Chapter 1 discusses the latest tax revenue trends as well as the evolution of tax revenues over the past decade across 38 African countries. The analysis focuses primarily on the level and structure of tax revenues for individual countries and on average across the African continent. Average tax revenue indicators for African countries are compared with averages for other regions.
Revenue Statistics in Africa 2025
Commonalities and Specificities across African Revenue Classifications
Abstract
Achieving the African Union’s Agenda 2063, the United Nations’ Sustainable Development Goals (SDGs) and implementing the Sevilla Commitment require mobilising additional finance in general, and domestic resources in particular, to fund public goods and services. Taxation provides a predictable and sustainable source of government revenue, in contrast with the volatility of other important sources of public revenues, such as grants and mineral royalties. For African countries, where external debt and dependency on volatile resource revenues present notable economic challenges, enhancing domestic resource mobilisation is not just a fiscal strategy; it is also a critical pathway to achieving self-reliance, economic resilience and sustainable development, aligning specifically with the aspirations set out in the African Union's Agenda 2063 for a self-sufficient, integrated and prosperous Africa.
Revenue Statistics in Africa presents an internationally comparable set of indicators on tax and non-tax revenues that can be used to track progress on domestic resource mobilisation and to inform tax policy and reform. The report and its data contribute to strengthen statistical capacity in Africa by providing quality revenue statistics data that can inform decision-making processes and policy monitoring towards African integration. Accurate and relevant data is foundational for formulating policies that resonate with Africa's distinctive economic and political landscapes and societal nuances, thereby propelling more effective and impactful initiatives on the ground.
This edition of Revenue Statistics in Africa includes data on tax revenues up to and including 2023. This first chapter analyses the evolution of the tax-to-GDP ratio, tax structure and share of tax revenue by level of government in 38 African countries: Botswana, Burkina Faso, Cabo Verde, Cameroon, Chad, Republic of the Congo, the Democratic Republic of the Congo, Côte d’Ivoire, Equatorial Guinea, Egypt, Eswatini, Gabon, the Gambia, Ghana, Guinea, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Togo, Tunisia, Uganda and Zambia. The Gambia and Liberia are included for the first time in this edition.
This chapter also compares the averages of the 38 African countries with the averages of 37 Asian and Pacific economies (OECD, 2025[1]), 26 countries in Latin America and the Caribbean (LAC) (OECD et al., 2025[2]) and 38 OECD countries (OECD, 2024[3]). The analysis in this chapter supplements the detailed country information on tax revenue in Chapter 5.
Tax revenue trends across African countries in 2023
Exploring tax-to-GDP ratios in the 38 African countries in this publication reveals a multitude of economic realities. Differences in the level of tax revenues reflect the economic diversity within the continent, each telling a story of fiscal potential and challenges unique to each country. Understanding and navigating these differences is crucial for designing effective tax policies that bolster economic stability and drive development in Africa, as well as for fostering regional integration and cooperation on tax between African countries.
The unweighted average tax-to-GDP ratio of the 38 countries in this report was 16.1% in 2023 (Figure 1.1) an increase of 0.5 percentage points (p.p.) from the level in 2022. The tax-to-GDP ratio is measured as tax revenues (including compulsory social security contributions paid to general government) as a proportion of gross domestic product (GDP).1 In comparison, the average tax-to-GDP ratios in Asia and the Pacific, the LAC region, and OECD countries were 19.6%, 21.3% and 33.9% respectively in 2023.
Note: Data include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only), Somalia and South Africa for 2023. The Africa average and the averages for Asia-Pacific (37 economies), LAC (26 countries) and the OECD (38 countries) are unweighted.
The Africa average should be interpreted with caution as data on social security contributions are not available for Chad, the Gambia, Guinea, Liberia, Togo, Uganda and Zambia and are only partially available for Cameroon and Senegal. Social security contributions for Botswana, Lesotho and Malawi are deemed to be zero as they do not meet the criteria to be classified as social security contributions set out in the OECD classification of taxes in the Interpretative Guide.
The tax-to-GDP ratio for South Africa includes payments made by South Africa to the Southern African Customs Union pool.
Source: Tables 4.1 and 4.2 in Chapter 4 and (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
Africa’s low average tax-to-GDP ratio relative to other regions demonstrates the constrained fiscal space within which African countries operate. This limits their ability to channel substantial investments into sectors like healthcare, education and infrastructure, which are central to sustainable development and societal well-being in Africa. Addressing these gaps is imperative for unleashing Africa's developmental potential, ensuring inclusive and resilient growth across the continent.
In 2023, tax-to-GDP ratios varied widely across the countries in this publication, from 2.9% in Somalia to 34.0% in Tunisia. Morocco, Tunisia, Seychelles and South Africa had tax-to-GDP ratios above 25%; in 14 countries, the level was between 15% and 25%, while in 20 countries it was below 15%.
The tax ratios shown in this publication express aggregate tax revenues as a percentage of GDP. Both the numerator and the denominator may be subject to historical revision. The tax-to-GDP ratio needs to be interpreted with caution: nominal tax revenues and nominal GDP may change in the same direction (both increasing or both decreasing) between two years but the change in the tax-to-GDP ratio over the period will go in the opposite direction if the relative change in nominal tax revenues is smaller than the relative change in nominal GDP.
The numerator (tax revenues)
This publication uses revenue figures that are submitted annually by focal points from national Ministries of Finance, tax administrations or statistics offices. Historical tax revenue data are subject to revisions each year, with more important revisions in latest years. Past figures may also change from one edition to the next when new data are obtained by focal points to improve the publication. In 30 African countries covered in this report, the reporting year coincides with the calendar year. The remaining eight countries report on the basis of a July-June fiscal year or an April-March fiscal year.1
The denominator (GDP)
The GDP figures used in this publication are sourced from the World Economic Outlook (WEO) published by the IMF. Using these GDP figures ensures a maximum of consistency across countries, as well as international comparability. GDP figures are also revised and updated to reflect better data sources and improved estimation procedures, or to move towards new internationally agreed guidelines for measuring the value of GDP. It is nonetheless important to acknowledge and account for the distinctive economic, sociopolitical and historical factors within African countries that profoundly influence GDP metrics.
The most recent available figures from the WEO were published in April 2025 (IMF, 2025[5]) and include GDP revisions made by some countries to align with the most recent System of National Accounts (SNA 2008). There are notable revisions of GDP figures in this report relative to last year’s edition for Burkina Faso, Chad, Equatorial Guinea, Mali, Malawi, Sierra Leone and Tunisia (the GDP figures for 2022 for these countries were revised by +/- 3% or more).
The difference between the 2022 tax‑to‑GDP ratios in the 2024 and 2025 editions following revisions to tax revenues and GDP ranged from -4.9 p.p. in Sierra Leone to 1.3 p.p. in Tunisia.
1. The fiscal year in Eswatini, Lesotho Malawi, Namibia and Botswana runs from April to March. This means that reporting year 2023 is Q2/2023–Q1/2024. The fiscal year for Egypt, Kenya, Malawi (years prior to 2022) and Mauritius (years prior to 2010 and for 2016 onwards) ends on 30 June. The reporting year 2023 includes Q2/2022–Q2/2023. Some countries report certain components of tax revenues on a different basis depending on the nature of the revenues. For example, revenues in Rwanda are reported on a calendar year except for social security contributions, which are reported on a fiscal year basis ending 30 June since 2008. Another example is South Africa, whose data is on a calendar year except for social security contributions and taxes at provincial and local levels (reported on a fiscal year basis ending 31 March).
Changes in tax revenues and GDP in nominal terms
This section analyses changes in nominal tax revenues and nominal GDP in 2023 as well as the resulting changes in tax-to-GDP ratios. The value of the tax-to-GDP ratio depends on two components; the numerator (tax revenues) and the denominator (GDP) (see Box 1.1). This means that annual changes in tax-to-GDP ratios reflect changes in nominal tax revenues as well as changes in nominal GDP. Box 1.2 highlights some of the factors behind differences in tax-to-GDP ratios between countries.
