Peace for development of the African continent

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Domestic Resource Mobilisation

GLAFAD will advocate for aid for domestic resource mobilisation (DRM). DRM is expected to contribute at least between 75% - 90% of financing of the Agenda 2063 on average per country. We are of the view that DRM will give African countries policy space and reinforces country ownership of African development processes which is often constrained under the terms and conditions of external resources providers. DRM will deepen the social contract between governments and their citizenry; diminish dependency on external flows and vulnerability to external shocks. GLAFAD will thus advocate for aid for domestic resource mobilisation, particularly in their support for civil society, journalists and other accountability stakeholders, which are key to accountable DRM systems. It will advocate for fair and effective tax systems for financing development in Africa. GLAFAD will work towards ensuring the shift from commodity taxation towards more neutral, value-added or sales tax and income tax. It will advocate for governments for leveraging new technologies to modernise the tax collection system, deepening regional integration and tax coordination. Donors can support African countries to strengthen capacity for tax revenue mobilisation e.g. design of new tax codes, digitalisation of tax systems including capacity to levy taxes on e-commerce and related transactions.

GLAFAD will advocate for an international global tax body, that would enable the UN to have a norm-setting role in tax cooperation at an equal capacity to that of the current monopoly of the OECD countries. This will bring meaningful advancement in global economic governance and domestic resource mobilization. Africa is affected by illicit financial flows, tax evasion, non-compliance and avoidance and transfer mis-pricing by large corporations, and this tax body will go a long way to facilitate equitable tax rules. In this regards the organisation will also work towards tax justice advocating for progressive tax policies. These need to be addressed through political will and institutional governance

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