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Make Domestic Resource Mobilization Work for Africa’s Structural Transformation (By Adamon Mukasa and Anthony Simpasa)

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2 years ago

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African Development Bank

The implementation of the United Nations’ Agenda 2030 for sustainable development and the African Union’s Agenda 2063 hinges on Africa’s ability to mobilize sufficient and timely financial resources

ABIDJAN, Ivory Coast, August 27, 2024/APO Group/ — 

By  Adamon Mukasa and Anthony Simpasa

The implementation of the United Nations’ Agenda 2030 for sustainable development (https://apo-opa.co/4g2kWSb) and the African Union’s Agenda 2063 (https://apo-opa.co/4767Ak0) hinges on Africa’s ability to mobilize sufficient and timely financial resources. The recently released African Economic Outlook (AEO) 2024 (https://apo-opa.co/3yWpFEs) report by the African Development Bank estimates that the continent needs to close, by 2030, an annual financing gap of US$402.2 billion to fast-track its structural transformation process. Scaling up domestic resource mobilization (DRM) will be key to achieving that objective. 

African governments have always recognised the central role of increased mobilization and effective use of domestic resources to achieving sustainable development goals (SDGs) and other national development objectives. Through the 2015 Addis Ababa Action Agenda (https://apo-opa.co/4cG67ly), African leaders reaffirmed their commitment to “further strengthening the mobilization and effective use of domestic resources”, underscored by the principle of national ownership established in the Paris Declaration on Aid Effectiveness (https://apo-opa.co/3WZXZ9v). African governments have thus stepped up their policy levers towards improvement of DRM and combatting tax evasion and avoidance. These initiatives include, for example, the work of the African Union Development Agency-New Partnership for Africa’s Development (AUDA-NEPAD) (https://apo-opa.co/3ARAhEU), the High-Level Panel on Illicit Financial Flows (IFFs) (https://apo-opa.co/4cK2efo), the African Union Assembly Special Declaration on IFFs (https://apo-opa.co/4g1ixXN), the Africa Initiative of the Global Forum on Transparency and Exchange of Information for tax purposes (https://apo-opa.co/4gfrvRJ), the African Tax Administration Forum (https://apo-opa.co/4dWXpA9), and the establishment of Medium-Term Revenue Strategies (MTRS) (https://apo-opa.co/3MjW4HY). These initiatives emphasize the need for mobilization of domestic resources at scale and addressing resource leakages. 

Scaling up resources to fast-track structural transformation in Africa will require addressing underlying challenges and constraints to domestic resource mobilization

Stocktaking of Africa’s DRM progress 
Africa has increasingly mobilized its domestic resources to finance its development priorities in sectors such as health and education, infrastructure development, industrialization, and agriculture. In absolute terms, Africa’s government revenues (tax and non-tax revenues, excluding grants) increased by almost 40 percent from about US$435 billion in 2015 to US$604 billion in 2022 and are projected to reach about US$626 billion in 2025. Tax revenues account for more than 75 percent of the continent’s total domestically generated revenues. However, in relative terms, the continent underperforms its peers. Data from the AEO 2024 indicate that Africa’s average general government revenue declined substantially from 23.5 percent of GDP in 2010 to 19.3 percent of GDP in 2021. This is due to a steady decline in tax revenues, over the same period, from 16.1 percent of GDP in 2010 to 14.2 percent of GDP in 2021. In particular, since 2015, Africa’s average tax revenue ratio relative to GDP has consistently been below the 15 percent minimum (https://apo-opa.co/3X4DYPi) required for a developing country to adequately finance its SDGs. Africa’s revenue ratio is well below the average for Latin America (23.9 percent) and less than half the average for Europe and Central Asia (31.7 percent). Africa’s average low tax revenue ratio mask significant heterogeneity among individual African countries. As shown in figure 2, the average tax-to-GDP ratio over 2015-2025 falls short of the 15 percent threshold in 34 countries, spread across all of Africa’s five regions, calling therefore for urgent actions to scale up DRM and align it with financing needs for structural transformation. 

Aligning DRM with financing needs for structural transformation 
According to findings in the AEO (2024), African countries need to increase their tax-to-GDP ratio by a median value of about 13.2 percentage points—bringing the current median ratio to 27.2 percent of GDP—to be able to close the estimated financing gap for structural transformation. This is under the assumption that additional mobilized tax revenues are efficiently deployed and allocated to financing structural transformation. While the estimated tax effort may be within reach of many African countries, it remains unattainable for others given their relative low potential tax-to-GDP ratio. Hence, out of the 39 African countries with data on tax capacity, the report found that in 18 countries (46.2 percent of them), the level of tax-to-GDP ratio required to mobilize resources for structural transformation exceeds the maximum amount of tax revenues that could be collected given socioeconomic and institutional factors (Figure 3). This means that even if those countries exhaust their current tax capacity, they may not be able to close their respective estimated financing gap by 2030. 