In 2023, the countries covered by this report recorded median growth of 14.1% in nominal tax revenues relative to the previous year, while nominal GDP grew by 10.0% over the same period. Figure 1.2 shows year-on-year percentage changes in nominal tax revenues and nominal GDP between 2022 and 2023 by country. All countries except Niger recorded increases in nominal tax revenues in 2023; Equatorial Guinea and Ghana observed increases of more than 40%.
All except three countries (Republic of the Congo, Equatorial Guinea and Gabon) recorded increases in nominal GDP in 2023. In 21 countries, this increase was less than the increase in tax revenues, leading to higher tax-to-GDP-ratios relative to 2022. In twelve countries, nominal GDP rose by more than nominal tax revenues, causing the tax-to-GDP ratio to decline.
Note: Data include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only), Somalia and South Africa for 2023. Total tax revenues for Chad, the Gambia, Guinea, Liberia, Togo, Uganda and Zambia do not include social security contributions as the data are not available.
Source: Authors’ calculations based on data in (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx, and in (IMF, 2025[5]) for figures of nominal GDP.
The average tax-to-GDP ratio of the African countries covered in this report increased by 0.5 p.p. between 2022 and 2023, following a rise of 0.3 p.p. between 2021 and 2022. As a percentage of GDP, tax revenues increased in 24 countries, decreased in 13 and remained unchanged in one (Figure 1.3).
In 2023, Gabon, Equatorial Guinea and Chad registered the largest increases in their tax-to-GDP ratio, of 4.9 p.p., 4.5 p.p. and 3.4 p.p. respectively. In contrast, the tax-to-GDP ratio of the Democratic Republic of the Congo decreased by 2.1 p.p. between 2022 and 2023, the largest decline among the countries in the report, followed by Niger and Morocco, which both recorded falls of 1.4 p.p. in their tax-to-GDP ratio.
Percentage points of GDP
Note: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only), Somalia and South Africa. The Africa average and the averages for Asia-Pacific (37 countries), LAC (26 countries) and the OECD (38 countries) are unweighted. The change in the Africa average should be interpreted with caution as data for social security contributions are not available or are partial in certain countries.2
Source: Authors’ calculations based on data in Table 4.1 in Chapter 4 and (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
While the average tax-to-GDP ratio for the 38 countries in this report increased in 2023, economic conditions posed significant challenges to African countries that year.
Real GDP growth in Africa slowed from 4.1% in 2022 to 3.0% in 2023 due to a variety of factors: after surging in 2022, food and energy prices remained high in 2023, with one third of Sub-Saharan countries recording double-digit inflation; global demand remained weak, weighing down exports; climate change and extreme weather affected the agricultural sector; and political instability and conflict in some African countries continued to restrict economic development (IMF, 2023[6]; AfDB, 2023[7]; AfDB, 2024[8]).
In 2023, the region was also affected by fluctuations in global prices for oil, gas and minerals. Crude oil prices (Brent and West Texas Intermediate) declined by 17% and 16% respectively over the course of the year while natural gas prices fell more sharply. Mineral and metal prices also declined although demand for some commodities, like iron ore and copper, rebounded in the second half of the year. Precious metal prices trended upwards in 2023 (OECD et al., 2025[2]).
The rising cost of debt repayments in 2023 absorbed revenues that could otherwise have been allocated to spending on development. In 2023, total debt servicing costs for Sub-Sahara Africa amounted USD 72 billion, more than double the amount a decade ago. Interest payments have tripled relative to 2013. High debt service costs in 2023 were due to the sustained increase in the external debt stock (reaching USD 863 billion in 2023), rising global interest rates and depreciation of local currencies against the US dollar (World Bank, 2024[9]; World Bank, 2024[10]).
Note: Changes in tax revenues as percentage of GDP between periods are rounded to one decimal place.
The Africa average and the averages for Asia-Pacific (37 countries), LAC (26 countries) and the OECD (38 countries) are unweighted.
The change in the Africa average should be interpreted with caution as data for social security contributions are not available or are partial in certain countries.
Source: Authors’ calculations based on data in Table 4.1 in Chapter 4 and (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues, https://data-explorer.oecd.org/s/dx.
After a decline of 0.2 p.p. in 2020, the Africa average tax-to-GDP ratio increased for three consecutive years (by 0.3 p.p. in 2021 and 2022 and 0.5 p.p. in 2023). This was also the case for the Asia-Pacific region, whose average tax-to-GDP ratio increased every year between 2021 and 2023 (see Figure 1.4). By contrast, the average tax-to-GDP ratio in the LAC region declined by 0.2 p.p. in 2023 amid a slowdown in economic activity and a decline in global commodity prices, after increasing in both 2021 and 2022. The OECD average tax-to-GDP ratio recorded a decrease of 0.1 p.p. of GDP in 2023 relative to 2022. This was the second consecutive decline in the OECD’s tax-to-GDP ratio following a drop of 0.04 p.p. in 2022.
Changes in revenues by tax type
Corporate income tax (CIT) drove the increase in tax revenues on average across the 38 countries in this publication for the second consecutive year in 2023, increasing by 0.3% of GDP (Table 1.1). Revenues from taxes on goods and services increased by 0.1% of GDP on average in 2023, driven by an increase in revenues from value added taxes (VAT) of the same magnitude. Revenues from taxes on goods and services other than VAT remained unchanged over the period.
The level of countries’ tax-to-GDP ratios are influenced by a variety of factors. These include macroeconomic characteristics such as the diversification of an economy, the importance of agriculture, resource endowments, openness to trade, debt and the size of the informal economy. Location is relevant: landlocked countries are less able to impose taxes on goods and services entering the country than island countries. Changes in the political situation in countries, such as social unrest and corruption, can also influence tax-to-GDP ratios. The capacity of tax administrations and tax morale (or willingness of companies and individuals to pay taxes) are also strongly linked to the level of tax revenues (OECD, 2014[11]) (OECD, 2019[12]; OECD, 2022[13]).
Figure 1.5 shows tax-to-GDP ratios and GDP per capita in countries in different regions. It illustrates that tax-to-GDP ratios tend to be higher in high-income countries. In general, OECD countries collect a higher amount of tax revenues than non-OECD countries, measured as a percentage of GDP. Most of the countries included in this publication have lower income per capita and lower tax-to-GDP ratios than OECD and LAC countries. Levels of GDP per capita vary more among African countries than among LAC and OECD countries.
Note: The y-axis is on a logarithmic scale. The purchasing-power-parity (PPP) between two countries is the rate at which the currency of one country needs to be converted into that of a second country to ensure that a given amount of the first country’s currency will purchase the same volume of goods and services in the second country as it does in the first. The implied PPP conversion rate is expressed as national currency per current international dollar. An international dollar has the same purchasing power as the US dollar has in the United States. An international dollar is a hypothetical currency that is used as a means of translating and comparing costs from one country to the other using a common reference point, the US dollar (definitions derived from (IMF, 2019[15]) and (World Bank, 2024[16])
Source: (IMF, 2025[5]) for figures of GDP per capita. Tax-to-GDP ratios are sourced from (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx. and the Global Revenue Statistics (database), (OECD, 2025[17]), https://www.oecd.org/en/data/datasets/global-revenue-statistics-database.html.
Countries’ financing needs depend in part on their income level, which is an important consideration in understanding tax levels in different countries. The gap between public revenues and development financing tends to be larger in countries with lower per-capita incomes, making mobilisation of additional public revenues particularly critical (Gaspar et al., 2019[14]). The COVID-19 crisis reduced tax revenues in most countries while resulting in significant increases in spending needs and public debt. Renewed efforts to reform tax policy and administrations with a view to increasing revenues have become even more of a priority in the aftermath of the COVID-19 pandemic.
Year-on-year change, p.p.
Note: “Other taxes on goods and services” includes all taxes on goods and services (heading 5000) excluding VAT (heading 5111) excises (heading 5121) and customs duties (heading 5123). “Residual” refers to includes all taxes not elsewhere reported in the table, which includes payroll taxes (heading 3000) and other taxes (heading 6000).
