President John Dramani Mahama has charged African Heads of State to ensure tax compliance as a key measure to address the continent’s substantial financing gap.
While delivering his keynote address as Champion on African Union Financial Institutions at the Heads of State and Government breakfast dialogue at the AU Commission headquarters in Addis Ababa, Ethiopia, on February 16, he highlighted the estimated $402 billion annual financing gap facing Africa until 2030.
“Addressing the financial gap requires a multifaceted approach. Domestic resource mobilization is crucial for improving tax administration, combating illicit financial flows and encouraging the culture of tax compliance,” Mahama said.
John Mahama also pointed out other challenges Africa faces, including climate crises, geopolitical tensions, and diseases, which threaten the continent’s growth and sustainable development.
He stressed the importance of strategic investments in key sectors like health, education, energy, and technology, acknowledging the substantial financing gap for these investments to deal with these challenges.
“This financing gap is not merely a statistic. It represents the unrealized potential of millions of Africans whose dream for a better life depends on our ability to invest wisely in infrastructure, education, technology, and health.”
