This document summarizes a presentation on tax transparency in Africa. It finds that illicit financial flows from Africa range from $50-80 billion annually, with tax evasion being a major contributor. To address this, the Global Forum has launched an Africa Initiative to promote tax transparency and exchange of information. This involves partnerships between the Global Forum and 32 African member countries and organizations. The initiative aims to measure progress in expanding exchange of information networks and infrastructure in African countries. While use of exchange of information is increasing, more efforts are still needed to fully unlock its potential to combat tax evasion.

1. Tax Transparency in Africa 2020
25 June 2020
14:00 – 15:00
Zoom
Key findings

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The issue: The scale of IFFs from Africa
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• Estimates of IFFs from Africa range between USD 50 and 80
billion annually and seem to be on an upward trajectory
• Tax evasion forms an important part of IFFs
• Where transparency is low, the rate of IFFs is high

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A solution: Promoting tax transparency in Africa
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 An Africa Initiative to unlock the potential of transparency and exchange of information
 A strong partnership between the Global Forum, its 32 African members and 11 regional
and international organisations and development partners:

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The rationale of the Africa Initiative
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measuring progress

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Growing African engagement against tax evasion
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3 new Global Forum African members
• Guinea (2019)
• Namibia (2019)
• Mali (2020)
 From 4 in 2009 to 32 in 2020
6 new African countries supporting
the Yaoundé Declaration
 From 4 in 2017 to 29 in 2020

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EOI is given a priority by tax administrations
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33 African countries surveyed in 2019 on the level
of priority accorded to exchange of information:
 21 high/very high
 7 medium
 4 low/very low
 1 none

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African countries are building their EOI infrastructure
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Note: The table reflects the situation for 33 African countries which provided data.
Source: Responses provided to questionnaire by African countries.
EOI infrastructure 2014 2018 2019
CA Delegation 7 19 22
EOI unit in place 5 19 20
EOI unit staffing 25 79 132

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Expansion of the EOI network of African countries
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Use of EOI by African countries is increasing unevenly
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Revenues collected by African countries through EOIR
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8 African countries secured USD 189 million (2014-19)
 Burkina Faso, Cameroon, Kenya, Senegal, South Africa,
Togo, Tunisia, Uganda
5 African countries identified USD 12 million in 2019
 Burkina Faso, Kenya, Togo, Tunisia, Uganda

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Efforts are still needed to unlock AEOI potential
Already exchanging
(started in 2017-19)
Starting in
2020
Ongoing
assistance
• Seychelles (2017)
• South Africa (2017)
• Mauritius (2018)
• Ghana (2019)
• Nigeria
• Cameroon
• Egypt
• Kenya
• Morocco
• Senegal
• Tunisia
• Uganda
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Voluntary disclosure programmes
prior to first exchanges:
 EUR 102 billion recovered globally,
of which:
• USD 82 million Nigeria
• USD 296 million South Africa

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Intensified Technical Assistance in 2019
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 12 intensive mentoring programmes
 20+ tailored technical assistance programmes
 30 on-site training events since 2015
 Over 1,000 tax officials from 44 African countries trained

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Looking forward to current and future challenges
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 Supporting African countries in the context of the COVID-19 pandemic
 Increasing tax transparency and EOI awareness and trainings
 Implementation of transparency of Beneficial Ownership information
 Implementation of AEOI

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