Source: Source: Authors’ calculations based on data in (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
Other notable changes in revenues from the main tax categories since 2020 shown in Table 1.1 include:
Revenues from income taxes increased relatively strongly as a share of GDP in 2022 and 2023, driven by CIT. This was partly due to higher prices in the oil and mineral sector that led to higher profits in 2021 in countries that produce these resources (ATAF, 2023[18]). High prices in the extractive sector in 2022 continued to support the region’s CIT revenues as a share of GDP. Meanwhile, revenues from PIT have fluctuated modestly as a share of GDP since 2020.
Revenues from taxes on goods and services were most adversely affected by the impact of the COVID-19 pandemic in 2020, decreasing by 0.4% of GDP. Revenues rebounded in 2021 boosted by VAT revenues, then increased modestly in 2023 (by 0.1 p.p.). Within taxes on goods and services, VAT revenues have increased more strongly than taxes on goods and services other than VAT (excises, customs and other taxes on goods and services3) every year since 2021.
In 2022, excise tax revenues fell as some governments in the region adopted measures to mitigate the impact of inflation, including reductions or exemptions of excises that reduced tax revenues.
Social security contributions increased by 0.1% of GDP in 2020 and remained unchanged as a share of GDP thereafter on average.
Major changes in tax-to-GDP ratios in African countries in 2023
Figure 1.6 presents changes in tax-to-GDP ratios between 2022 and 2023 by main tax heading across the 38 countries and on average for Africa. The largest increases (in Gabon, Chad and Equatoria Guinea) were mainly driven by higher income tax revenues. Income tax revenues were also the main driver for the decrease in tax revenues in the Democratic Republic of the Congo.
The tax-to-GDP ratio in Gabon increased by 4.9 p.p. in 2023 driven by a combination of rising nominal tax revenues and a decline in nominal GDP over the period (see Box 1.1). The economy slowed in 2023 following a series of logistical disruptions, capacity constraints that affected manganese and wood production and exports, high fuel costs and political uncertainty (IMF, 2024[19]; IMF, 2024[20]). Amidst a surge in international oil and gas prices and despite weakening minerals and metal prices in 2022 (World Bank, 2025[21]), high commodity prices boosted companies’ profits in that year resulting in higher CIT revenues in 2023 (up 2.6 p.p.). In addition, VAT revenues and revenues from other taxes on goods and services3 increased by 0.9 p.p. and 1.0 p.p. respectively over the period. These increases were recorded principally at the border due to higher import volumes and improved tax assessment methods for manganese exports (World Bank, 2024[22]).
In Equatorial Guinea, whose tax-to-GDP ratio rose by 4.5 p.p. in 2023, an increase in nominal tax revenues also coincided with a decline in nominal GDP. Equatorial Guinea’s tax revenue is heavily dependent on oil and gas, while non-oil tax collection is limited by a narrow tax base, weak administration and a large informal sector. In 2023, Equatorial Guinea's economy contracted by 5.1% in real terms and 12.3% in nominal terms, mainly due to a continued decline in oil production and hydrocarbon exports (AfDB, 2024[23]; IMF, 2025[24]; IMF, 2024[25]). However, nominal tax revenues increased by 44.0% between 2022 and 2023 as high oil and gas prices in 2022 led to an increase in CIT revenues of 4.2 p.p. in 2023.
Chad’s tax-to-GDP ratio increased for the second consecutive year (2.8 p.p. in 2022 and 3.4 p.p. in 2023). Chad’s real GDP growth accelerated to 4.9% in 2023, with oil GDP increasing by 7.6% due to the reopening of previously closed oil fields. The increase in 2023 in Chad’s tax-to-GDP ratio was mainly driven by an increase in CIT payments by oil companies (2.1 p.p.). VAT revenues increased by 0.8 p.p., mainly due to an increase in revenue from VAT on imports following a substantial increase in public investment that boosted imports in 2023 (IMF, 2024[26]).
Percentage points (p.p.)
Note: The Africa average should be interpreted with caution as data for social security contributions are not available or are partial in certain countries2 and are estimated for 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. See the country tables in Chapter 5 for further information.
Source: Authors’ calculations based on data in (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
The tax-to-GDP ratio of the Democratic Republic of the Congo decreased by 2.1 p.p. between 2022 and 2023 after increasing strongly the previously year (3.7 p.p.). The drop was primarily driven by a decrease of 1.6 p.p. in CIT revenue. In the previous year, CIT revenues reached a peak of 5.6% of GDP, more than double the level in 2021. CIT revenue decreased by 11% between 2022 and 2023 while nominal GDP increased by 25% over the period. These trends were driven by the mining sector; in 2023, the extractive industry grew by 15.4%, contributing to about 70% of GDP growth (IMF, 2024[27]).
In Zambia, there were significant (and in some cases opposing) changes in revenues from different tax types as a percentage of GDP between 2022 and 2023. Revenues from taxes on goods and services increased by 2.1 p.p. but this was offset by a decline in CIT revenues (of 1.6 p.p.) over the period. Recent reforms may have contributed to these patterns: VAT and excise revenues were boosted by the elimination of fuel exemptions (Zambian Parliament, 2022[28]) whereas the decline in CIT revenues (across the extractive and non-extractive sectors) may be partly due to the harmonisation of CIT rates across all sectors: for instance, the telecommunications sector that operated a 30%/40% tiered system is now taxed at 35% (PWC, 2024[29]).
Evolution of tax-to-GDP ratios since 2013
In 2023, Africa’s average tax-to-GDP ratio was 1.4 p.p. higher than in 2013 (Figure 1.7). In comparison, the averages for the LAC region and OECD countries increased by 0.8 p.p. and 1.3 p.p. respectively between 2013 and 2023. Africa’s average tax-to-GDP ratio increased from 14.7% of GDP in 2013 to 15.1% in 2015 but decreased in the next two years due to lower commodity revenues. Following two years of increases, the tax-to-GDP ratio in 2019 (15.2% of GDP) slightly exceeded the 2013 level but fell in 2020 due to the COVID-19 pandemic. The years since 2021 have seen a sustained recovery in tax revenues.
Percentage of GDP
Note: The Africa average should be interpreted with caution as data for social security contributions are not available or are partial in certain countries. 3 The figures include sub-national government tax revenues for Cabo Verde (2008-2020), Eswatini, Mauritania (2009-2018), Mauritius, Morocco, Nigeria (only state revenues), Somalia (from 2019) and South Africa (from 2003).
The Africa average and the averages for Asia-Pacific (37 countries), LAC (26 countries) and the OECD (38 countries) are unweighted.
Source: Table 4.1 in Chapter 4 and (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
As shown in Figure 1.8, revenues from the main tax categories increased at approximately the same pace between 2013 and 2023, with revenues from income taxes and from taxes and goods and services both increasing by 0.6 p.p. over the period.
Percentage of GDP
Note: The Africa averages should be interpreted with caution as data for social security contributions are not available or are partial in a few countries2 and are estimated for 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. The sum of the different categories may not equal the Africa tax-to-GDP ratio.4 The figures include sub-national government tax revenues for Cabo Verde (2008-2020), Eswatini, Mauritania (2009-2018), Mauritius, Morocco, Nigeria (only state revenues), Somalia (from 2019) and South Africa (from 2003).
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
VAT and other taxes on goods of services both grew by 0.3 p.p. over the period to reach 4.5% and 3.6% of GDP respectively in 2023.
PIT rose from 2.5% of GDP in 2013 to 2.8% in 2023, while CIT revenues increased by 0.4 p.p. to 3.3% of GDP in 2023. CIT revenues rose by 0.7 p.p. between 2021 and 2023. The decline between 2014 and 2016 was partly due to lower oil and mineral prices and decreases in CIT rates across the continent.
Figure 1.9 presents changes in tax revenues as a share of GDP across the 38 countries and for the Africa and LAC averages between 2013 and 2023 by tax type. Recent progress in domestic resource mobilisation has varied across African countries: tax-to-GDP ratios rose in 29 African countries between 2013 and 2023 and declined in nine countries.
Tunisia recorded the largest increase over the period (of 5.7 p.p.), which was mainly attributable to higher revenues from PIT (3.3 p.p.), VAT (1.7 p.p.) and social security contributions (1.0 p.p.). Increases in PIT revenues and social security contributions were partly a result of a 147% increase in payroll brought about by successive wage increases (OECD/ATAF/AUC, 2021[30]).
