“Africa’s Tax Agenda”

… Shaping the future of tax administration for sustainable development through digitalization, collaboration, and growth

By Francis Maingaila ♥️

Lusaka, Zambia24 – (31-07-2024) – The 5th Heads of Tax Administrations Master Class Conference, taking place in Lusaka and organized by the African Tax Administration Forum (ATAF), has brought together African leaders under the auspices of the Zambia Revenue Authority (ZRA) to discuss strategies for improving revenue collection for the benefit of their citizens.

Mr. Davies Chisenda, Permanent Secretary for Economic Management and Finance at the Ministry of Finance and National Planning, delivered a speech on the future of tax administration in Africa.

He emphasized the role of digitalization in developing efficient and resilient tax systems amid the continent’s challenges, stating, “The digital era offers unprecedented opportunities for enhancing tax compliance and broadening our tax bases.”

Chisenda highlighted the impact of technological advancements on traditional commerce, urging African tax authorities to adapt swiftly.

He addressed issues such as widespread poverty, mounting debt crises, and inadequate infrastructure, and stressed the need for robust and adaptive tax systems to support national budgets.

“We cannot ignore the adverse effects of climate change, such as droughts impacting hydroelectric power generation and food production,” he noted.

“Resilient tax systems are not just about survival but about thriving amidst adversity,” Chisenda remarked, linking effective tax administration to economic stability.

He called for comprehensive digitalization policies to create efficient taxation environments, adding, “The rapid pace of digitalization demands that we stay ahead, constantly innovating and adapting our tax systems.”

Chisenda urged African tax administrations to share best practices and develop innovative digital solutions collectively.

“Together, we can overcome the hurdles and set new benchmarks in tax administration,” he asserted.

He commended ATAF’s commitment to defending African interests globally and encouraged member countries to support ATAF in crafting solutions tailored to the continent’s unique taxation challenges.

“ATAF stands as a beacon of hope, guiding us towards a future where African tax systems are models of efficiency and resilience,” he concluded.

The conference continues to emphasize the importance of leveraging technology, fostering collaboration, and supporting ATAF’s initiatives to navigate socio-economic hurdles and pave the way for sustainable development.

The ATAF Heads of Tax Administration Masterclass, hosted by the ZRA, has commenced, providing a platform for tax administrators across Africa to strategize on enhancing domestic revenue mobilization.

Over the next two days, participants will engage in candid discussions under Chatham House Rules to gain insights, form networks, and address key issues in tax administration.

Commissioner General Dingani Banda expressed gratitude as Zambia hosts the event for the first time.

He highlighted the significance of the conference’s theme, “Digital Transformation for Effective Revenue Collection and People-Oriented Leadership,” and its relevance as many African tax administrations integrate technology into their revenue mobilization processes.

“This theme will help us understand the impact of digital transformation on revenue collection, share success stories and challenges, and develop practical strategies for integrating digital tools with human capital,” Banda stated.

Banda noted that African countries face challenges in revenue collection, with tax-to-GDP ratios averaging 15.6% in 2021, compared to the OECD’s 34.1%.

He attributed this disparity to differing levels of digitalization, stressing that embracing digital transformation can enhance the efficiency and accuracy of tax operations.

“Digital transformation is not only about technology—it is about people. As leaders, we must foster a culture of innovation, collaboration, and continuous learning within our organizations,” Banda said.

He advocated for investing in human capital, ensuring staff are equipped with necessary skills and knowledge to adapt to digital advancements, and engaging with taxpayers transparently and empathetically.

Banda also called for developing home-grown digital solutions to avoid reliance on expensive private ICT vendors and to facilitate ownership and adaptability of tax systems to changing laws.

He emphasized the importance of building ICT capacity within the continent.

Banda thanked ATAF and its members for the opportunity to host the Masterclass and encouraged participants to explore Zambia during their stay.

Rogan Worf, ATAF Executive Secretary, expressed appreciation for the ZRA’s hospitality and facilities.

He acknowledged the newly appointed commissioners-general from Rwanda, Sierra Leone, Seychelles, Ghana, Lesotho, Gabon, Liberia, and Tanzania, emphasizing the Masterclass’s role in facilitating peer interaction and exploring solutions.

“This year’s Masterclass comes at a time when a great deal is happening in the world, and Africa finds herself at the core of many discussions,” Worf stated.

Worf highlighted the global reassessment of financial architecture and the central role of tax in development, pointing out the need for innovative approaches in revenue administration.

“The rapid expansion of e-commerce and digital platforms in Africa presents both opportunities and challenges for tax administrations,” he explained.

Worf noted Africa’s significant potential, driven by its young and large population, increasing internet penetration, and smartphone usage.

He recounted a discussion with a South African bank head about the shift from credit cards to mobile money wallets, underscoring the private sector’s recognition of technology’s role in streamlining transactions.

He emphasized the developmental agenda’s prominence, with a focus on achieving a minimum 15% tax-to-GDP ratio for African countries to meet development targets by 2063.

Worf urged delegates to align strategic visions with technological advancements and highlighted that the upcoming Financing for Development Conference in 2025 will further spotlight these needs.

“Discussions will tackle challenges such as access to IT tools, skills training, and simplifying tax systems to build trust among lower-income taxpayers,” he explained.

The Masterclass is set to be a critical forum for shaping the future of tax administration in Africa, leveraging technology to drive development and improve tax compliance across the continent.

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