AfDB Approves $5.52m Grant to Boost Tax Administration Across West Africa

AfDB Approves $5.52m Grant to Boost Tax Administration Across West Africa

The African Development Bank Group (AfDB) has approved a $5.52 million grant to strengthen tax administration systems and enhance domestic revenue mobilisation in West Africa, as governments across the region seek to expand fiscal capacity and reduce dependence on external borrowing.

The funding agreement was signed with the West African Tax Administration Forum (WATAF) to implement a regional initiative known as the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA). The programme is designed to modernise tax administration, strengthen governance structures, and improve efficiency in public revenue collection.

Funding for the initiative will come through the African Development Fund (ADF), the concessional financing arm of the AfDB, under its Transition Support Facility, which focuses on supporting fragile and transitional states across Africa.

Speaking on the initiative, AfDB Director-General for Nigeria, Abdul B. Kamara, said strengthening tax administration capacity remains essential for West African economies seeking to increase fiscal space and finance development programmes sustainably.

According to him, improving tax systems will help governments enhance efficiency in revenue collection, curb financial leakages, and strengthen governance in both domestic taxation and the management of revenues from natural resources.

The project will be implemented by WATAF in collaboration with the Economic Community of West African States (ECOWAS) and national tax authorities across participating countries.

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Executive Secretary of WATAF, Jules Tapsoba, described the programme as a milestone for the region, noting that it represents the first region-wide tax administration initiative financed by the AfDB.

Tapsoba explained that the project will strengthen institutional capacity among tax authorities, promote knowledge sharing between revenue agencies, and support the adoption of modern digital tax technologies that improve compliance and enforcement.

The programme will directly support six West African countries — Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone — by providing technical assistance to modernise tax and customs administration systems.

Under the project, governments will receive support to improve oversight of natural resource revenues, strengthen transparency in public financial management, and deploy data-driven tax systems to improve efficiency in revenue collection.

Digital platforms and analytical tools are also expected to help reduce illicit financial flows, tax evasion, and revenue leakages, which have historically undermined public finances in several West African countries.

The initiative will also promote regional cooperation among tax authorities, support research on tax policy, and help align revenue systems with emerging economic frameworks such as the African Continental Free Trade Area (AfCFTA).

The project is expected to run until July 30, 2030, with oversight provided by a Project Steering Committee made up of representatives from WATAF, ECOWAS, and participating countries. A dedicated Project Implementation Unit within WATAF will coordinate the programme’s day-to-day activities.

Experts say strengthening domestic revenue mobilisation remains critical for African economies, where low tax-to-GDP ratios, weak tax administration, and illicit financial flows continue to limit governments’ ability to fund infrastructure, healthcare, education, and other key development priorities.

AfDB Approves $5.52m Grant to Boost Tax Administration Across West Africa