Business
THE Economic Commission for Africa (ECA) has advised countries in the continent to broaden their national tax base with a view to deepen their domestic resource mobilisation.
This is contained in a statement on Monday by Hanan Morsy, Deputy Executive-Secretary and Chief Economist, ECA.
Morsy gave the advice at the closing of the Experts Segment of the 56th Session of African Conference of Ministers in Victoria Falls, Zimbabwe.
According to her, Africa has the lowest tax to GDP ratio across the regions.
“Optimising our tax collection efforts is imperative for sustainable development.
”Countries can begin by improving their efficiency of public spending; ensuring that every dollar invested delivers maximum returns.
”It is not just about investing in the right areas, it is also about doing them in the best possible way to minimise waste and maximising impact,” she said.
On taxation, Morsy recommended progressive tax systems, digitalisation through electronic tax filing, and removing ineffective tax exemptions.
”ECA is currently piloting research on assessing optimal taxation of the digital and technology sectors.
”It is important for African countries to leverage their assets, starting by harnessing the most valuable asset of all, human capital.
”Empowering and equipping our youth will be crucial to shape our shared future, and to achieve this, we must continue to prioritise innovation and invest in skills and education”, she said.
The executive-secretary noted that the Africa’s path to sustainable development hinges on three crucial elements.
According to her, the first is addressing the issue of finance and investment with a view to attract more affordable and concessional finance to the continent through the reform of the global financial architecture.
She added that this also required de-risking projects to attract private sector investment that was needed to boost the meagre 14 per cent share of the private sector in Africa.
”Secondly, at the regional level, countries must transform potential and ideas into tangible action through concrete bankable projects.
”The success of regional initiatives and approaches depends greatly on our ability to effectively implement the African Continental Free Trade Area (AfCFTA).
”As such, countries should continue to foster the creation of regional value chains in critical sectors like minerals and electric vehicles (EVs), food and energy systems, and technology.
”Regional collaboration can energise our joint determination to foster economic diversification, industrialisation, and intra-regional trade to catalyse positive transformation throughout our continent”, she also said.
Morsy further called for national level actions such as creating an enabling environment and adequate policy and regulatory frameworks.
The experts report explored a spectrum of instruments and mechanisms aimed at financing the transition to inclusive green economies in Africa.
The report will be presented to the Finance ministers at a meeting scheduled to be held between March 4 and March 5 for the purposes of advancing the agenda. (NAN)
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-March 04, 2024 @ 14:02 GMT|
Tags: Economic Commission for Africa Hanan Morsy
