Cape Town Summit Gathers African Leaders to Tackle Revenue Mobilization and Illicit Financial Flows
Their purpose is to convene an international summit focused on addressing the critical issues of enhancing domestic revenue mobilisation and curbing illicit financial flows (IFFs) in Africa.
CAPE TOWN, South Africa - In a gathering set for October 30 to November 2, 2023, Cape Town will welcome a diverse assembly of African leaders, policymakers, and experts, under the umbrella of the African Tax Administration Forum, writes Winston Mwale.
Their purpose is to convene an international summit focused on addressing the critical issues of enhancing domestic revenue mobilisation and curbing illicit financial flows (IFFs) in Africa.
These challenges have been identified as key impediments to sustainable development and economic self-sufficiency on the continent.
The annual ATAF event's overarching theme, "Africa Rising: Sustainable Growth through Revenue Mobilization," underscores the pressing nature of these challenges across the region.
At the commencement of the summit, experts stressed the significance of effective Domestic Revenue Mobilization (DRM). This approach seeks to reduce reliance on foreign aid and debt, thus bolstering self-sufficiency and governments' capacity to deliver public services, combat poverty, and realize development objectives.
Africa's economic recovery has been steadily progressing following the disruptions caused by the COVID-19 pandemic and the ongoing Russia-Ukraine War. Forecasts predict a real GDP growth of 4% in 2023, although it remains below pre-pandemic levels.
The pandemic has exacerbated Africa's financing gap for Agenda 2063 and Sustainable Development Goals (SDGs), adding an extra burden of $194 billion annually. Additionally, the climate crisis has raised annual funding needs from $100 billion to $127 billion until 2030. These challenges underscore the immediate necessity for comprehensive policy interventions in revenue mobilization to support climate change mitigation and development goals.
While addressing these challenges, the summit aims to explore strategies to broaden tax bases, enhance tax administration, and optimize non-tax revenues. Participants will also delve into the intricacies of illicit financial flows, focusing on understanding their mechanisms, routes, and legal vulnerabilities. Efforts to promote transparency, enhance legal frameworks, and foster international collaboration in countering IFFs will be central to the discussions.
The summit will emphasize the pivotal role of robust, transparent, and accountable institutions in driving domestic revenue mobilization and combating illicit financial flows. Encouraging capacity building for personnel and technological upgrades will be at the forefront to ensure an effective response to these challenges.
As the world grapples with the transition to green energy, the summit will feature discussions on the design of environmental taxation, considering the varying rates at which countries are adopting environmental taxes and carbon pricing as revenue-raising measures.
The annual meetings will encompass a variety of events, including seminar series on technology, discussions regarding women in tax, and the evolution of global tax rules. Additionally, workshops, exhibitions, and engagements with development partners and the business community are included in the schedule.
The summit's intended audience consists of senior officials from African Ministries of Finance, tax administrations, customs administrations, specialized agencies of the African Union, trade experts, development partners, as well as representatives from academia, civil society, and research organizations.