, have toward their families. It’s the money we send back home to support our parents, siblings, extended family, and sometimes even distant relatives. The reasoning is simple: because we have access to better economic opportunities, we are expected to share our wealth with those who don’t.

Unlike traditional taxes, this obligation isn’t enforced by law but by love, expectation, and responsibility. For many, it’s a way to uplift families and repay the sacrifices of parents and relatives who invested in their education or upbringing. However, it can also be a double-edged sword, shaping career choices, limiting wealth accumulation, and adding unique pressures to those tasked with carrying their families forward.

Warning - the rest of the article may be triggering. This is your cue to stop reading if you are easily offended.

My Personal Experience

When I first attempted to start a business, I quickly realised the challenges of not having a steady salary. I was young and naive, unfamiliar with the complexities of entrepreneurship, running a profitable business, or raising capital. I was an entrepreneur for about six months before returning to full-time employment. One of the main reasons? Responsibilities beyond my immediate needs.

I don’t have children, so my expenses were manageable. But just like I couldn’t tell my landlord I wouldn’t pay rent one month, I couldn’t tell my parents that I wouldn’t send money. That was never an option. Conversations about financial support were always tricky, and my first attempt at entrepreneurship ultimately failed because, in addition to my lack of experience, I couldn’t afford to take the risk.

As an entrepreneur without a consistent salary, paying my fair share was challenging last year when I first attempted to write this article. I tried to explain it, but I always got: "Why don’t you go back and get a job? You are very qualified." I’m sure many entrepreneurs can relate, especially in the early days when funds are not flowing consistently. I’m fortunate to have hard-working siblings, meaning their contribution has subsidised mine as the eldest, which gives me a lot of joy.

As a full-time entrepreneur, I've succeeded at setting boundaries while still contributing financially to my family. I support my father’s upkeep every month, but when my mother recently requested a similar monthly payment, I politely declined. That decision hasn’t been easy - I’m frequently reminded that I no longer care for her like I used to. I still help ad hoc because there is always something to pay for every other month.

We also support my youngest brother’s education. I have three younger brothers, and the youngest is still in school, so we pay for his private education. Every month, I’m momentarily shocked by these financial commitments, as if I’ve forgotten they exist, only to be reminded when the payments are due.

Supporting my father feels like a necessity - he’s elderly, unemployed, and has no other source of income. Contributing to my brother’s education also feels like an investment, a way to secure his future. Education changed my life, and I believe in paying it forward. But beyond that, I struggle with other financial obligations - funerals, immediate and distant relatives needing help, and unexpected requests. I know I’m not alone in feeling this way.

The Need to Break the Cycle

I firmly believe that the Black Tax should stop with our generation. If I hadn’t paid Black Tax for 19 years, that would have been a significant amount of money—money I could have used to invest, build, and grow. I believe Black Tax is one of the reasons we struggle to accumulate wealth.

Many people push back against this idea. They argue, "How dare you not repay your parents for everything they did for you?" I frequently get reminded of my parents' sacrifices, and I’m often accused of being ungrateful. But I don’t think pushing against paying Black Tax is a sign of ingratitude. Instead, it highlights a deeper issue: our parents were not adequately prepared for their financial futures. I want to point out that many of our parents live on a continent that, in many ways, is regressing - Africa has happened to some of them. Not all, but some.

Parents choose to bring children into this world and are responsible for providing for them. Raising children should not be seen as an investment that must yield financial returns. Instead, we should encourage a culture of paying it forward rather than paying it back.

The Economic Impact

Beyond the personal burden, I believe Black Tax contributes to a larger economic issue. In many families, it creates a sense of entitlement. If money arrives regularly from children abroad, there’s little incentive for those back home to be productive. This cycle reduces economic activity on the continent and discourages entrepreneurship among those who have the capacity to create jobs and build businesses.

If we stopped Black Tax, we could see a surge in productivity. More people would feel empowered to take risks, start ventures, and invest in wealth creation. Those back home would also need to become more self-sufficient, leading to a more sustainable economic future.

Of course, this is easier said than done. Emotional ties, cultural expectations, and deep-seated beliefs make it difficult to break free from Black Tax. But I believe a world without this financial obligation is possible—a world where we can build wealth collectively without emotional blackmail and misplaced guilt.

Final Thoughts

If we want to break the cycle, we need to start rethinking how we support our families. We should shift from individual financial rescue missions to building structures that help our families thrive without relying on one person.

That could mean investing in businesses instead of just sending money. We tried this, but it hasn’t worked in the past. Maybe it means setting boundaries and having difficult conversations. But one thing is clear: if we keep this system going, we’ll always be running in place, never moving forward.

For now, my siblings and I remain our parents’ pension, and we are grateful to be supporting them. Nonetheless, I hope to see the end of Black Tax in my lifetime.

Thank you for reading.

I’m currently building Borderless, the infrastructure for diaspora investment communities, for which I’m raising a pre-seed. I also co-founded HoaQ, the largest network of African diaspora angel investors, and helped launch Diaspora House, a community of diaspora real estate investors. I’m active on LinkedIn, so let’s connect there.