West Africa must strengthen its domestic revenue mobilisation systems and reduce its reliance on external financing if the region is to close an annual development financing gap of more than $100 billion, Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Sarpong, has said.
He said the financing challenge facing countries in the sub-region could not be addressed primarily through borrowing and external assistance, but required governments to improve their capacity to generate sustainable domestic resources.
Mr Sarpong made the call in Accra when he addressed the 8th High-Level Policy Dialogue and 23rd General Assembly of the West Africa Tax Administration Forum (WATAF).
He said the region’s relatively low tax revenue collection demonstrated the scope for governments to mobilise additional resources from within their economies.
According to him, West Africa’s average tax-to-GDP ratio is about 13.5 per cent, compared with an African average of 16.1 per cent and the approximately 20 per cent convergence benchmark for the West African Economic and Monetary Union.
Mr Sarpong said closing the financing gap would require countries to broaden their tax bases, bring more informal economic activity into the formal sector, improve revenue management from natural resources and channel domestic savings into productive long-term investments.
“The answer to our development financing question does not lie primarily beyond our borders. It lies within them in our capacity to mobilise our own domestic resources fairly, efficiently, and sustainably,” he said.
Tax systems and development
The GRA Commissioner-General said revenue authorities should be viewed not merely as institutions responsible for collecting taxes but as important components of national development.
“Tax systems are not mere instruments for collecting revenue. They are the architecture of state capacity,” he said.
He explained that stronger revenue mobilisation would give governments greater capacity to finance public services and development programmes while reducing exposure to external financing pressures.
Mr Sarpong, however, stressed that efforts to increase tax revenues should be balanced with the need to maintain an environment that supports investment, entrepreneurship and private-sector growth.
Technology key to mobilisation
He also identified technology as an important tool for improving tax compliance and reducing revenue leakages.
He called for wider adoption of electronic filing, electronic payment systems, digital invoicing, data analytics and artificial intelligence to make tax administration more efficient.
According to him, digital tools could help revenue authorities improve compliance while making it easier for taxpayers to meet their obligations.
Regional cooperation
Mr Sarpong further called for closer collaboration among West African tax administrations to address cross-border tax challenges.
He identified illicit financial flows, transfer pricing, the digital economy and cross-border trade as areas requiring greater cooperation and information sharing.
“No tax administration, however well-resourced, can modernise in isolation,” he said.
He identified deeper regional cooperation, technological innovation and stronger institutions as key priorities for transforming tax administration across West Africa.
Mr Sarpong also urged revenue authorities to ensure that tax systems remained fair, transparent and responsive to businesses and citizens.
He said sustainable development financing should be regarded as a shared responsibility involving governments, revenue authorities, businesses, policymakers, development partners, researchers, civil society organisations and citizens.
