Revenue Mobilization in Africa Improves, says report

13 Oct 2017
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Addis Ababa October 13/2017 The Mobilization of domestic resource has been improving in Africa, according to the new data from Revenue Statistics in Africa 2017.

 The report was released in Addis Ababa on Thursday at a meeting of tax and Finance officials from 21 countries hosted by the African Union Commission.

 The average tax-to-GDP ratio for the 16 countries covered in this second edition of the report was 19.1 percent in 2015, an increase of 0.4 percent compared to 2014.

 According to the report, every country has experienced an increase in its tax-to-GDP ratio compared to the year 2000 with an average rise of 5 percent.

 Revenue statistics in Africa 2017 includes revenue data for twice as many countries as the first edition, providing comparable data on tax and non-tax revenues for 16 participating countries.

 Cape Verde, Cameroon, Democratic Republic of Congo, Cote d`Ivoire, Ghana, Kenya, Mauritius, Morocco, Niger, Rwanda, Senegal, South Africa, Swaziland, Togo, Tunisia and Uganda, are the countries covered by the report.

 In 2015, taxes on goods and services were the largest contributor to total tax revenues in African countries, 57.2 percent on Average, mostly in the form of Value Added Tax (VAT) followed by taxes on income and profits -32.4 percent.

 As a percentage of GDP, total non-tax revenues were lower than tax revenues in all the 16 African countries, although the amounts varied considerably due to wide disparity in natural resource revenues and international donation, it was indicated.

 The report  aims to contribute to improve understanding and monitoring of domestic resource mobilization, a priority of the 10-year implementation plan of Agenda 2063, the UN Addis Ababa Action Agenda on Financing for Development and Sustainable Development Goal.

 The publication is jointly undertaken by the OECD Centre for Tax Policy and Administration and the OECD Development Centre, the African Union Commission and the African Tax Administration Forum with funding by the European Union.

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