The Nordic Africa Institute


Taxation for inclusive development: challenges across Africa

Date • 15 Jul 2021

Improved tax revenue performance goes hand-in-hand with broader development of the economy. A well-designed tax system can support a structural transformation process that includes job creation and higher incomes. Conversely, poor tax system design can tilt this process towards generating low-paid jobs.

In order to ensure that social protection programmes can be sustained over time, with less dependence on aid, this Current African Issues recommends a systematic approach to tax design reform. While heterogeneity between African countries, both in terms of administrative structure and fiscal capacity, means that tax policy advice must be highly contextualised, there are a number of lessons to be learnt from past successes and mistakes.