Taxation in Africa: Insights from the 2024 ATAF Annual Meetings

The 2024 African Tax Administration Forum (ATAF) Annual Meetings, held in Kigali, Rwanda, brought together close to 600 participants, from Ministries of Finance, African Tax Administrations, Members of Parliament, and tax policy experts. This year’s gathering focused on enhancing Domestic Resource Mobilization (DRM) in Africa, aligning with the theme  of preparing revenue administrations for the dynamic global landscape.

Strengthening Partnerships for Enhanced Capacities for Policy-Making

HAUS and tax policy experts from Finland participated in the meetings as part of African-Finnish Partnerships on Taxation Capacity in Africa programme funded by the Ministry of Foreign Affairs of Finland. The programme aims to support domestic resource mobilization by strengthening the taxation capacity of developing countries and enhancing their position in global tax policy.

Exploring Key Themes for Innovative Tax Solutions

Speakers and participants engaged in in-depth discussions concerning the future of revenue administrations in Africa. Acknowledging the diverse challenges faced by tax systems across the continent, innovative approaches and best practices for enhancing tax efficiency and effectiveness were explored during the meetings. Based on the discussions during the event, the following four themes highlight the emerging and essential areas for development and collaboration within African tax administrations:

1. Data-driven digitalization of Tax Administrations: The meetings stressed the critical need for digital transformation in tax systems, emphasizing the integration of data and technology to enhance efficiency and effectiveness. This includes leveraging data analytics and artificial intelligence to improve tax collection, combat evasion, and optimize resource allocation, ultimately leading to improved domestic resource mobilization.
2. Broadening the Tax Base in a changing economy: Discussions centered on expanding the tax base to include currently under-taxed sectors. This involved exploring strategies to effectively taxing the informal economy, a significant portion of many African economies, and the digital economy, which presents unique challenges for tax collection.
3. Strengthening international tax cooperation and transparency: The meetings highlighted the importance of improved information exchange between African countries and increased international collaboration to combat illicit financial flows and ensure fair tax practices globally through active engagement of African nations within global tax standard-setting bodies, such as OECD and UN.
4. Adapting tax policies and strategies to Africa’s evolving demographics: Recognizing the unique demographic shift in Africa, with a rapidly growing young population, the meetings addressed the implications for tax administrations. Developing strategies to engage the younger generation effectively and equitable, leveraging their comfort with digital interactions to improve tax compliance.

Continued commitment to support in transforming African Tax Systems

In conclusion, the 2024 ATAF Annual Meetings reinforced a shared commitment to transforming tax systems across Africa. The African-Finnish Partnerships on Taxation Capacity in Africa programme looks forward to strengthening ongoing collaboration with ATAF and other African partners to foster innovation and promote inclusive growth through enhanced domestic resource mobilization on the continent.