Elgar Encyclopedia of African Politics Chapter 82: Taxation and state-building

Taxation is a fundamental function of the state and a critical marker of state power. This entry examines taxation’s role as a central component of state-building, serving both as a resource for state functions and as a mechanism for state–society interactions. Historically, taxation was driven by the necessities of conflict, particularly in early modern Europe where taxation helped consolidate state institutions and administrative capacities. However, the unique circumstances of taxation in Africa and the varied nature of taxation systems during both pre-colonial and colonial eras mean that theories of tax and state-building originating in early modern Europe do not necessarily apply. Contemporary challenges in lower-income countries, including economic globalisation and the perverse legacies of colonialism, complicate traditional theories of tax and state-building in the African context. Additionally, the role of informal and non-state taxation shapes political orders and authority beyond traditional state mechanisms.