Percentage points
Note: The Africa average should be interpreted with caution as data for social security contributions are not available or are partial in a few countries2 and are estimated for 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. The figures include sub-national government tax revenues for Cabo Verde (2008-2020), Eswatini, Mauritania (2009-2018), Mauritius, Morocco, Nigeria (only state revenues), Somalia (from 2019) and South Africa (from 2003). The data for Mozambique should be treated with caution as the changes in revenues as a share of GDP result principally from the interruption in fishing licence revenues in 2017.
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
The different trajectories of tax revenues among the countries in this report is further demonstrated by Figure 1.10, which shows the evolution of tax revenues in Togo and Chad since 2010. Togo’s tax-to-GDP ratio showed a relative strong and steady growth over this period, increasing by 7.8 p.p. between 2010 and 2023 although it fell in both 2017 and 2018. Tax levels in Chad, on the other hand, were highly volatile between 2010 and 2023.
Togo’s tax-to-GDP ratio has largely exceeded the Africa average since 2015, outpacing growth in the Africa average from 2019 onwards. Over the period, Togo made significant efforts to improve revenue collection procedures and undertook several reforms to mobilise tax revenues. Measures implemented by Togo between 2010 and 2012 included the monitoring and modernisation of revenue collection and information systems, as well as measures to tackle fraud and tax evasion. Another reform established the OTR (Office Togolais des recettes), which unified customs and tax services into a single administration in 2014. Togo introduced tax identification numbers, reduced tax exemptions and established controls to combat corruption (IMF, 2019[31]).
Note: The Africa average should be interpreted with caution as data for social security contributions are not available or are partial in a few countries.2 See the country tables in Chapter 4 for further information.
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
In 2022 and 2023, Togo broadened VAT coverage to include services delivered via electronic platforms and improved tax administration by implementing VAT collection through withholding agents (IMF, 2024[32]). Togo is thus one of several African countries that have reformed their tax system in response to the rapid growth in the digital economy over the last decade; Box 1.3 summarises measures taken by Kenya and other African countries to address this emerging challenge.
Resource endowments significantly influence tax-to-GDP ratios (see Box 1.2), and this is particularly true for Chad, whose tax revenues have been highly sensitive to changes in oil prices. Chad recorded a significant decrease in tax revenues as a percentage of GDP between 2011 and 2016, from 13.1% (its highest level) to 3.6% (its lowest level). This was mainly caused by a decrease in revenues from CIT, which predominantly comes from oil companies. Oil prices fell between mid-2014 and early 2016, after which they were volatile (especially during and after the COVID-19 pandemic) and tax revenues as a share of GDP fluctuated accordingly. The surge in oil prices after the COVID-19 pandemic led tax revenues to increase by 2.5 p.p. of GDP between 2020 and 2023 to reach their highest level since 2011.
Like other countries around the world, African countries face a complex challenge in taxing digital platforms and digital services in an increasingly digitalised global economy. The digital economy has transformed how businesses operate, enabling companies to generate significant profits in countries where they have no physical presence, allowing multinational corporations to minimise tax obligations and causing significant revenue losses for African countries. The OECD has developed a comprehensive framework to address the tax challenges arising from the digitalisation of the economy as part of the OECD/G20 BEPS Project (OECD, 2021[33]).
Kenya has taken steps to ensure its tax system keeps up with these emerging business trends and modernisation. It enacted a digital services tax (DST) through the Finance Act 2020 at a rate of 1.5%, which took effect in January 2021 under Legal Notice 207 of 2020. Also, the VAT (Digital Marketplace Supply) was introduced under Regulations, 2020 (Legal notice 190 of 2020). This targets companies conducting business over the internet or through digital marketplaces. The Parent Laws for these Regulations are the VAT Act 2013 and the Income Tax Act 2019. Reference is also made to the Tax Procedures Act 2015.
Subsequently, the Tax Laws (Amendment) Act, 2024 that took effect from 27 December 2024 introduced the following measures:
Taxation of income from operation of digital marketplace or platform and digital content monetisation. The Act proposed to tax the income of a resident or non-resident person who owns or operates a digital marketplace or platform, or who makes or facilitates payment in respect of digital content monetisation, goods, property or services. The tax will apply at the rate of 20% for non-residents and 5% for residents.
Repeal of provisions of the DST and introduction of a Significant Economic Presence (SEP) Tax at the rate of 3% of the deemed taxable profit. The tax will be payable by a non-resident person whose income from the provision of services is derived from or accrued in Kenya through a business carried out over a digital marketplace.
This transition appears to be part of the government's effort to broaden the digital tax net and address challenges previously encountered under DST. With the enactment of the SEP Tax, Kenya has become one of the first African countries to adopt this tax system. When compared to other East African countries, such as Uganda and Tanzania, which impose DST rates of 5% and 2% respectively, Kenya now has the second-highest digital tax rate in the region under the SEP regime.
The tax burden for non-residents under the SEP Tax will be significantly higher at the rate of 3% profit revenue as opposed to the DST which was applicable at the rate of 1.5% of the gross revenue. However, unlike the DST regime, the SEP Tax includes exemptions, such as:
Non-resident persons who offer digital services through a permanent establishment in Kenya;
Non-resident persons who carry on the business of transmitting messages by cables, radio, optical fibre, television, broadcasting, internet, satellite or other similar methods of communication income subject to withholding tax;
Non-resident persons providing digital services to an airline in which the Government of Kenya has at least 45% shareholding; and
Non-resident persons with an annual turnover of less than KSG 5 000 000.
Over time, Kenya has raised significant revenue from the digital space through implementation of the digital taxes: the DST and VAT on Digital Market Supply have contributed about KSH 17.98 billion in the economy for the last four years (Figure 1.11). These taxes are mostly collected from non-resident taxpayers in the digital economy, which include the digital giant companies.
Source: Kenya Revenue Authority
Source: Information on Kenyan DST was co-authored with the Revenue Statistics in Africa focal point in Kenya Revenue Authority. Information on other countries’ measures related to the digital economy was provided by the focal points of Nigeria, Zambia and Morocco during the Revenue Statistics in Africa technical workshop In June 2025.
The composition of a country’s tax revenues across different tax types is known as its tax structure or tax mix. This is an important indicator since different taxes have different economic and social effects. The tax structures in the 38 countries in this publication reflect different policy choices, economic structures and conditions, tax administration capabilities and historical factors.
Tax structures in 2023
The African countries covered in this report can be divided into three broad groups according to their principal source of revenue: (i) VAT; (ii) other taxes on goods and services3; and (iii) income taxes. Figure 1.12 shows the decomposition of tax revenues across all countries included in this publication, differentiating between income taxes (both personal and corporate), social security contributions, and taxes on goods and services (including VAT and other goods and services taxes).
Taxes on goods and services were the principal source of tax revenues for 26 countries (the first two groups of countries in Figure 1.12). Among these countries, taxes on goods and services generated between 36.2% of tax revenues in Tunisia and 86.0% of tax revenues in Somalia. VAT accounted for the largest share of revenues from taxes on goods and services in most of the countries in the first group of 15 countries (which also contains the ‘Africa average’ tax structure5), whereas other taxes on goods and services4 were the main source for the eleven countries in the second group.
Percentage of total tax revenues
Notes: Figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only), Somalia and South Africa. Social security contributions are estimated for 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. The sum of the average shares of the different categories for Africa may not equal the reported total.4 In Ghana, Lesotho, Malawi, Mauritania, Nigeria, Sierra Leone and Uganda, revenues from property taxes are mainly levied by local governments for which data on revenue are not available.
The breakdown of revenue from income tax by personal income tax and corporate income tax is not available in Botswana.
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
For twelve countries, taxes on income and profits accounted for the principal share of total tax revenues. Within this group, income tax revenues ranged from 45.6% of total tax revenues in Egypt to 83.7% in Equatorial Guinea. Twenty-four of the 38 countries received a higher share of tax revenues from CIT than from PIT in 2023. The share of CIT revenue was particularly large in Chad and Equatorial Guinea, where it accounted for more than 60% of total taxes.
