Africa has an abundant endowment of natural resources. However, fiscal regimes governing the extractive sector in most African countries make it difficult for countries to effectively tax this sector. In many cases, companies enjoy a wide range of tax incentives that are spread over a long period of time. As a result many resource rich countries are faced with dwindling tax revenue from extractive sector partly due to falling global commodity prices but also due harmful tax incentives or outright tax avoidance.
The strategic driver under this thematic programme is the ineffective fiscal regime governing the extractive sector in resource rich African countries which results in inadequate mobilization of tax revenues from the extractives sector. Our goal is to achieve improved fiscal transparency and regulatory regimes in Africa’s extractive sector to curb outflows of financial resources.