ATAF drives $685m tax recovery amid Africa’s revenue crisis

Barbara Bako, Abuja.

The African Tax Administration Forum (ATAF) has disclosed that its tax audit and compliance interventions across member countries generated tax assessments valued at $907.8 million in 2025, with governments recovering $685.8 million in actual revenue as African economies intensify efforts to tackle weak revenue generation and rising debt pressures.

ATAF, in its 2025 Annual Report, said the recoveries were achieved through targeted tax enforcement programmes designed to curb tax avoidance, strengthen compliance and improve domestic resource mobilisation across the continent.

According to the report, $47.1 million was realised from transfer pricing audits targeting multinational corporations, while digital services tax measures generated $3.57 million. Cross-border Value Added Tax compliance initiatives also yielded $142.96 million.

The organisation noted that the additional revenues are helping governments strengthen public finances and fund critical sectors such as infrastructure, healthcare and education without excessive dependence on borrowing.

The report highlighted ATAF’s growing role in supporting African countries facing mounting fiscal challenges, declining external financing and increasing pressure to build sustainable revenue systems.

It stated that the organisation provided technical assistance to 35 countries during the year and trained 2,433 tax officials from 43 countries, including Nigeria, on modern tax administration practices and international tax compliance frameworks.

ATAF explained that part of its intervention involved supporting countries to revise transfer pricing regulations and introduce anti-tax avoidance measures aimed at preventing aggressive tax planning by multinational companies.

The organisation added that it also assisted several tax authorities in establishing specialised transfer pricing and exchange-of-information units to improve oversight of multinational businesses, tackle profit shifting and address illicit financial flows.

The report further revealed that ATAF is deepening engagement in global tax policy negotiations to ensure African interests are reflected in discussions around digital taxation, tax transparency and international tax cooperation.

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Speaking on the report, ATAF Executive Secretary, Mary Baine, said domestic resource mobilisation has become critical to Africa’s economic stability and development aspirations.

“Domestic Resource Mobilisation is no longer optional for Africa; it is the foundation for sustainable development, economic resilience, and fiscal sovereignty. As external financing declines and fiscal pressures intensify, African countries must strengthen tax systems to modernise revenue administration, and build fiscally resourced states that finance development with integrity, effectiveness, and measurable results,” she said.

She stated that ATAF would continue working with member countries and development partners to implement reforms capable of strengthening tax systems and delivering measurable development outcomes across Africa.

The report also identified emerging focus areas including carbon taxation, taxation of the digital economy, gender-inclusive tax systems, taxation of high-net-worth individuals and the deployment of artificial intelligence driven compliance systems to improve tax monitoring and revenue collection efficiency.

ATAF maintained that stronger and more transparent tax systems remain essential for reducing Africa’s dependence on foreign borrowing, improving governance and supporting long-term economic growth across the continent.