The prominence of social security contributions in total tax revenues varies greatly across the countries for which data is available in this publication.2 In 2023, the share was highest in Tunisia, Morocco and Mali, exceeding 20% of total taxation, while in the remaining countries social security contributions ranged from less than 0.2% of total tax revenues in Cabo Verde to around 11.8% in Eswatini (Figure 1.12).
The variation in social security contributions reflects a diversity of social security programmes and contribution rates, with many countries using a variety of systems to fund social benefits. For example, social security contributions in South Africa finance the Unemployment Insurance Fund while other benefits, such as social assistance programmes covering old age, sickness and maternity, are financed by general revenues. In contrast, social security schemes in Morocco and Tunisia are modelled on the French system and provide a wide range of benefits on a contributory basis, including old age, disability, sickness and maternity, work injury (Tunisia), unemployment (Morocco) and family benefits (SSA, 2015[34]).
Note: The averages for Africa, Asia-Pacific, LAC and the OECD are unweighted. Data for 2022 are used for the OECD average as 2023 data are not available.
The Africa average should be interpreted with caution as data for social security contributions are not available or are partial in certain countries2 and are estimated for 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. The sum of the average shares of the different categories for Africa may not equal the reported total.4
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
Figure 1.13 compares the tax structures of African countries with other regions, VAT revenues accounted for 26.6% of total tax revenues on average, higher than the Asia-Pacific average of 25.8% but lower than the LAC average of 28.5%. All three regions had a significantly larger share of tax revenues collected from VAT compared to the average for OECD countries, for which VAT revenues accounted for 20.8% of total tax revenues (2022 figure). VAT revenues for the Africa average were lower than all the other regions when measured as a share of GDP (4.5% of GDP in Africa, compared to 5.3% in Asia-Pacific, 6.0% in the LAC region and 7.0% in the OECD).
Relative to the other regions or country groups, Africa recorded the highest share of non-VAT taxes on goods and services (other taxes on goods and services3 in the graphs) at 25.5% of total tax revenues. Trade taxes (mainly import duties) represent an important source of revenue for Africa and amounted to about half of non-VAT taxes on goods and services revenues in 2023. This share is likely to evolve with the ongoing implementation of the African Continental Free Trade Area (AfCFTA). The share of non-VAT taxes on goods and services may also increase due to the growing use of health taxes in African countries (see Box 1.4).
CIT revenues in Africa averaged 21.4% of total tax revenues in 2023, higher than the Asia-Pacific, LAC and OECD average shares (19.5%, 18.7%, and 12.0% [2022 figure], respectively). Reported as a percentage of GDP, the average level of CIT revenues for Africa (3.3%) was slightly lower than the other regional averages in 2023 (around 3.4% in Asia-Pacific, 3.8% in LAC and 3.9% for the OECD (2022 figure) (Figure 1.13). The Africa average share of PIT revenues amounted to 16.5% of total tax revenues in 2023. This was broadly in line with the Asia-Pacific average, below the OECD average of 23.6% (2022 figure) and significantly higher than the LAC average of 9.5%. As a percentage of GDP, the average level of PIT revenues across the OECD was nearly triple the Africa average.
Evolution of tax structures, 2013‑23
Between 2013 and 2023, the Africa average tax structure shifted slightly towards a greater share for PIT, CIT and social security contributions and a marginally smaller share for consumption-related taxes (Figure 1.14).
The share of VAT revenues in the average tax structure for the African countries in this publication has slightly declined although these revenues increased as a share of GDP in 2023 to 4.5%. In contrast, the share of PIT, CIT and social security contributions in total tax revenues increased by 0.2 p.p., 0.7 p.p. and 0.6 p.p. respectively between 2013 and 2023.
Note: The Africa average is unweighted. The Africa average should be interpreted with caution as data for social security contributions are not available or are only partially available in certain countries3 and are estimated for 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. The sum of the average shares of the different categories for Africa may not equal the reported total.4
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
African governments face growing pressure to secure sustainable health financing and strengthen their health systems in light of structural vulnerabilities and reductions in official development assistance to the health sector. Addressing this challenge requires a comprehensive strategy that includes strengthening domestic resource mobilisation (Africa Centres for Disease Control and Prevention, 2025[35]).
Health taxes can be part of the solution. In addition to generating additional tax revenues, health taxes can contribute to reducing the consumption of unhealthy products, thereby reducing long-term health care costs and increasing long-term labour productivity. Many African governments have already implemented health taxes but not necessarily to the extent that they affect public health outcomes or generate significant revenues (Vital Strategies, 2025[36]).
The WHO strongly advocates for governments to implement or revise health tax policies to better align with public health objectives (WHO, 2025[37]; OECD, 2024[3]). ATAF is supporting African governments to implement effective health taxes, including via a health taxes project launched in 2023. Revenue Statistics in Africa provides insights into the revenues from health taxes in African countries, helping to track and compare health tax revenues across countries and over time.
Health taxes are defined as ‘taxes levied on products that have a negative public health impact’ (WHO, 2025[38]). They are generally levied in the form of excises (taxes levied on specific goods), either directly on the component with the negative health impact (e.g. alcohol volume or grams of sugar, salt) or on the product that contains the component that is harmful to consumers’ health (e.g. per litre of alcoholic beverage or per pack of cigarettes). Although excise taxes interact with customs duties and value-added tax (VAT), this section focuses on revenues from excise taxes.
Data on revenues is essential for designing and evaluating health taxes, though it must be interpreted with caution (OECD, 2024[3]). Revenues depend on tax design, consumption levels and cross-border shopping as well as price elasticity. For example, a drop in revenue may indicate success in reducing harmful consumption of one product, or may indicate substitution to alternatives that are untaxed or taxed at a lower level (e.g., new nicotine products) undermining health goals, while differences in health tax revenues across countries may reflect differences in consumption patterns rather than tax effectiveness. Previous research has shown alcohol and tobacco tend to be price inelastic (meaning demand does not respond strongly to changes in price), while sugar-sweetened beverages (SSBs) are more elastic, especially among low-income groups.
While the OECD Interpretative Guide does not include a ‘health tax’ category, data that countries provide on revenues from specific taxes (as shown in the country-specific tables in Chapter 5 of this report) allows identification of taxes with health-related policy goals, mainly excise taxes on alcohol, tobacco and SSBs. However, comparing health tax revenues across countries and over time is difficult. In addition to gaps in the reported data, different reporting practices by countries further limit comparability. For example, some countries aggregate revenue from alcoholic and non-alcoholic beverages, while others break them down by product type; some countries only report revenue from cigarettes and not from all tobacco products.
Figure 1.15 presents revenues from health excise taxes as a share of GDP and of total tax revenues in 2023 for 25 African countries for which granular data is available. In 2023, excise taxes on tobacco, alcohol and SSBs combined ranged from less than 0.1% of GDP in nine countries (Cameroon, the Republic of the Congo, Equatorial Guinea, Eswatini, Liberia, Mauritania, Morocco, Niger and South Africa) to 2.4% in Mauritius. On average across African countries in this report, revenue from health excise taxes equated to 0.44% of GDP and generated 2.12% of total tax revenues in 2023. In comparison, the OECD average across OECD stood at 0.74% of GDP in 2022 and generated 2.24% of total tax revenues (OECD, 2024[3]).
In 2023, revenues from excises taxes on tobacco and alcohol amounted to around 0.3% of GDP and 1.4% of total tax revenues respectively on average across the 25 African countries. These figures should be treated with caution as it is not possible to identify the precise amount of excise health tax revenue by product for each country and results depend in part on the granularity of excise data available. For example, some countries reported revenue from tobacco excise taxes in 2023 but did not report revenue from alcohol excise taxes and vice versa; other countries reported revenue from alcohol and tobacco excises together. Twelve countries reported both alcohol excise taxes and tobacco excise taxes of which seven countries (Côte d’Ivoire, Egypt, Madagascar, Mali, Mauritius, Senegal and Tunisia) generated more revenues from tobacco and five countries (Democratic Republic of the Congo, Mozambique, Seychelles, Uganda and Zambia) generated more revenues from alcohol.
