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October 16.2025
2 Minutes Read

Africa's Tax Revolution: Seizing Opportunities to Rewrite Financial Laws

Abstract African woven pattern symbolizing Africa tax reform.

Reclaiming Africa's Financial Sovereignty

A decade after exposing the grievous losses from illicit financial flows, African leaders are finally standing up to rewrite the detrimental tax codes that have perpetuated wealth extraction from the continent. The recent 13th Pan-African Conference on Illicit Financial Flows and Taxation, held in Johannesburg, saw an intensified call for laws that directly criminalize trade mispricing. This movement, championed by economists and tax justice advocates, underscores the urgency of halting billions lost annually through loopholes exploited by multinational corporations.

New Tools to Combat Old Problems

Delegates at the conference launched a new continental Policy Tracker aimed at assessing progress in combating illicit financial flows. This tool will undoubtedly provide governments and civil society alike with the data-driven insights necessary to evaluate their reforms. In addition, it was noted that African negotiators are pushing forward in the United Nations to rewrite global tax rules by 2027, a significant opportunity for African states to gain a fairer share of wealth generated within their borders.

The Economic Implications: Facts and Figures

According to the United Nations Conference on Trade and Development (UNCTAD), eliminating these illicit flows could recover approximately $89 billion annually for African economies. This figure not only represents a substantial impact on national budgets but also illustrates the broader economic potential if African institutions succeed in stabilizing their financial systems. For instance, the report highlights that by curbing illicit capital flight, Africa could nearly halve its annual financing gap of $200 billion necessary to achieve the Sustainable Development Goals.

Fostering Unity for Greater Impact

Former South African President Thabo Mbeki, who was at the forefront of the Mbeki Panel ten years ago, reminded delegates of the importance of unity at this conference. Mbeki emphasized that without a strong and united African front, the continent risks being sidelined in global negotiations that dictate the rules of international taxation. As he poignantly stated, "If we are divided, others will write the rules for us." This broad call for coalition-building resounds in the context of the anticipated Framework Convention on International Tax Cooperation, which could transform how wealth is taxed and retained on the continent. Mbeki's sentiments highlight not just the socio-economic implications but also the political leverage that unity can create.

Conclusion: A Call for Action

As Africa seizes this moment for tax reform, business leaders, policymakers, and investors must pay attention. The stakes are undeniably high; halting financial hemorrhage is not just about laws—it's about reclaiming the continent's financial sovereignty and development potential. The future is being rewritten today, and every stakeholder has a role to play in ensuring that Africa finally flips the narrative in its favor. To be part of this crucial dialogue and help shape a fairer economic future for Africa, engage with the ongoing developments and support local initiatives aimed at strengthening tax regulations and economic reforms.

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Why Internet Shutdowns Are Thriving in Africa: Uncovering the Trends

Update Unpacking Africa's Rapid Increase in Internet Shutdowns As many as 193 internet shutdowns were recorded in Africa from 2016 to 2024, with an alarming surge of these incidents escalating during politically sensitive times, such as elections and protests. A recent book, co-edited by Felicia Anthonio and Tony Roberts, provides a comprehensive analysis of the motivations and implications behind this increasing trend, underscoring the use of digital blackouts as a tactic for suppressing dissent across the continent. Understanding Internet Shutdowns and Their Consequences Internet shutdowns are intentional disruptions of connectivity, often executed by state authorities in collaboration with internet service providers. These shutdowns are not just an infringement on civil liberties; they represent a substantial breach of human rights as they inhibit free expression, access to information, and participation in democratic processes. From Uganda to Zimbabwe, governments are increasingly normalizing these practices, not only as tools of political control but as instruments in times of conflict. Strategic Timing: Shutdowns as Political Tactics The research presented in the newly released book highlights how shutdowns are strategically enforced during crucial moments—particularly around elections or public demonstrations. In Senegal, for example, five shutdowns were implemented in a three-year period, radically altering citizens' access to essential online services such as education and healthcare. Similar patterns were evident in Ethiopia and Zimbabwe, where internet access was cut to stifle political opposition and curb negative media coverage. The Rising Trend: A Global Context 2024 has exemplified a record year for internet shutdowns, with 296 incidents documented globally, marking a notable international trend of governments employing digital blackouts, particularly in Africa. This reflects a broader strategy to control narratives and suppress information flow, further exacerbated by ongoing conflicts within the region, as highlighted by Access Now's report. The Role of International Law and Accountability According to international human rights law, internet shutdowns are deemed illegal, unnecessary, and disproportionate. The growing use of these tactics by regimes across Africa poses significant questions concerning accountability and the responsibilities of telecommunications companies. As these organizations comply with government orders, they inadvertently become complicit in the violation of individual rights. This dynamic raises urgent calls for a cohesive global response to ensure that access to information and freedom of expression are maintained. Future Implications for Africa's Digital Landscape The implications of these shutdowns are profound, not just for governance and free speech, but for the future of the African digital economy. As economies become more dependent on digital infrastructures, sustained blackouts could have dire consequences for business, education, and social connectivity. Policymakers must emphasize robust limitations on the use of shutdowns moving forward, ensuring adherence to international human rights practices. The continued rise in internet shutdowns in Africa poses serious implications for democratic practices and citizen rights. To empower African nations, it's crucial for all stakeholders—governments, civil society, and technology providers—to advocate for an open, secure internet. The future of Africa's socio-economic development hinges heavily on how well these digital rights are protected.

Why JKIA Modernisation and a New Airport Will Reshape Kenya's Economy

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Rwanda's Road Drainage Crisis: Environmental and Economic Impacts Unveiled

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