The African Capacity Building Foundation’s (ACBF) Executive Secretary, Prof. Emmanuel Nnadozie on Thursday made a presentation on “Capacity Imperatives for Domestic Resource Mobilization (DRM) in Africa” at the 2015 Ronald H. Brown (RHB) African Affairs Series, which is being held from 14-19 September 2015 in Washington D.C., United States of America. The theme of this year’s Series is "Strengthening Capacity in Africa to Address Health, Economics, and Technology Challenges.”
The presentation highlighted the main constraints to DRM on the continent, notably a narrow tax base, the lack of legitimacy of tax authorities, weak capacity of tax administrations, low penetration of the formal banking sector, the lack of human, technical, legal and regulatory, and financial capacities to deal with IFFs and the large informal sector.
It also drew attention on the steps African countries should take to address the capacity gaps in DRM: simplifying and rationalizing tax systems; having a budget line on capacity development provided for in national budgets; ensuring that revenue authorities have the capacity to engage with taxpayers to create awareness on their rights and obligations; developing capacity to raise revenue from neglected sources such as small informal businesses/activities and real estate; providing IT infrastructure, investing in finance data collection, and helping to set up tax registries; and building the human, technical, legal and regulatory, and financial capacities to deal with IFFs.
The presentation also highlighted the role ACBF is playing in the DRM field, mainly the production and dissemination of knowledge products as well as advisory services on capacity building related to DRM.
Named after the late Commerce Secretary Ronald H. Brown, the RHB African Affairs Series is planned and organized by the Constituency for Africa CFA each year in conjunction with the Congressional Black Caucus (CBC) Annual Legislative Conference. The RHB African Affairs Series is designed to educate, inform and engage the American public on critical challenges, issues, and concerns facing Africa; help link members of the CBC and their staff to African challenges, issues and concerns; and promote a proactive and sustainable U.S.-Africa foreign policy agenda.
Over the years, the RHB African Affairs Series has convened more than 200 workshops and forums that have advanced advocacy, analysis of government policy initiatives, knowledge transfer, and the mobilization of public and private sector groups.
Building Africa’s capacity to finance its own development
Domestic Resource Mobilization records improvements but tax collection levels remain low
Political support crucial for successful Domestic Resource Mobilization
Capacity weaknesses represent the most significant challenge to DRM
How Africa loses to Illicit Financial Flows (IFF)
ACBF ready to help African countries stem illicit financial flows
