AfDB and WATAF Seal $5.52 Million Grant to Strengthen Tax Systems in West Africa
The African Development Bank Group has officially sanctioned a substantial grant of $5.52 million to the West African Tax Administration Forum (WATAF). This financial injection is earmarked to fortify tax administration frameworks and bolster domestic revenue generation across six nations in West Africa. The funding, channeled through the African Development Fund (ADF), will underwrite the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), a regional endeavor focused on enhancing governmental capabilities in mobilizing, managing, and safeguarding internal revenues.
Signing Ceremony and Key Objectives
In a formal ceremony held in Abuja, the agreement was executed by Abdul B. Kamara, the Bank Group’s Director General for Nigeria, and Jules Tapsoba, the Executive Secretary of WATAF. The project is strategically designed to modernize tax and customs administration processes, reinforce oversight of revenues derived from natural resources, and equip tax authorities with advanced tools to minimize revenue leakages and combat illicit financial flows. It integrates a multifaceted approach, combining analytical research, technical assistance, digital innovation, and policy dialogue to assist participating countries in aligning their revenue systems with both regional directives and international standards.
Expected Outcomes and Regional Benefits
According to the bank, this initiative is poised to deliver several regional public goods, including an electronic invoicing toolkit, training modules that are aligned with the African Continental Free Trade Area (AfCFTA), enhanced transfer pricing assessment tools for oversight in the extractive sector, and a dedicated platform to support emerging tax researchers in West Africa. Additionally, targeted technical assistance will be extended to selected countries to facilitate value-added tax (VAT) implementation, customs valuation reforms, mining sector governance, and the development of gender-responsive tax policies.
The primary beneficiaries of this project are the tax authorities in Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone. Concurrently, the Economic Community of West African States (ECOWAS) is set to gain from the regional tools, platforms, and knowledge products generated under this initiative. WATAF will act as the executing agency, with ECOWAS and the Nigeria Revenue Service expected to collaborate in providing technical support for the project’s implementation.
Statements from Key Officials
During the signing event, Abdul B. Kamara emphasized the critical importance of strengthening tax administration for expanding fiscal space and enabling countries to finance their development priorities. He stated, "Strengthening tax administration is essential for creating the fiscal space that will enable countries to finance their development priorities. The Bank is pleased to support WATAF to advance regional reforms that enhance efficiency, curb leakages and promote governance in both domestic taxation and the extractive sectors." He further highlighted that this partnership would yield long-term benefits for regional stability and economic transformation in West Africa.
Jules Tapsoba, in his remarks, described the initiative as a significant milestone for WATAF and the region. He noted, "This marks the first time WATAF is implementing a region-wide tax administration project financed by the African Development Bank Group, and it represents a significant milestone for our institution and for West Africa." He added that the project would aid member countries in strengthening domestic revenue systems, reducing leakages, and improving revenue mobilization, marking a new phase of coordinated tax administration support across the region.
