Experts Call for Accelerated Digital Tax Adoption Across Africa to Boost Revenue and Efficiency
Tax experts and regional leaders are urging African governments to fast-track the deployment of digital tax systems, particularly in Value Added Tax (VAT) administration, to strengthen revenue collection, improve efficiency, and foster trust in public finance.
This call to action emerged from a high-level seminar titled “Driving Smarter VAT Compliance: East Africa’s Digital Leap”, held on June 17, 2025, in Nairobi and virtually. The event was hosted by the African Development Bank Group and the Government of Kenya, with support from Japan’s Policy and Human Resource Development Grant.
Participants included tax authorities from East African Community (EAC) member states, private sector players, civil society, and the media. They highlighted how digital tax reforms can significantly reduce compliance gaps, streamline taxpayer experience, and drive inclusive economic growth.
“By embracing technology, countries are not only improving compliance and broadening the tax base but also building greater transparency and accountability,” said Dr. Kennedy Mbekeani, Officer-in-Charge at the AfDB’s East Africa Regional Office.
Kenya Revenue Authority Commissioner George Obell shared Kenya’s success with e-filing, e-invoicing, and data-driven tax compliance, noting an 11.1% increase in revenue collection in 2024.
Other countries are making similar progress. Uganda’s Electronic Fiscal Receipting and Invoicing System has boosted VAT revenues by 50% since 2021, while Tanzania and Rwanda have also reported improved compliance following digital reforms.
A key discussion point was the integration of Africa’s informal sector, which represents up to 80% of employment in many countries. Panelists emphasized the need for simplified and tailored tax solutions to bring this sector into the formal economy without raising tax rates.
However, funding and infrastructure gaps remain significant challenges. Experts like Emeka Nwankwo of the African Tax Administration Forum and Takaaki Nomoto of the AfDB Board stressed the importance of public-private partnerships to overcome these obstacles and unlock the full potential of VAT digitalization.
AfDB Director of Governance Abdoulaye Coulibaly concluded by reaffirming the Bank’s support for country-specific solutions, investments, and partnerships to accelerate Africa’s digital tax transformation.
