Africa Can Generate $469bn Annually Without Tax Hikes, Says AfDB

 By Kehinde Awosina 





The African Development Bank (AfDB) has stated that African countries can generate an additional $469 billion annually without raising tax rates, provided governments strengthen revenue collection systems, improve transparency, and curb financial leakages. 


According to the bank, the continent's challenge is not necessarily low tax rates but inefficiencies in tax administration, widespread tax evasion, weak enforcement mechanisms, and significant losses from illicit financial flows and corruption. AfDB Chief Economist, Kevin Urama, said stronger domestic resource mobilisation remains the most sustainable path to financing Africa's development needs. 


The bank noted that Africa currently records an average tax-to-GDP ratio of about 18.4 percent, below the level considered necessary to adequately fund development programmes. It recommended the adoption of digital tax systems, unique taxpayer identification mechanisms, artificial intelligence-driven compliance monitoring, and the elimination of ineffective tax exemptions. 


AfDB further revealed that the continent could unlock up to $1.43 trillion annually through a combination of improved tax and non-tax revenue mobilisation, better public investment management, deeper capital markets, stronger public-private partnerships, and measures to stop illicit financial outflows. 


The bank also estimated that African countries could save about $299 billion yearly by improving the efficiency of public investments, while attracting more private-sector funding for critical infrastructure and economic projects. 


The disclosure was contained in the AfDB's 2026 African Economic Outlook report and was highlighted during the bank's annual meetings, where leaders discussed strategies for closing the continent's massive development financing gap. 



Comments

Post a Comment

Popular posts from this blog

Suspected Bandits Arrested by Hunters in Imesi-Ile, Handed Over to Police

Image
 By Kehinde Awosina  Three suspected Fulani bandits were on Wednesday, June 3, 2026, apprehended by security operatives at Àbèsè farm in Imesi-Ile, Obokun Local Government Area of Osun State, following an operation triggered by intelligence on suspicious movement within the area. According to local security sources, the suspects were arrested after their cattle were reportedly discovered concealed within the farmland, raising concerns about possible illegal grazing and coordinated bandit activities in the community. Security personnel confirmed that the arrested individuals are currently in custody at the Imesi-Ile Police Station, where they are being detained for further investigation. A statement from the operation also noted growing tension in the area due to repeated reports of armed intrusions into farmlands. It was gathered that the swift response was led by the community’s security leadership, including Chief Layi Abesin, Chairman of the Security Committee, and Chie...
Read more

Babalola Obisesan Rejects Pelumi Olajengbesi's Imposition as Accord Candidate, Threatens Legal Action

Image
 By Kehinde Awosina An aspirant of the Accord Party for the Obokun/Oriade Federal Constituency seat, Babalola Obisesan, has rejected the emergence of Pelumi Olajengbesi as the party’s candidate ahead of the 2027 general elections. Obisesan described the process that produced Olajengbesi as undemocratic and contrary to the principles of fairness and transparency expected within the party. According to him, the selection process was allegedly influenced by only a few individuals, denying party members and supporters across Obokun and Oriade the opportunity to freely decide their preferred candidate through a credible democratic exercise. The Ijebu-Jesa-born politician lamented that the development violated internal democratic values and disenfranchised party loyalists who expected an open and fair process. He further alleged that the action contradicted electoral principles and civic rights, warning that he may seek legal redress to challenge the emergence of Olajengbesi as the party...
Read more

Five Months Without Salary: Obokun LG Education Board Member Resigns, Joins APC in Protest Move

Image
By Kehinde Awosina  A member of the Obokun Local Government Education Board, Engr. Philip Ayodele, has officially resigned his appointment, citing the non-payment of five months’ salary arrears running from May to September 2025. Ayodele, who hails from Ipetu-Ile Ward 02 in Obokun Local Government Area, said his decision followed prolonged neglect of his entitlements despite repeated efforts to resolve the issue through formal channels. He alleged that several letters written to the appropriate authorities on the matter were ignored without any meaningful response, describing the situation as unfair and discouraging. In a major political development, the former board member also announced his decision to join the All Progressives Congress (APC), aligning with Hon. Oluwole Oke, who represents the Obokun/Oriade Federal Constituency in the House of Representatives. Ayodele said his defection was driven by what he described as “neglect of rights and lack of responsiveness” from the rel...
Read more