The missing 27 billion

Image: Kevin Schneider on Pixabay.

The COVID-19 pandemic has caused an unprecedented health and economic crisis. The financial gap for African countries has been further exacerbated during the pandemic and is likely to persist. Given the present precarious conditions of many developing countries, more and better effective use of Official Development Assistance (ODA) could play a crucial role in addressing the immediate impact of the pandemic. In the medium to long term, however, further increases in the mobilization of domestic revenue are critical for improving health systems and achieving the Sustainable Development Goals (SDGs). Despite progress, the collection of tax revenue in Africa still faces many challenges. The continent could bridge a significant amount of its financing gaps by improving the management of corporate income taxes, eliminating unnecessary tax exemptions and curbing illicit financial flows. Read an Africa is a Country article about this by Muna Shifa.