Addis Ababa: President John Dramani Mahama has applauded the African Union (AU) Commission for its proactive role in providing capacity-building to Member States at the continental level. He also lauded the Commission for advocating fair and equitable international tax rules at a global level.
According to Ghana News Agency, President Mahama, who is the Champion on African Union (AU) Financial Institutions, gave the commendation in his keynote address at the Heads of State and Government breakfast dialogue held at the AU Commission headquarters in Addis Ababa, Ethiopia. The event, themed 'Africa at the forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063', was held on the sidelines of the AU Summit, under the auspices of the Alliance of African Multilateral Financing Institutions, also known as the African Club.
President Mahama emphasized the importance of domestic resource mobilization, citing the USAID withdrawal as a wake-up call for Africa to look inward and raise domestic financing. He noted that improving tax administration, combating illicit financial flows, and fostering a culture of tax compliance could significantly increase African countries' revenues. The ongoing work on the United Nations Framework Convention on International Tax Cooperation was highlighted as a critical step toward eliminating base erosion and profit-shifting.
The President pointed out that African countries need to increase their median tax-to-GDP ratios by about 13.2 percentage points to 27.2 percent of GDP to close the financing gap by 2030. He stressed the necessity for additional innovative financial resources and reform of the global financial architecture to ensure equitable and inclusive distribution of resources. He also underscored the role of African multilateral financial institutions in financing sustainable development, emphasizing their unique position to address trade, investment, and development gaps across the continent.
President Mahama highlighted the establishment of the Alliance of African Multilateral Financial Institutions (AMFI), or the Africa Club, as a commitment to collaboration for the continent's transformation and realization of the African Union's Agenda 2063. He advocated for strengthening these institutions to effectively contribute to the continent's development and urged for innovative initiatives to complement AMFI's support.
He reiterated that innovation is key to Africa's progress, citing the launch of the African Virtual Investment Programme (AVIP) by the African Union Commission as evidence. This platform is designed to attract investment by aggregating comprehensive data on investments and related policies, providing the evidence necessary for informed policy discussions and decision-making. The President also mentioned the importance of accelerating the implementation of the African Union Financial Institutions, including the African Central Bank, the African Investment Bank, the African Monetary Fund, and the Pan-African Stock Exchange, to foster investments and financing to achieve their objectives.
