Tax and customs policies will be crucial to ensuring that AfCFTA delivers on its promise of economic transformation.
That was one of the key takeaways of the 57th session of the Economic Commission for Africa (Eca): Conference of African Ministers of Finance, Planning, and Economic Development, held in Addis Ababa, Ethiopia, recently.
Participants reinforced the urgency of transformative actions to drive the implementation of the African Continental Free Trade Area (AfCFTA).
The African Tax Administration Forum (Ataf) emphasised the importance of harmonised tax systems and advocating for revenue-generation mechanisms that would sustain government finances while fostering trade liberalisation.
Ataf used this platform to strengthen its collaboration with key continental institutions, including the United Nations Economic Commission for Africa, the African Union, the African Development Bank and Afreximbank. “These partnerships remain essential in advancing tax and customs reforms that align with AfCFTA’s objectives, ensuring that trade policies are designed to enhance rather than hinder economic integration,” the organisation said.
One of the pressing concerns raised at the conference was the financial impact of reducing tariffs under AfCFTA. Many African governments rely heavily on trade taxes for revenue, making it necessary to explore alternative sources of income.
Ataf advocated for tax policy reforms that would maintain fiscal stability while promoting trade facilitation. Discussions focused on optimising domestic taxation to support revenue mobilisation, enhancing digital tax solutions, and strengthening indirect tax measures to ensure sustainable government financing. The need for improved tax administration and coordination was also emphasised to help countries navigate the evolving trade landscape
The organisation further called for the adoption of enhanced domestic revenue mobilisation strategies, stressing the importance of strengthening tax administration, broadening tax bases, and harnessing digital solutions to improve tax collection efficiency.
