TAX is an issue of fundamental importance for development. To many developed countries, lower taxes may just mean less revenue, but to many African countries, this has a direct impact on the lives of millions of people’s access to healthcare; basic education; proper nutrition; water and security.

However, African countries have for many years faced difficult challenges of tax collection and administration. Because most economic activities in Africa are informally organised, it is hard for governments to raise revenue from them to finance public services and development projects.

But most African economies are now growing steadily. Africa is also integrating into the global economy in new ways – notably through a large increase in private overseas investment. Although this new investment is mostly very welcome, it might raise problems for tax authorities.

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