Scaling up resources to fast-track structural transformation in Africa will require addressing underlying challenges and constraints to domestic resource mobilization. These challenges  include inter alia: i) High levels of informality (about 86 percent of total jobs on the continent are informal) (https://apo-opa.co/3T4YKwQ); ii)  Weak tax administration capacities (https://apo-opa.co/4cKmfm3), leading to inefficient tax collection; iii) Complex tax law and rules, which reduce compliance rates; iv) Low domestic savings (prior to the pandemic, Africa had one of the lowest gross domestic savings rates in the world, at 13.6 percent of GDP)1; v)  Endemic corruption (https://apo-opa.co/4g2luaH) (Africa loses annually in IFFs about US$89 billion) (https://apo-opa.co/3MmfvzX); and vi) Inefficient and expensive tax collection systems. 

On the last point in particular, data suggest that between 2000 and 2021 African countries collected only 24 percent of the VAT revenues annually – the lowest rate in the world – that they could otherwise have collected with full compliance and without tax exemptions. The AEO (2024) report has therefore estimated that by just increasing the VAT efficiency ratio to the level currently achieved by high-performing developing countries in other regions—those with a VAT efficiency rate of at least 70 percent—African countries could raise their current median VAT revenues (as a share of GDP) by as much as 7.9 percentage points, equivalent to a median value of about US$1.9 billion. In aggregate terms, improving VAT efficiency ratio could translate into additional VAT revenues of US$171 billion (or 42.5 percent of Africa’s US$402.2 billion financing gap).    

There is a long way to go to make DRM work for Africa’s structural transformation. To move fast, policy priority should be given to improving the transparency of the tax system, widen the tax base, enhance enforcement, mitigate compliance risks, and ultimately stimulate voluntary compliance by strengthening the social contract via enhanced provision of public goods and services to address widespread implicit taxation and increase compliance; increasing non-tax revenues such as property income, royalties, fines, penalties, forfeits, and business permits; enhance the formalization of the informal economy and, digitalization of tax collection systems to curb corruption, thereby enhance revenue collection.  

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

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ST Telemedia Global Data Centres Delivers on Responsible Scaling, Surpassing 2028 Carbon Intensity Target Three Years Early with Renewables at 83.2%

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5 hours ago

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July 21, 2026

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ST Telemedia

SINGAPORE – Media OutReach Newswire – 21 July 2026 – ST Telemedia Global Data Centres (STT GDC) today published its 2025 Environmental, Social and Governance (ESG) Report, setting out how the Singapore-headquartered global data centre provider is meeting accelerating demand, including from AI-driven workloads, through infrastructure that is more resilient, efficient and sustainable by design. The report highlights 83.2% renewable energy usage, a 70.5% reduction in carbon intensity from its 2021 baseline, 41.2% improvement in water usage effectiveness (WUE) from the 2020 baseline, and continued progress in embedding ESG considerations into how STT GDC designs, builds, finances and operates its data centres at scale.

The report positions responsible growth as a core business discipline for STT GDC, linking sustainability performance to long-term asset resilience, customer trust and operational excellence. Across its global platform, STT GDC is integrating ESG considerations into capital allocation, site selection, design, operations, risk management and workforce development to support reliable digital infrastructure at scale.

Bruno Lopez, President and Group Chief Executive Officer, ST Telemedia Global Data Centres, says, “The next phase of digital growth will be defined by how the industry resolves the tension between rising demand — particularly from AI — and the finite nature of energy, water and land. Responsible scaling is therefore not a sustainability commitment alone; it is a commercial and operational imperative that shapes where we build, how we design, and how we run our data centre platform. Our 2025 progress reflects disciplined execution of a strategy we have been advancing for years, delivering meaningful improvements in energy efficiency, emissions and resource management across our global platform. As we scale further, we will continue to advance with the same discipline — in the infrastructure we build, the governance that underpins it, and the positive impact we create for the communities and ecosystems we are part of.”