Note: Health excise tax revenue is the sum of reported tax revenue collected from excise taxes levied on tobacco, alcohol and SSBs (category 5121) for all reporting countries. The Africa averages for excise tax revenue by product is calculated based on 17 countries for tobacco, 18 countries for alcohol and six countries for SSBs whereas the Africa average for the total health excise revenue is calculated as the average of the 25 African countries that reported one or more health excises in 2023. Because of missing values, the sum of the Africa averages of the tobacco, alcohol and SSBs excise revenue will not add up to the Africa average for the total health excise revenue.
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
Taxes on SSBs are relatively new, compared to alcohol and tobacco taxes in Africa and globally. Mauritius introduced a tax on sugar content of soft drinks in 2013 (currently levied at twelve cents per gram of sugar on non-alcoholic beverages) (Mauritius Revenue Authority, 2025[39]). South Africa introduced the “health promotion levy” (an excise on sugary drinks) in 2018 that led to a 29% drop in beverage purchases per person and a 51% reduction in sugar intake as less sugar was added to drinks (Vital Strategies, 2025[36]). In 2019, Seychelles introduced a sugary drink tax to address rising obesity (WHO, 2019[40]). Botswana implemented an SSB levy in 2021 to help “restore fiscal stability” post-pandemic (P4H Network, 2025[41]).
Six countries (Botswana, Madagascar, Mauritius, Seychelles, South Africa and Uganda) reported revenues from SSB taxes for this edition of Revenue Statistics in Africa. In these countries, SSB revenues ranged from 0.01% of GDP in Botswana and Madagascar to 0.21% of GDP in Seychelles and were less than 1.0% of total tax revenues in all 6 countries. However, according to the (World Bank, 2023[42]) another 24 African countries that did not report data on excise taxes for Revenue Statistics in Africa levied on SSBs in 2023.
The data gaps identified in the reporting of health-related excises across African countries in this section demonstrate the need for better and more granular data to enable accurate measurement of health tax revenue. Increasing granularity and comparability of data on excise revenues can inform the design of health taxes and enhance the effectiveness of policy evaluations. Detailed and comparable data on revenues from health taxes allows precise monitoring of these revenues and analysis of the health taxes’ impact on public health objectives and consumption patterns. In addition, granular data is essential for cross-country comparisons, enabling policymakers to benchmark performance across countries with differing tax structures and consumption patterns.
VAT revenue ratio
This section discusses the VAT revenue ratio (VRR) for almost all the countries included in this publication. The VRR “measures the difference between the VAT revenue actually collected and what would theoretically be raised if VAT was applied at the standard rate to the entire potential tax base in a “pure” VAT regime and all revenue was collected” (OECD, 2024[43]). The VRR is the ratio of actual VAT revenues to the product of final consumption (net of VAT revenues) and the standard VAT rate. The calculation is shown below:
This indicator provides insights into VAT revenue loss related to exemptions and reduced rates, fraud, evasion and tax planning as well as weaknesses in tax administrations. However, the indicator needs to be interpreted with caution and with reference to the underlying characteristics of the VAT system in each country, as a high VRR could result from cascading effects5 or failure to refund VAT input credits. Other factors may increase the ratio, for example when place-of-taxation rules for international trade diverge from the destination principle (OECD, 2024[43]).
Informality can also have an impact on VRRs. In many African countries, a high proportion of the workforce operates in the informal sector. Not being registered for tax purposes, they do not benefit from VAT refunds for their inputs (AfDB, OECD, UNDP, 2016[44]). The interpretation of the VRR is also more difficult for countries relying significantly on tourism: these countries may record a high VRR because purchases by non-residents are not included in final consumption expenditure (the denominator) but in exports whereas the VAT on these purchases is included in the overall VAT revenues (the numerator) (Keen, 2013[45]). Another factor that may be linked to the previous point relates to the level of trade: countries with relatively a high ratio of trade to GDP tend to show high VRRs, probably because collecting VAT at the point of entry of a country is easier than collecting in the domestic market (Ebrill, L. P., Keen, M., & Perry, V. J., 2001[46]).
Figure 1.16 shows the VRR for the 36 countries in this publication that operate a VAT system (which excludes Liberia and Somalia). In 2023, the average VRR for these countries stood at 0.37, which was below the OECD average of 0.58 (in 2022, latest available figure). The VRR ranged widely in Africa: Seychelles, Mauritius and Zambia had the highest VRRs (0.95, 0.65 and 0.62, respectively) while Chad and Equatorial Guinea had the lowest (0.11 and 0.09 respectively).
Seychelles has a relatively broad-based VAT system and there are no reduced VAT rates, although there are a few VAT exemptions for basic necessities such as agricultural and pharmaceutical products and for fuels (OECD, 2020[47]). In addition, the high VRR could be partly due to the importance of tourism: revenue from VAT is primarily generated through Seychelles’ tourism sector, which is taxed at the standard rate and contributes about half of total VAT receipts (OECD, 2020[47]).
The tourism sector also plays an important role in the economy of Mauritius (World Bank, 2024[48]) and could partly explain its higher VRR. Although the VRR of Mauritius is relatively high, (IMF, 2024[49]) argues that VAT collection in the country could be improved by removing exemptions, addressing compliance issues and lowering VAT thresholds to widen the tax net.
Note: The figure does not include Somalia and Liberia as they do not operate a VAT system.
Source: VAT rates and the OECD VRR are sourced from Consumption Tax Trends (OECD, 2024[43]), the final expenditure consumption figures from the World Economic Outlook (IMF, 2025[5]) and VAT revenues from the country tables in Chapter 5.
In Zambia, the VAT withholding system introduced in 2017 proved highly effective, raising annual VAT revenue by an estimated 13% and significantly improving compliance, with affected firms 13% more likely to file returns (UNU-WIDER, 2023[50]). The system was suspended in mid-2025 following the rollout of a nationwide e-invoicing system for VAT. Collections are expected to continue rising under this new framework (IMF, 2025[51]).
Chad’s low VRR is linked to low levels of VAT revenue collection, which amounted to 1.3% of GDP in 2023 (the second-lowest level in this report) as a result of weak VAT administration, VAT exemptions, deficiencies in the VAT refund mechanism and the large informal sector (IMF, 2019[52]). In addition, many essential goods and services in Chad are either exempt or subject to reduced rates (e.g., 9% for local products) (Gole, 2024[53]). The low VRR in Equatorial Guinea may be mainly explained by the exemption of VAT on the oil and gas sector in Equatorial Guinea (Pwc, 2024[54]).
The value of trade (mostly imports) exceeds GDP in Seychelles (105%) and Mauritius (180%) while it is less than 70% in Chad and Equatorial Guinea (World Bank, 2025[55]). This supports findings that a high level of trade is generally associated with a higher VRR (Ebrill, L. P., Keen, M., & Perry, V. J., 2001[46]).
Environmentally related tax revenues
Through the Paris Agreement of 2016, countries have committed to decarbonising their economies by the middle of this century, implying a shift away from fossil fuels as a source of energy. To reduce emissions and drive decarbonisation, more and more countries are deploying environmentally-related taxes and price-based policy instruments. By incorporating a price signal into consumer decisions, systems of environmental taxation give effect to the polluter-pays principle to favour greener over more polluting economic activities. Well-designed systems of environmental taxation in effect can thereby influence environmental outcomes by encouraging businesses and households to consider the environmental costs of their behaviour.
The 2023 Africa Climate Summit, Nairobi Declaration takes note that in addressing environmentally-related tax revenues, it is crucial to emphasise the acute vulnerabilities many African countries grapple with, arising from the unpredictable and devastating impacts of climate change (African Union, 2023[56]). Prolonged droughts, unyielding floods and wildfires brought by climate change inflict a heavy humanitarian and economic toll, undermining livelihoods, health and education, and threatening peace and security across the continent. Despite not being historical contributors to global warming, African countries bear its harsh consequences, underscoring the urgent need for global collaborative efforts.
