The African Development Bank Group has signed a $5.52 million grant agreement with the West African Tax Administration Forum (WATAF) to launch the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA). The initiative aims to strengthen the ability of six West African countries to mobilize, manage, and protect domestic revenues more effectively. The funding comes from the Transition Support Facility of the African Development Fund, the concessional financing arm of the Bank Group, and reflects a shared commitment to building stronger, more transparent, and resilient tax systems that can support sustainable development across the region.
The project represents a major investment in improving fiscal sustainability and promoting deeper regional integration. It focuses on modernizing tax and customs administration, strengthening oversight of revenues from natural resources, and equipping member states with the skills and tools needed to reduce revenue leakages and address illicit financial flows. Through a combination of analytical research, technical assistance, digital innovations, and policy dialogue, the initiative will help participating countries align their tax systems with regional frameworks and international standards.
The program will also deliver several regional tools and knowledge resources aimed at strengthening tax administration. These include the development of an electronic invoicing toolkit, training programs aligned with the African Continental Free Trade Area framework, improved transfer pricing assessment tools for the extractive sector, and a regional platform to support young tax researchers. In addition, selected countries will receive targeted support in areas such as value-added tax implementation, customs valuation, governance in the mining sector, and the promotion of gender-responsive tax policies.
The primary beneficiaries of the project will be the tax authorities of Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone, with WATAF serving as the executing agency. Regional collaboration will involve institutions such as the Economic Community of West African States and the Nigeria Revenue Service, which are expected to provide technical expertise and support for implementation. The project will be managed by a dedicated Project Implementation Unit within WATAF and guided by a multi-stakeholder steering committee representing regional partners and beneficiary countries.
The initiative is expected to run until July 2030 and will focus on strengthening institutions and ensuring long-term sustainability of domestic revenue systems. By supporting reforms in tax administration and governance, the African Development Bank aims to help countries expand fiscal space, finance development priorities, and build greater resilience to economic shocks across the West African region.