Scaling efficient, lower-carbon infrastructure

STT GDC continued to advance its decarbonisation strategy in 2025, delivering measurable reductions in emissions and improvements in resource efficiency while scaling its global data centre platform to meet rising digital demand. The Group’s approach focuses on embedding sustainability into the design and operation of its infrastructure, enabling long-term performance while managing growing energy and resource requirements. Key environmental achievements include:

Furthered renewable energy adoption, with 83.2% of electricity consumption sourced from renewables, supporting STT GDC’s transition towards carbon-neutral operations by 2030.
Reduced carbon intensity by 70.5% from the 2021 baseline, surpassing STT GDC’s 2028 target three years ahead of schedule, alongside a 15.2% year-on-year reduction in absolute Scope 1 and 2 emissions
Improved energy efficiency across operations, achieving an average Power Usage Effectiveness (PUE) of 1.44, a 13.0% improvement from the 2020 baseline, reflecting continued optimisation of data centre design and operations.
Enhanced water stewardship, with Water Usage Effectiveness (WUE) improving by 41.2% from the 2020 baseline, supported by a balanced approach to managing energy and water use in cooling systems.
Continued progress in sustainable infrastructure, with 48% of its data centres achieving green building certification, reflecting the integration of sustainability considerations across the lifecycle of its facilities.
Building a safe and future-ready workforce

As STT GDC continues to scale its global data centre platform, investing in people, safety and workforce capabilities remains central to delivering reliable and sustainable operations. In 2025, the Group maintained a strong focus on safeguarding its workforce, strengthening organisational capability and supporting the development of future-ready talent to meet the growing demands of the digital economy. Key social achievements include:

Maintained strong safety performance, with zero work-related fatalities and a Total Recordable Incident Rate (TRIR) of 0.1 across more than 41 million hours worked, reflecting robust health and safety management across construction and operations.
Strengthened workforce capability, with an average of 18 training hours per employee, supporting the development of technical, operational and leadership skills across the organisation.
Advanced diversity and inclusion, with 21.7% women representation across the Group, reinforcing ongoing efforts to build a more inclusive and balanced workforce.
Expanded talent development initiatives, including the DC Power Up programme and partnerships with 10 Institutes of Higher Learning across our markets, helping to build a pipeline of industry-ready talent for the growing digital infrastructure sector.
Deepened community and workforce engagement, through skills development programmes and industry-academic partnerships that support long-term talent development and contribute to local economic growth.
Strengthening Governance and Resilience at Scale

Strong governance, disciplined risk management and robust operational controls underpin STT GDC’s ability to scale responsibly in an increasingly complex digital environment. In 2025, the Group continued to strengthen its enterprise-wide approach to governance, embedding ESG considerations into decision-making, risk management and day-to-day operations to support long-term resilience and performance. Key achievements include:

Strengthened governance and ethical business practices, with 100% of employees completing anti-corruption training, reinforcing STT GDC’s commitment to integrity and accountability across its global operations.
Enhanced enterprise-wide risk management, incorporating climate, cybersecurity and operational risks into planning and decision-making, ensuring infrastructure resilience as the Group scales.
Advanced cybersecurity and operational resilience, including strengthened governance, technical controls and preparedness through initiatives such as executive-level cyber exercises and risk assessments across key facilities.
Improved supply chain governance, embedding ESG criteria into procurement processes and reinforcing responsible sourcing practices across its global vendor network.
Strengthened organisational alignment and execution, through the inaugural Group ESG Summit, supporting capability building and consistent application of ESG priorities across markets.
These efforts come as data centre operators face growing expectations to deliver capacity while managing energy, water, climate and cybersecurity risks with greater transparency and accountability.

STT GDC’s 2025 ESG Report reflects a continued evolution in how the Group approaches sustainable growth, with a stronger focus on disciplined execution, operational resilience and long-term performance as it scales its global platform. As digital infrastructure becomes increasingly critical to economies and societies, STT GDC will continue to embed sustainability, risk management and governance into how it designs, builds and operates its data centres.

By working closely with customers, partners and communities, the Group aims to deliver infrastructure that is not only efficient and resilient, but also capable of supporting the next phase of digital growth, including AI-driven workloads, in a responsible and sustainable way.

The full 2025 ESG Report is available at https://www.sttelemediagdc.com/about-us/our-esg-progress

About ST Telemedia Global Data Centres
ST Telemedia Global Data Centres (STT GDC) is one of the fastest-growing data centre providers with a global platform serving as a cornerstone of the digital ecosystem that helps the world to connect. Powering a sustainable digital future, STT GDC operates across Singapore, the UK, Germany, Italy, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam, providing businesses an exceptional foundation that is built for their growth anywhere. For more information, visit https://www.sttelemediagdc.com/

 

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Energy

London Showcase to Bring Venezuela’s Energy Opportunities to Global Investors Ahead of 2026 Summit

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6 hours ago

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July 21, 2026

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A high-level London industry showcase on July 30 will bring together UK and European investors, financiers and energy leaders to explore emerging opportunities across Venezuela’s oil, gas and power sectors ahead of Venezuela Energy Week 2026

LONDON, United Kingdom, July 17, 2026/APO Group/ –As Venezuela accelerates efforts to revitalize its energy sector and attract international investment, Venezuela Energy Week 2026 will host an exclusive Industry Showcase in London on July 30, bringing together investors, financial institutions, international oil companies, commodity traders and energy executives for market intelligence, networking and partnership development ahead of the flagship conference taking place this October in Caracas.

