The Global Forum on Transparency and Exchange of Information for Tax Purposes concluded in South Africa on Thursday, July 6th. A report was released highlighting the progress made by African countries in this regard, with €1.7 billion in tax revenue generated through established standards.

37 African countries are participating in this program aimed at strengthening tax transparency. Different strategies have been implemented to achieve this positive outcome, such as an Automatic Exchange of Information. Voluntary disclosures of financial information by states have helped track cases of tax evasion and illicit financial flows. Taking stringent and coercive measures against illegal operators on a continental scale ensures the economic development of African nations. Ongoing administrative cooperation is consistently being carried out in this direction. The Organisation for Economic Co-operation and Development (OECD) reports that Africa loses nearly $60 billion annually due to illicit financial flows, underscoring the seriousness of the issue and the need for policymakers to vigorously combat this phenomenon.

African governments are encouraged to implement effective economic and financial policies to cushion the impact of global economic uncertainties, such as inflation and overindebtedness. In terms of sharing financial information, supranational instruments have been established to ensure the proper execution of standards and knowledge exchange. Last year, 1,170 officials from the 37 countries were trained in the use of various tools facilitating these exchanges.

The reinforcement of measures also occurs at the jurisdictional level. Cooperation among the competent jurisdictions of states supports the fight for tax transparency through their expertise and the implementation of numerous regulations.

Combating illicit financial flows will ensure the economic development of African countries. However, more efforts and concrete actions will be imperative if they aspire to be among the leading proponents of tax transparency. European development organizations participated in the forum and presented various recommendations.

Photo Credit: UN/Jason Leung