An environmentally-related tax is a tax whose base is a physical unit (or a proxy of a physical unit) of something that has a proven, specific harmful impact on the environment regardless of whether the tax is intended to change behaviours or is levied for another purpose (OECD, 2005[57]). Revenues from taxes on energy can increase in the medium term if countries increase effective tax rates on the carbon content of fuels (Marten and Van Dender, 2019[58]). A joint ITF and OECD study (OECD/ITF, 2019[59]) shows how revenues from road transport can be stabilised in the long term through a mix of taxing distance driven, vehicles and fuel.
Although environmentally-related taxes are not a category in the standard OECD classification of tax revenues, they can be identified through the detailed list of specific taxes included for most countries within this overarching classification. It is on this basis that they are included in the OECD Policy Instruments for the Environment (PINE) database (OECD, 2024[60]).6 In 2020, the OECD started collecting Environmentally Related Tax Revenue (ERTR) accounts in line with the System of Environmental and Economic Accounting; ERTRs are disaggregated by industries and households.
A detailed examination of country-specific taxes for 35 of the 38 African countries7 in this report with ERTR data demonstrates that, on average, revenues from environmentally related taxes amounted to 1.1% of GDP in 2023, a higher level than the LAC and Asia-Pacific unweighted averages of 0.9% and 0.7% of GDP, respectively but lower than the OECD (1.8% of GDP). Across Africa, ERTRs ranged from less than 0.1% of GDP in the Republic of the Congo and Nigeria to 3.6% in Seychelles (Figure 1.17). These figures should be treated with caution as it is not always possible to identify the precise level of ERTRs for each country; the level of revenues shown in Figure 1.17. depends in part on the granularity of tax revenue data available.
Percentage of GDP
Note: The figures of environmentally related tax revenues depend on the granularity of tax revenue data provided by participating countries. Burkina Faso, Guinea, and Somalia are excluded as it has not been possible to identify environmentally related tax revenue data in 2023.
Source: Authors’ calculations based on data from (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx and the PINE database for the OECD, LAC and Asia-Pacific averages (OECD, 2024[60])
ERTRs can be split into different categories of tax base, notably energy (e.g., fossil fuels and electricity), transport, pollution and resources (e.g., mining and fossil fuel extraction).
In 2023, revenues from energy taxes generated the majority of ERTRs among the countries in this publication (0.7% of GDP on average). Taxes on energy products accounted for the largest share of ERTRs in 25 of the 34 countries.
Revenues from motor vehicles and transport services accounted for most of the remainder (0.3% of GDP on average). They were the main source of ERTRs for nine countries.
Revenues from other environmentally related bases are smaller, at 0.1% of GDP on average for natural resources and pollution combined.
On average, the structure of ERTRs in Africa is very similar to the OECD and the LAC region. By contrast, Asia-Pacific economies rely almost equally on taxes on energy, resources and transport.
Analysis of environmental taxes in the Africa region needs to be understood in the context of the extensive use of fossil fuel subsidies. Among the countries in this publication, Egypt, Gabon, Ghana and Nigeria provided fossil fuel consumption subsidies amounting to about USD 66.5 billion, USD 385.4 million, USD 2.6 billion and USD 18.7 billion, respectively, in 2022 (IEA, 2023[61]). These subsidies may add significantly to countries’ borrowing needs, forcing some African countries (such as Ghana, Kenya and Nigeria) to remove some subsidies in 2022 or 2023 (Africa Business Insider, 2023[62]).
Regional communities
The 38 countries included in this publication belong to one or more Regional Economic Communities (RECs) on the continent, which facilitate economic integration between their members (African Union, 2024[63]). This section describes tax revenue trends and tax structures in five RECs, namely the East African Community (EAC), the Economic Community of Central African States (ECCAS), the Economic Community of West African States (ECOWAS), the Arab Maghreb Union (AMU) and the Southern African Development Community (SADC).8
Revenue Statistics in Africa includes many but not all members of these RECs; coverage ranges from 57% for EAC to 80% for SADC and 87% for ECOWAS. The indicators showing the average level and structure of tax revenues across the five RECs only include the member states participating in Revenue Statistics in Africa.
The average tax-to-GDP ratios for AMU and SADC exceeded the Africa average of 16.1% in 2023 (at 25.4% and 19.0% of GDP, respectively), while the average tax-to-GDP ratios for ECOWAS, EAC and ECCAS were below the Africa average (at 13.9%, 13.8% and 13.2%, respectively). Between 2013 and 2023, average tax-to-GDP ratios rose in all five RECs, with increases ranging from 1.3 p.p. in ECOWAS to 2.7 p.p. in AMU. The average tax-to-GDP ratio increased by 1.6 p.p. in EAC, by 1.7 p.p. in SADC and by 2.4 p.p. in ECCAS over the same period (Figure 1.18).
Note: The Africa and the REC averages should be interpreted with caution as data for social security contributions are not available or are partial in certain countries2 or are estimated in 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. The average for each REC is calculated with reference to the member countries participating in Revenue Statistics in Africa.
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
Tax structures varied across the RECs in 2023, albeit with some commonalities between them.
Income taxes were the principal source of revenues for ECCAS countries on average, with CIT representing the highest share of total tax revenues (37.9%). CIT revenues contributed a larger share of tax revenues in ECCAS than in any of the other RECs.
Taxes on goods and services were the main source of revenues for EAC, ECOWAS and AMU. Within taxes on goods and services, EAC and AMU generated a slightly larger share of VAT revenues than revenues from non-VAT taxes on goods and services (“other taxes on goods and services” in Figure 1.19). Although ECOWAS has the largest share of VAT revenues among the three RECs, non-VAT taxes on goods and services accounted for the largest share of tax revenues at 30.9%. VAT revenues in these three RECs ranged from 25.1% in AMU to 27.4% in ECOWAS.
Income taxes and taxes on goods and services were equally important as a percentage of total tax revenues for SADC countries on average (47%). VAT was the principal source of SADC tax revenues, amounting to 32.2%, and represented the largest share compared to the other RECs. VAT revenues accounted for twice as much of the tax mix in SADC countries on average than revenues from other taxes on goods and services (14.7%). PIT was the second-largest source of tax revenues in SADC; at 23.2% of tax revenues, the share of PIT was also the largest among all RECs analysed here.
Social security contributions accounted for less than 10% of total tax revenues in all the RECs except AMU, where they contributed to 18.1% of total taxation in 2023.
Note: The Africa average and the REC averages should be interpreted with caution as data on social security contributions are not available or are partial in certain countries2 and are estimated in 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. The REC averages only take into account data from the member countries participating in Revenue Statistics in Africa.8 The sum of the individual shares may not equal the reported total.4
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
As a percentage of GDP, revenues from the main tax categories varied greatly across the RECs:
Average PIT revenues ranged from 1.5% of GDP in ECCAS to 4.7% in SADC while CIT revenues ranged from 2.5% of GDP in ECOWAS to 5.0% in ECCAS. PIT and CIT revenues were of similar magnitude in EAC on average.
VAT revenues and revenues from non-VAT taxes on goods and services were lowest in ECCAS (both 2.7% of GDP) and highest in AMU on average (6.1% and 4.7% of GDP respectively).
Average social security contributions ranged from 0.7% of GDP in SADC to 5.5% of GDP in AMU.
Tax revenues and tax structures by income group
Countries participating in Revenue Statistics in Africa are categorised according to one of four income groups as defined by the World Bank (World Bank, 2024[64]): low income (15 countries), lower middle-income (16 countries), upper middle-income (six countries) and high income (one country, Seychelles). This section presents trends in tax-to-GDP ratios and the tax structure in 2023 by income group, excluding the high-income group because of the limited coverage (Seychelles is thus not included in the analysis).
The average tax-to-GDP ratio for each income group shown in Figure 1.20 confirms the tendency for countries with more developed economies to have higher tax-to-GDP ratios (as discussed in Box 1.2). In 2023, the average tax-to-GDP ratios of the lower middle-income countries and upper middle-income countries were higher than the Africa average, at 17.1% and 18.9% respectively. In contrast, the average tax-to-GDP ratio of low-income countries was 13.0%, which was below the Africa average and below the threshold of 15% considered as a tipping point to accelerate growth and development (Gaspar, Mansour and Vellutini, 2023[65]).
