The African Development Bank Group convened a regional seminar in Abidjan, Côte d’Ivoire, to advance discussions on Value Added Tax (VAT) digitalization and its role in strengthening domestic resource mobilization across West Africa. Supported by the Government of Japan through the Policy and Human Resource Development Grant, the event brought together more than 230 participants from governments, regional organizations, the private sector, and development institutions to explore innovative approaches for improving tax compliance and revenue collection.
The discussions took place against a backdrop of growing fiscal pressures and declining external development assistance. Participants emphasized that strengthening domestic revenue generation has become increasingly important for sustaining economic development. VAT remains a critical source of government revenue across many African countries, accounting for roughly one-third of total tax collections. However, relatively low efficiency levels have highlighted the need for reforms that can improve tax administration and reduce revenue losses.
Speakers noted that VAT digitalization goes beyond technological modernization and serves as an important governance reform. Digital tax systems can improve transparency, strengthen trust between governments and taxpayers, enhance transaction monitoring, and increase revenue collection efficiency. Representatives from the African Development Bank and the Government of Japan stressed the importance of strong institutions, supportive regulatory frameworks, and stakeholder cooperation to ensure the successful implementation of digital tax reforms.
