AU, ATAF PUSH FOR STRONGER TAX SYSTEMS TO BOOST AFRICA’S REVENUE

The African Union (AU) and the African Tax Administration Forum (ATAF) are stepping up efforts to strengthen tax systems across the continent, with a focus on improving domestic revenue mobilisation and reducing Africa’s dependence on external financing for development. The initiative comes amid growing pressure on African governments to find sustainable ways of funding infrastructure, social services and economic development.

The two organisations are seeking greater cooperation among African countries to improve tax administration and address weaknesses that allow revenue to be lost through tax evasion, illicit financial flows and other gaps in the collection system. Stronger tax institutions, better use of technology and improved coordination among tax authorities are expected to help governments increase the amount of revenue generated internally.

The push also reflects concerns over the financial challenges facing many African countries, including rising debt obligations and limited access to affordable international financing. By improving domestic tax collection, governments could have more resources available for critical sectors such as education, healthcare, infrastructure and social protection without relying heavily on borrowing or foreign assistance.

The AU and ATAF are also expected to promote the sharing of knowledge, technical expertise and best practices among member states. Greater collaboration could help countries modernise their tax systems, improve compliance and develop policies that ensure businesses and individuals contribute fairly to national development while maintaining an environment that supports investment and economic growth.

The organisations believe that stronger and more efficient tax systems are essential to Africa’s long-term economic independence. The initiative is therefore expected to support efforts to build more transparent, effective and sustainable revenue systems capable of financing the continent’s development priorities and reducing vulnerabilities linked to external funding.