Note: The Africa average and the averages by income groups should be interpreted with caution as data on social security contributions are not available or are partial in certain countries2 and are estimated in 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. Income groupings follow the World Bank classification (World Bank, 2024[64]).
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
A combination of a large informal sector and reliance on foreign aid often leads to low-income countries having a narrower tax base that in turn constrains growth in tax collections (Besley and Persson, 2014[66]) (Bachas, Jensen and Gadenne, 2024[67]). It is especially crucial for low-income countries to increase tax revenues as they often lack steady sources of funding and confront the greatest spending needs.
On average, tax revenues as a share of GDP increased for all income groups between 2013 and 2023. Tax revenues in low-income countries increased by 1.1 p.p. over the period while they rose by 1.8 p.p. in lower middle-income countries and by 1.6 p.p. in upper middle-income countries.
The tax categories contributing most to the increase in tax revenues between 2013 and 2023 vary across income groups. The rise in tax revenues in low-income countries was primarily due to higher income tax revenues, mainly from CIT. Revenues from non-VAT taxes on goods and services were the main factor behind the growth in tax revenues in lower middle-income and upper middle-income countries.
Figure 1.21. presents the tax structure as a percentage of GDP and as a share of total tax revenues for the Africa average and the three income groups. The tax structure in the low-income countries and in lower middle-income countries is characterised by a high reliance on taxes on goods and services (respectively 54.8% and 53.0% of tax revenues in 2023). In contrast, the average tax mix of upper middle-income countries has a greater share of income taxes (57.5%).
Within taxes on goods and services, VAT ranged between 24.2% to 28.9% of total tax revenues across the three income groups. For non-VAT taxes on goods and services, upper middle-income countries showed the lowest share of tax revenues on average while low-income countries recorded the largest share (respectively 12.0% and 30.1% of tax revenues). The share of PIT in 2023 was highest in lower middle-income countries (16.5% of total tax revenues) and lowest in low-income countries (15.7%).
(Bachas, Jensen and Gadenne, 2024[67]) explain that taxes on goods and services as a share of total taxes tend to decrease with economic development while the share of PIT tends to increase. They contend that the PIT base expands as countries develop and the workforce transitions from self‑employment to dependant employment (contributing to a transition from the informal sector to the formal sector). This transition is supported by the increasing market share of larger firms, which leads to a larger share of employees in the workforce. These trends tend to result in higher PIT revenues as well as a smaller informal sector in countries with higher incomes. Low‑income countries find it difficult to enforce taxes on self-employed and low-earning workers and tend to exempt this sector of the workforce even though it tends to represent most workers.
Note: The Africa average and the averages by income groups should be interpreted with caution as data on social security contributions are not available or are partial in certain countries2 and are estimated in 2023 for Equatorial Guinea, Mauritania, Senegal and Tunisia. Income groupings follow World Bank classification (World Bank, 2024[64]). The sum of the individual shares may not equal the reported total.4
Source: Authors’ calculations based on (OECD/AUC/ATAF, 2025[4]), “Revenue Statistics in Africa - Comparative tax and non-tax revenues”, OECD data explorer, https://data-explorer.oecd.org/s/dx.
Analysis of taxation by level of government is limited by the fact that data on sub-national tax revenues are only available for six countries participating in this publication: Eswatini, Mauritius, Morocco, Nigeria9, Somalia and South Africa. In 2023, sub-national government revenues accounted for 0.2% of total tax revenues in Mauritius, 2.4% in Eswatini, 3.0% in Morocco, 4.3% in South Africa, 12.2% in Nigeria and 33.0% in Somalia.
Revenues from property taxes are the most important source of reported tax revenue for sub-national governments in Eswatini, Mauritius, Morocco and South Africa. They accounted for all the reported tax revenue collected locally in Eswatini, Mauritius and South Africa and for more than 80% in Morocco. In contrast, sub-national government tax revenues in Nigeria are mostly sourced from income taxes and in Somalia from taxes on goods and services.
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← 1. The Africa average should be interpreted with caution as data on social security contributions are not available for Chad, the Democratic Republic of the Congo (prior to 2012), Equatorial Guinea (prior to 2013), The Gambia, Guinea, Liberia, Madagascar (prior to 2011), Namibia (prior to 2009), the Republic of the Congo (prior to 2018), Sierra Leone (prior to 2018), Togo and Uganda and Zambia and are only partially available for Cameroon and Senegal. Social security contributions for Botswana, Lesotho and Malawi are deemed to be zero as they do not meet the criteria to be classified as social security contributions set out in the OECD classification of taxes in the OECD Interpretative Guide.
← 2. Data on social security contributions are not available for Chad, the Democratic Republic of the Congo (prior to 2012), Equatorial Guinea (prior to 2013), the Gambia, Guinea, Liberia, Madagascar (prior to 2011), Namibia (prior to 2009), the Republic of the Congo (prior to 2018), Sierra Leone (prior to 2018), Togo, and Uganda and Zambia and are only partially available in Cameroon and Senegal. Social security contributions for Botswana, Lesotho and Malawi are deemed to be zero as they do not meet the criteria to be classified as social security contributions set out in the OECD classification of taxes in the OECD Interpretative Guide.
← 3. Other taxes goods and services include general taxes other than VAT (e.g. sales taxes), taxes on specific goods and services other than excises and import duties (e.g. taxes on exports, taxes on specific services) and all taxes on use of goods, or on permission to use goods or perform activities (e.g. taxes in respect of motor vehicles, business licences). When excise duties and import duties are not specified separately, they are also included in other taxes on goods and services.
← 4. The Africa and sub-regional averages for each tax category as a percentage of GDP or as a percentage of total tax revenues (tax structure) are calculated using countries with available data, this means that countries with missing data for a main tax category (e.g. PIT, CIT, SSC) are excluded from the averages of that category which may lead to its misestimation. For example, countries that operate a social security system but were not able to report social security contributions revenues are excluded from the averages of the category 2000 social security contributions. Consequently, the sum of the different category averages may not coincide with the Africa or sub-regional averages of total tax revenue.
← 5. ‘Cascading’ refers to a situation whereby a tax is levied on a product at every stage of its production and distribution without allowing for a deduction of the tax paid at previous stages. For example, a wholesaler cannot claim a VAT credit for the raw materials he bought for its own production because no VAT was paid on them initially.
← 6. The PINE database classifies environmentally related taxes under four bases:
Energy: This covers taxation of energy products such as fossil fuels and electricity also including fuels for transportation such as petrol and diesel. All CO2-related taxes are in this category.
Motor vehicles and transport services: This category includes imports or sales taxes on transport equipment, recurrent taxes on ownership, registration or road use of motor vehicles, and other transport-related taxes.
Resources: This category includes taxes on mining and quarrying, forestry, wildlife and fisheries.
Pollution: This category includes taxes on ozone-depleting substances, water and wastewater, waste management.
← 7. Burkina Faso, Guinea and Somalia are excluded as it has not been possible to identify environmentally related tax revenue data in 2023.
← 8. The composition of these RECs is as follows:
East African Community (EAC): Burundi, the Democratic Republic of the Congo, Kenya, Rwanda, Somalia, South Sudan, Uganda and Tanzania. All EAC countries except Burundi, South Sudan and Tanzania are covered in this publication.
Economic Community of Central African States (ECCAS): Angola, Burundi, Cameroon, the Central African Republic, Congo, Gabon, Equatorial Guinea, DRC, Rwanda, Sao Tome and Principe and Chad. All countries in ECCAS except Angola, Burundi, the Central African Republic and Sao Tome and Principe are covered in this publication.
Economic Community of West African States (ECOWAS): Benin, Burkina Faso, Cabo Verde, Cote d'Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. All ECOWAS countries except Benin and Guinea-Bissau are covered in this publication.
Southern African Development Community (SADC): Angola, Botswana, the Democratic Republic of the Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe. All countries in SADC except Angola, Tanzania and Zimbabwe are covered in this publication.
Arab Maghreb Union (AMU): Algeria, Libya, Mauritania, Morocco and Tunisia. Algeria and Libya are not covered in this publication.
← 9. Sub-national tax revenue figures for Nigeria include state revenues but exclude local government revenues.