Addis Ababa, 17 March 2019 (ECA)-launching of the economic report on Africa-ERA2019-which examines the institutional and policy reforms needed to enable African countries to maximize the mobilization of public resources to finance the continent's development agenda can finally take place.
Speaking two days before the annual Conference of African Ministers of finance, planning and economic development of the Economic Commission for Africa, Mr. Adam Elhiraika, Director of the Division of Macroeconomics and governance, States that ERA2019 explores the opportunities to be exploited by African countries to mobilize more resources through fiscal policy, in particular.
Africa, he says, suffers from a huge financing deficit estimated at 11-13% of GDP per year and the ERA 2019 Edition identifies several rapid gains in the continent's search for additional budgetary leeway to finance the realization of the sustainable development goals (SDGS) and aspirations of the continent's 50-year development agenda, agenda 2063.
"To achieve these two goals, Africa needs to increase its national investment rate to 30-35% of annual GDP and triple its growth rate by 3.2% to about 20% per annum," says Elhiraika.
He says that African countries can increase their Governments ' revenues by 12 to 20% of GDP by strengthening revenue mobilization in six key areas namely, tax policy options, tax policy options, options for non-tax revenue, tax administration options, policy options for the natural resources sector and policy options for debt reduction.
"The launch of ERA2019 and the CoM theme provide a very important opportunity for participants, including finance ministers and high-level experts, to review the report's recommendations and exchange ideas on their activities at the level outside Africa, "said the Director of ECA.
"The key message is that in Africa, the funding of the sustainable development goals poses a challenge, but this challenge is not insurmountable. It can be solved with serious and targeted efforts to mobilize more domestic revenue through fiscal policy. "
The said event of 23 March 2019 will provide a platform for solid discussion and evaluation of budget performance in Africa. ECA experts will share the opportunities and challenges identified in mobilizing financial resources through tax instruments, as well as a specific set of policy options and recommendations aimed at increasing tax and non-tax revenue in Africa.
Economic Commission for Africa
Addis – Abeba
Phone number: + 251 11 551 5826