think-tank

Every year, money that should build our hospitals, pay our teachers and light up our secondary schools leaves the continent through doors that were deliberately left open. It does not leave in a single dramatic heist. It slips out through transfer pricing schemes, profit shifting, and offshore accounts registered in capitals that lecture us about good governance. By the time the accountants are finished, a mother in Lagos or Lusaka still waits for a clinic that never gets built, and a young engineer in Nairobi still cannot find a job because the industrial park was never financed.
Ask yourself who decided that a company earning billions from African soil should pay its taxes in Amsterdam, Luxembourg, or the Cayman Islands. Ask who wrote those rules, who benefits from them, and who has spent decades defending them while African finance ministers begged for a fair hearing. The answer is not mysterious. The architecture of global tax rules was drafted largely by wealthy countries and the institutions they dominate, and Africa was invited to observe, not to decide.
Consider the arithmetic. African countries collect, on average, tax revenues equal to around 16 percent of GDP, while OECD members typically collect more than double that. The gap is not because Africans are unwilling to pay. It is because we have been forced to borrow where we should have been taxing, and because the largest corporations operating here have had every incentive to report their profits somewhere else. The African Union's own High-Level Panel on Illicit Financial Flows estimated years ago that the continent loses roughly 50 billion dollars annually to these outflows. Numbers like that are easy to read and hard to feel. So picture it in schools, in clean water pipes, in malaria nets. That is what fifty billion dollars looks like when it is left on the table in someone else's country.
The consequences are not abstract. When tax revenue is too weak, governments reach for external debt, and external debt comes with interest rates, currency risk and creditor demands. Across the continent, a growing share of public spending now goes to servicing debt rather than to health, education or infrastructure. Finance ministers stand before their parliaments announcing cuts they know will hurt the poorest citizens first. This is how a tax loophole in a boardroom in London becomes a shortage of medicine in a district hospital in Malawi.
Now the United Nations has taken a step that should have been taken decades ago. In late 2024 the General Assembly launched negotiations on a UN Framework Convention on International Tax Cooperation, the first serious attempt to build a truly inclusive forum where all countries, not just the members of wealthy clubs, help write the rules. African governments pushed hard for this process, and the African Group played a central role in demanding it. Yet the same moment has exposed how fragile that progress is. The United States withdrew from the negotiations in early 2025, a decision that signals how quickly a powerful state can abandon a multilateral process when it no longer suits its interests. Meanwhile the OECD-led Inclusive Framework continues to set the terms of the global minimum tax, a deal that is valuable but was negotiated largely without the voice of the countries whose tax bases are most at risk.
Let us be clear about who is responsible. Rich nations preach transparency and then shelter the proceeds of corruption in their own financial centres. Tax havens, some of them with close ties to Western capitals, offer secrecy as a product. Multinational corporations exploit every gap in the rulebook and then issue glossy sustainability reports praising their commitment to Africa. These actors are not foreign powers conspiring in a back room. They are the respectable face of a system that treats African revenue as an externality.
But we would be dishonest if we stopped there. Some of the loudest complaints about foreign tax abuse come from African elites who have themselves moved money abroad, hidden assets behind shell companies, and signed mining contracts that sold national wealth for pennies. When a minister's family owns a company that wins a government tender, the leak is not coming from Paris or Zug. It is coming from inside our own house. A tax convention cannot fix a country that refuses to publish who really owns its companies. Our demand for global fairness must be matched by a demand for local integrity.
So what must happen? First, African governments should insist on a convention that binds rather than merely advises, with clear rules on beneficial ownership transparency, automatic exchange of tax information, and enforceable limits on profit shifting. Second, every African parliament should pass laws requiring public registries of who actually owns companies, because sunlight is the cheapest and most effective anti-corruption tool we have. Third, our tax authorities need investment, independence and modern systems. Rwanda, whatever we say about its military adventures in eastern Congo, has shown that electronic invoicing and digital tax administration can widen the base and reduce the friction that drives honest businesses into the informal shadows. Botswana has demonstrated for decades that fiscal discipline, predictable rules and strong institutions attract investment rather than repel it. Mauritius has built a financial sector under sustained regulatory scrutiny. These are not perfect models, but they prove that better governance is possible on this continent.
Civil society has a role too. Journalists, researchers and taxpayers' associations must track the flows, name the companies and publish the contracts. The private sector, especially African businesses that compete on a level field, should demand that tax rules be applied equally to multinationals and local firms. Regional bodies such as the African Union and the African Tax Administration Forum must coordinate negotiating positions so that no single African country is picked off by a clever offer of a special tax deal.
And citizens must demand accountability. Ask your MP what the government has done to publish beneficial ownership data. Ask your finance minister how much revenue was lost to tax incentives last year and who received them. Ask your president why the budget for health is smaller than the interest bill on debt. These questions are not radical. They are the minimum that any taxpayer is owed.
The world has already decided that Africa should be a source of raw materials and cheap labour. It is now deciding whether Africa should also be a permanent source of unpaid revenue. We refuse that future. Our children did not choose to be born into a continent where the rules are written elsewhere and enforced against them. We can change the rules, but only if we stop pretending the problem belongs to someone else.
Demand a binding UN tax convention with a genuine African voice at its centre. Demand public beneficial ownership registries in every African country this year. Demand that our finance ministers publish every tax incentive and every major corporate tax settlement. And demand that those who have taken from us, whether foreign banks or domestic thieves, face the consequences. Africa has the wealth. What we have lacked is a fair table and the courage to sit at it. The time to take that seat is now.
Based on reporting by SAIIA