President of the Republic of Ghana, H.E John Dramani Mahama, has called on African leaders to prioritize the strengthening of tax compliance across the continent.
According to him, tax compliance is a crucial step in addressing Africa’s significant financing gap and, ultimately, elevating the continent from poverty.
President Mahama made these remarks while delivering his keynote address as Champion on African Union Financial Institutions at the Heads of State and Government breakfast dialogue at the AU Commission headquarters in Addis Ababa, Ethiopia, on February 16, 2025.
He also commended the African Union Commission for its commitment to bridging the financial gap on the continent, providing capacity building for member states, and ensuring fair and equitable international tax rules at the global level.
“Your Excellencies, addressing the financing gap requires a multifaceted approach. Domestic resource mobilization is crucial, by improving tax administration and combating illicit financial flows and encouraging a culture of tax compliance, we can significantly increase our revenues.
“We applaud the African Union Commission for its proactive role in providing capacity building to member states at the continental level and advocating for fair and equitable international tax rules at the global level.
H.E. John Dramani Mahama further disclosed that Africa will need additional innovative financial resources and reforms to close the financing gap by 203o.
“Domestic efforts alone will not suffice. It is projected that African countries need to increase their median tax to GDP ratios by about 13.2 percentage points to 27.2% of GDP to be able to close the financing gap by 2030. This highlights the need for additional innovative financial resources and reform of the global financial architecture to ensure equitable and inclusive distribution of resources.”
Source: Elvisanokyenews.com
