The African Union Commission (AUC) and the African Tax Administration Forum (ATAF) are moving to deepen cooperation on tax policy and administration
This comes as African countries seek to strengthen domestic revenue mobilisation and reduce leakages from cross-border tax activities.
The two institutions reaffirmed their commitment during a meeting between an ATAF delegation led by Council Chair Dr Johnston Makhubu and H.E. Francisca Belobe, AUC Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, at the African Union Headquarters in Addis Ababa, Ethiopia, according to a statement on Friday.
The engagement focused on practical African-led measures to help countries mobilise more revenue, improve tax compliance and strengthen national fiscal systems.
A key area of discussion was the effective use of African tax instruments, including the Agreement on Mutual Assistance in Tax Matters (AMATM), which provides a framework for cooperation among African tax administrations.
The agreement supports the exchange of information, assistance in tax collection, joint tax examinations and other forms of administrative cooperation, with the institutions recognising its importance in tackling cross-border tax evasion, illicit financial flows and aggressive tax practices.
The two organisations also highlighted the ATAF Model Double Taxation Agreement as a tool for strengthening Africa’s tax treaty networks and helping countries negotiate agreements that better protect their taxing rights and reflect their development priorities.
AUC seeks stronger private-sector engagement
Commissioner Belobe urged ATAF to intensify engagement with the private sector, saying businesses should have a stronger role in discussions around tax policy and compliance.
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“Bringing businesses into tax-policy and compliance conversations can contribute to improved voluntary compliance, a broader tax base and greater participation in African economies,” the statement said.
The discussions also identified extractive industries and other hard-to-tax sectors as areas requiring continued attention because of challenges involving valuation, cross-border transactions, specialised contractual arrangements and limited access to relevant information.
For the AUC and ATAF, the focus is now shifting towards ensuring that tax and fiscal instruments translate into practical benefits for African countries.
Belobe welcomed progress made through cooperation around the Specialised Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration and encouraged further efforts to improve tax-revenue collection and strengthen national fiscal systems.
AUC, ATAF plan renewed framework
The institutions are also working towards renewing their Memorandum of Understanding and developing a detailed work plan for the coming years.
The renewed framework is expected to strengthen coordinated action on tax policy and administration, tax treaties, mutual assistance, private-sector engagement and the taxation of strategic and hard-to-tax sectors.
The cooperation comes as African countries seek stronger domestic revenue systems to finance sustainable development while addressing revenue losses linked to cross-border tax evasion and illicit financial flows.
ATAF and the AUC said their cooperation would continue to focus on practical measures that strengthen tax administration and improve countries’ ability to mobilise revenue.
“The renewed framework will strengthen coordinated action across tax policy and administration, treaty matters, mutual assistance, private-sector engagement and the taxation of strategic and hard-to-tax sectors,” the statement said.
The institutions also reaffirmed the importance of sustained dialogue and greater certainty for taxpayers as part of efforts to improve compliance across the continent.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X