African countries struggle to mobilize sufficient domestic revenues—particularly through taxes—to deliver social services and fuel progress toward the Sustainable Development Goals, or global goals. The average tax revenue to GDP ratio in the region is 17%, which is below the 20% ratio needed to help countries fast track efforts to meet the global goals.
Unfortunately in an effort to mobilize a revenue base, many countries have turned to indirect taxes, such as sales and consumption taxes, which are primarily regressive and disproportionately burden those with low incomes. Meanwhile governments underutilize direct taxes, like income taxes, and maintain tax exemptions to corporations and High-Net Worth Individuals (HNWI).