AU, ATAF Seek Stronger Tax Systems to Curb Revenue Leakages in Africa

The African Union Commission (AUC) and the African Tax Administration Forum (ATAF) have agreed to deepen institutional cooperation to strengthen tax systems and curb revenue leakages across the continent.

The agreement was reached during a high-level meeting at the African Union Headquarters in Addis Ababa, Ethiopia, focusing on developing African-led strategies to enhance domestic resource mobilization.

Both organizations emphasized the need for African countries to better utilize existing mechanisms, such as the Agreement on Mutual Assistance in Tax Matters, to facilitate the exchange of taxpayer information, tax recovery, and joint examinations.

They also highlighted the importance of strengthening Africa's tax treaty network using the ATAF Model Double Taxation Agreement to ensure tax treaties protect the revenue interests of member states while preventing double taxation.

Special attention was drawn to hard-to-tax sectors and the extractive industries, where issues such as valuation disputes, complex cross-border transactions, and limited information access often lead to significant revenue losses.

AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Albert Muchanga, represented by Director of Economic Policy and Sustainable Development, Dr. Patrick Ndangana Belobe, welcomed the progress made through the partnership and urged sustained efforts to boost national fiscal capacities.

The AUC and ATAF announced plans to finalize the renewal of their Memorandum of Understanding and outline a detailed multi-year work plan covering tax policy, treaty negotiations, mutual assistance, and private-sector engagement.