President John Dramani Mahama has commended the African Union (AU) Commission for its proactive role in building the capacity of Member States and advocating fair and equitable international tax rules.
Delivering a keynote address at the Heads of State and Government breakfast dialogue at the AU Commission headquarters in Addis Ababa, Ethiopia, Mahama, who serves as the AU Champion on Financial Institutions, praised the Commission’s efforts in strengthening Africa’s financial autonomy.
The event, themed “Africa at the Forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063,” was held on the sidelines of the AU Summit under the auspices of the Alliance of African Multilateral Financing Institutions, also known as the Africa Club.
Mahama cited the recent withdrawal of USAID support as a wake-up call for Africa to prioritize domestic resource mobilization.
“Addressing the financing gap requires a multifaceted approach. Strengthening tax administration, combating illicit financial flows, and fostering a culture of tax compliance can significantly boost revenue generation,” he stated.
He highlighted the ongoing efforts under the United Nations Framework Convention on International Tax Cooperation, describing it as a crucial step in eliminating base erosion and profit shifting, which threaten national revenues.
“It is projected that African countries need to raise their median tax-to-GDP ratios by about 13.2 percentage points to 27.2 percent of GDP by 2030 to close the financing gap,” he noted.
Mahama further emphasized the need for innovative financing mechanisms and a reformed global financial architecture to ensure equitable resource distribution.
He stressed the role of African multilateral financial institutions in addressing trade, investment, and development challenges across the continent.
“It is our responsibility to strengthen these institutions to support the continent’s transformation and the realization of Agenda 2063,” he said.
He lauded the establishment of the Alliance of African Multilateral Financial Institutions (AMFI), also known as the Africa Club, as a testament to Africa’s commitment to collaboration and homegrown solutions for development.
Mahama also underscored the importance of innovation, citing the launch of the African Virtual Investment Programme (AVIP) by the AU Commission as a significant milestone.
“By aggregating comprehensive data on investments and policies, AVIP will provide critical insights for informed policymaking, attract investment, and ensure resources are deployed for sustainable development and inclusive growth,” he stated.
He reiterated the urgency of accelerating the implementation of key AU financial institutions, including the African Central Bank, the African Investment Bank, the African Monetary Fund, and the Pan-African Stock Exchange, to facilitate investments and financing for Africa’s development agenda.
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