 

Designed as a strategic preview of the main event, the London showcase will provide UK and European stakeholders with first-hand insight into Venezuela’s evolving investment landscape while creating opportunities for commercial dialogue with industry leaders, potential partners and key decision-makers.

Home to the world’s largest proven oil reserves and significant natural gas resources, Venezuela is entering a new phase of energy development focused on increasing production, expanding gas commercialization and modernizing critical infrastructure. Ongoing reforms and renewed international engagement are creating opportunities for companies able to provide capital, technology and technical expertise.

The timing is particularly significant as several UK and European energy companies continue to strengthen their presence in Venezuela. UK-based majors Shell and BP are advancing key natural gas developments, with Shell preparing for 2027 drilling at the Dragon offshore gas project and BP signing agreements in April to develop the Cocuina-Manakin offshore gas field, marking its return to the Venezuelan market. Spain’s Repsol recently announced plans to increase production from its Venezuelan assets, while Italy’s Eni is relaunching a heavy crude project in the Orinoco Belt. France’s Maurel & Prom, meanwhile, remains a key partner in strategic assets such as the Urdaneta Oeste field. On the trading and commercialization front, Geneva-headquartered energy trader Vitol has renewed its engagement with Venezuelan crude exports, reflecting broader international interest in reconnecting the country’s resources with global markets.

Against this backdrop, the London Industry Showcase will highlight Venezuela’s re-emerging investment potential while creating a platform for strategic networking and direct engagement with government leaders, national energy companies, regulators and private sector partners.

The event is expected to attract representatives from investment funds, export credit agencies, commercial banks, private equity firms, commodity traders, engineering companies, technology providers and UK-based independent energy companies exploring opportunities across Venezuela’s energy value chain.

The showcase will also provide an exclusive preview of Venezuela Energy Week 2026, including ministerial dialogues, executive forums, technical conferences and dedicated business-to-business networking sessions designed to connect international investors with the decision-makers shaping the country’s energy future.

Taking place on October 26–29, 2026 in Caracas, Venezuela Energy Week serves as the country’s premier platform for advancing investment across the oil, gas and power sectors. By bringing the conversation to London – one of the world’s leading financial and energy centers – the Industry Showcase builds momentum ahead of the flagship event while strengthening ties between international capital and one of the world’s most resource-rich energy markets.

To participate in the London Industry Showcase on July 30 or secure your place at Venezuela Energy Week 2026 in Caracas this October, contact info@venezuelaenergyweek.com to learn more about delegate, sponsorship and partnership opportunities.

Supporting Venezuela’s Earthquake Recovery

 

Our thoughts are with the people and communities affected by the recent earthquakes in Venezuela. As the country begins the long process of recovery, we encourage members of the global energy community to support relief and reconstruction efforts through the CAF Recovery and Reconstruction Fund for Venezuela, which channels contributions from individuals, companies and organizations to emergency assistance, essential services and long-term rebuilding efforts.

 

To learn more or make a contribution, please visit the CAF Recovery and Reconstruction Fund for Venezuela (https://apo-opa.co/3RKKqfz).

Distributed by APO Group on behalf of Energy Capital & Power.

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Events

October 2-4, 2026, Announced as New Date for the Inaugural Alamein Africa Forum

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6 hours ago

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July 21, 2026

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The Forum which was earlier scheduled to hold in June 2026 was postponed following concerns about the evolving public health situation on the continent at the time

CAIRO, Egypt, July 17, 2026/APO Group/ —

The Government of Egypt and the African Union Commission alongside other key stakeholders and partners are pleased to announce new dates for the inaugural Alamein Africa Forum (www.AlameinForum.com).

 

The Forum which was earlier scheduled to hold in June 2026 was postponed following concerns about the evolving public health situation on the continent at the time.

The inaugural Alamein Africa Forum will now be held between October 2-4, 2026, in Alamein, Egypt following consultations between the relevant stakeholders. It will be held in parallel with the African Union mid-year Summit which will take place in Alamein on 4 October 2026.

Please accept our sincere appreciation for your understanding, flexibility and continued support.

The Forum presents a unique opportunity to engage key policy makers, including African Heads of State and Government, as well as senior leaders from finance, industry and institutional investors to advance Africa’s private sector agenda.

Additional information regarding accommodation and logistics as well as the Forum programme will be made available on the Forum website as soon as next week.

Distributed by APO Group on behalf of Alamein Africa Forum.

 

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