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In a milestone move toward greater tax transparency, the African Tax Administration Forum (ATAF) has partnered with the World Bank Group and the Zambia Revenue Authority (ZRA) to launch the first regional IT initiative supporting Automatic Exchange of Information (AEOI) in Africa. The initiative aims to empower tax authorities across the continent to share financial information effectively, curb illicit financial flows, and boost domestic revenue mobilization.
With only six African countries operating AEOI-compatible systems, the project addresses a pressing need for affordable, secure, and regionally adapted digital tax infrastructure.
“Our vision is clear: African countries must be equipped not only to exchange tax information but to use it effectively to curb illicit financial flows and strengthen revenue mobilization,” said Mr. Logan Wort, Executive Secretary of ATAF.
A New Era of Data-Driven Tax Compliance
The regional IT solution is designed to do more than facilitate data exchange. It will:
- Enable reciprocal exchanges between African tax administrations
- Ensure data security and confidentiality
- Integrate with national tax administration systems
- Support risk-based compliance management
This shift from compliance enforcement to data-driven compliance strategy marks a significant evolution in African tax administration, aligning with global standards like the Common Reporting Standard (CRS) and addressing rising concerns around offshore wealth and tax evasion.
Zambia Leads Regional Vision
The ZRA has taken a leading role in operationalizing the platform. ZRA Commissioner General Mr. Dingani Banda highlighted the regional significance:
“This initiative not only supports domestic resource mobilization, but it also contributes towards building equitable and efficient tax systems, ultimately benefiting all member countries and their citizens.”
Building on the AEOI Toolkit
This project builds on ATAF’s 2024 AEOI IT Infrastructure Toolkit, which outlined how countries could create in-house solutions. The toolkit’s practical guidance is now being translated into a scalable, ready-to-deploy platform that can be adopted across jurisdictions with limited technical capacity.
Over the next six months, the collaborative team will work on a simplified, cost-effective solution to support CRS and potentially expand to other global exchange frameworks.
Regional Integration, Global Impact
The move is part of a broader ATAF strategy to modernize Africa’s tax systems through digital innovation, a necessary step in reducing reliance on external aid and increasing fiscal sovereignty. As digital economies grow across the continent, the ability to manage, secure, and act upon cross-border financial data will become a cornerstone of Africa’s economic resilience.
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