According to the latest Africa Initiative report, jointly produced by the OECD and the African Union (AU), this breakthrough has unlocked a record amount of additional revenue.
In 2023, seven African countries reported identifying more than €2.2 billion in additional revenue from RE, a figure that exceeds all previous years since the Africa Initiative was launched in 2014.
This amount is also higher than the total additional revenues identified from 2009 to 2022.
These results bring the total revenue identified through international tax investigations, voluntary disclosure programmes (VDPs) related to the automatic exchange of financial account information (EAR) and other compliance activities to more than €3.8 billion.
Since 2009, the DRE has enabled 12 African countries to identify more than €2.5 billion in additional revenue.
In 2023, one African country used financial account data obtained through the Common Reporting Standard (CRS) to identify nearly €30 million. The EAR, used by five African countries since 2017, has identified more than €40 million in additional revenue, highlighting the huge potential of this tool for NRM in Africa.
Albert M. Muchanga, Commissioner for Economic Development, Trade, Tourism, Industry and Minerals at the African Union Commission, said: “The Tax Transparency in Africa report […] provides concrete evidence of the impact of tax transparency in combating the scourge of illicit financial flows (IFFs) from Africa and demonstrates the enormous potential offered by the implementation and use of this tool by African tax authorities.”
African countries have continued to strengthen the essential elements of an effective RE, with support from the Africa Initiative to build the necessary infrastructure.
The African mutual assistance network now comprises more than 3,400 mutual assistance relationships, 82% of which have been established through the Mutual Administrative Assistance Convention (MAAC).
In terms of requests, 19 African countries sent 888 RE requests in 2023, the highest number since the inception of the Africa Initiative, and received 801 RE requests.
However, the potential of RE remains under-exploited as its use is concentrated in a few countries.
MN/ac/lb/as/APA