AUC–ATAF deepen cooperation on domestic resource mobilisation
From left: ATAF Council Chair and Commissioner for South African Revenue Services Dr Johnston Makhubu, and AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals H.E. Francisca Belobe, in the meeting at the African Union Headquarters in Addis Ababa, Ethiopia.
Orisemeke Benjamin
The African Union Commission (AUC) and the African Tax Administration Forum (ATAF) have reaffirmed their commitment to strengthening institutional cooperation and advancing African-led solutions to improve domestic resource mobilisation across the continent.
The commitment was made when an ATAF delegation, led by its Council Chair, Dr Johnston Makhubu, met with the AUC Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, H.E. Francisca Belobe, at the African Union Headquarters in Addis Ababa.
The meeting focused on priority tax policy issues aimed at helping African countries mobilise more revenue, improve tax compliance and finance sustainable development.
Belobe said stronger cooperation between African institutions was necessary to build more effective and resilient national fiscal systems.
She also encouraged ATAF to intensify its engagement with the private sector, stressing that businesses should be involved in tax policy and compliance discussions.
According to her, greater private-sector participation could contribute to improved voluntary compliance, a broader tax base and stronger participation in African economies.
“Bringing businesses into tax policy and compliance conversations can contribute to improved voluntary compliance, a broader tax base and greater participation in African economies,” she said.
She added that sustained dialogue and greater certainty for taxpayers were essential to strengthening compliance.
A key issue discussed was the effective application of African tax instruments and technical tools, including the Agreement on Mutual Assistance in Tax Matters (AMATM).
The agreement provides a framework for strengthening cooperation among African tax administrations through the exchange of information, assistance in tax collection, joint tax examinations and other forms of administrative support.
The two institutions said such cooperation had become increasingly important in tackling cross-border tax evasion, illicit financial flows and aggressive tax practices.
“Mutual assistance in tax matters is an important mechanism for strengthening cooperation among African tax administrations,” the organisations said, noting that it could support information exchange, tax collection and joint examinations,” they said.
Strengthening Africa’s tax treaty networks also featured prominently during the engagement.
The ATAF Model Double Taxation Agreement (DTA) was identified as an important policy tool to support African countries in negotiating tax treaties that protect their taxing rights and reflect their development priorities.
The organisations said the model agreement could help countries secure a fairer allocation of taxing rights while addressing the challenges associated with cross-border economic activity.
The meeting also underscored the need to address revenue challenges in extractive industries and other hard-to-tax sectors.
These sectors often present complex taxation issues arising from valuation disputes, cross-border transactions, specialised contractual arrangements and limited access to relevant information.
“Revenue challenges in extractive and other hard-to-tax sectors require stronger cooperation, better access to information and practical technical solutions,” the institutions said.
For both the AUC and ATAF, the focus is increasingly shifting towards translating fiscal instruments and policy frameworks into practical benefits for African countries.
Belobe welcomed the progress achieved through collaboration around the Specialised Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration (STC-FMAEPI).
She encouraged further efforts to improve tax revenue collection and strengthen national fiscal systems across the continent.
The AUC and ATAF are expected to finalise the renewal of their Memorandum of Understanding and develop a detailed work plan for the coming years.
The renewed framework will focus on coordinated action in tax policy and administration, tax treaty matters, mutual assistance, private-sector engagement and the taxation of strategic and hard-to-tax sectors.
