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Prosper Ndlovu, [email protected]

CONCERTED efforts are required towards enhancing domestic resource mobilisation (DRM) capacities of African countries including embracing technology and digital solutions to improve effectiveness and efficiency of tax administration to help the continent bridge the estimated US$402 billion development financing gap, African Tax Administration Forum (ATAF) executive secretary, Mr Logan Wort, has said.

Further interventions such as tackling illicit financial flows (IFFs), and enhancing productivity in Africa and promotion of intra-African investment are also critical in transforming the continent’s economy, he added.

Mr Wort said this on Tuesday in Kigali, Rwanda, in official remarks at the ATAF Annual General Meeting, which is being attended by regional and global tax experts, policy makers and stakeholders.

This year’s Annual General Meeting theme: “preparing for the future: Revenue administration in a dynamic global landscape” and provides delegates opportunity to reflect, discuss and agree on practical strategies that tax administration should embrace in ensuring that they adapt to the challenges and opportunities of the digital age and the emerging global issues.

This include the need to address the debt crisis in many African countries, the geopolitical conflicts and tensions, the changing political landscape, the considerations for enhancing equality and fairness in tax system, the need to promote gender equality, the climate and environmental considerations, the shift in the global tax governance with the United Nations now playing a more central role.

“These pertinent discussions are coming at a time when it is clear that the continent faces significant financing gap to achieve the UN Sustainable Development Goals and the African Agenda 2063,” said Mr Wort.

“According to the United Nations 2024 Report on Financing for Sustainable Development, financing gap for developing countries has increased to about USD 4.0 trillion every year.  Further the African Economic Outlook, 2024 report, by the African Development Bank, the annual financing gap for African countries is estimated to be $402.2 billion.”

In view of these challenges, he said ATAF continues to invest heavily on how to address these, with special attention on the enhancement of DRM and addressing IFF.

“It is evident that we need to work together to enhance domestic resource mobilisation of African countries if Africa is to meaningfully finance its social economic development,” said Mr Wort.

“We are convinced that embracing technology and digital solutions in tax administrations is central to the attainment of this objective.

“This, together with targeted strategies for tax base expansion, effective use of exchange of information and tax transparency, sustained capacity building on transfer pricing and international tax, effective taxation of the digital economy, exploring new taxing opportunities such as environmental and climate issues, health and tobacco taxes, should assist African countries to enhance tax-to-GDP ratio in the coming years.”

Mr Wort said ATAF was ready to work closely with the other Pan-African organisations to advocate for more effective and sustainable ways for financing for development during the 4th Financing for Development Conference in 2025.