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

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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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Congo Is Turning Reserves into Bankable Projects – and the Investment Window Is Opening

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Etu Energias

Eni-led LNG expansion and ongoing deepwater investment are pushing the Republic of Congo’s energy sector toward more bankable projects ahead of the Congo Energy & Investment Forum 2027

BRAZZAVILLE, Congo (Republic of the), June 23, 2026/APO Group/ –With LNG exports set to triple to 3 mtpa, upstream oil production targeting 500,000 bpd and a renewed push on local content, the Republic of Congo is positioning itself as one of Central Africa’s most investable hydrocarbon markets. Under the leadership of the newly-appointed Minister of Hydrocarbons, Stev Simplice Onanga, the country is prioritizing industry growth by balancing local content with reserve replacement and project advancement.

 

What sets Congo apart is not the scale of its reserves, but the pace at which those reserves are being turned into commercially viable projects. From Eni’s LNG expansion and TotalEnergies’ deepwater developments to brownfield optimization by Trident Energy and output growth at Ammat Global Resources, capital is flowing into projects with clearer monetization pathways and nearer-term returns.

Ahead of the Congo Energy & Investment Forum (CEIF) 2027 – the country’s leading platform for energy investment and partnerships – the story is shifting away from frontier potential toward bankable projects already under development.

Policy Reform Is De-Risking Investment

Congo’s investment case is being reshaped by the alignment of resource base, regulatory reform and project delivery. Established oil production, expanding LNG capacity and fiscal adjustments are gradually reducing above-ground risk.

Recent reforms led by the Ministry of Hydrocarbons and Société Nationale des Pétroles du Congo have added structure to the sector. The Gas Code, introduced in October 2025, formalizes fiscal terms for gas commercialization, while the Gas Master Plan prioritizes flaring reduction and gas-to-power deployment, targeting 1,500 MW by 2030.

A new upstream licensing round is also under consideration, aimed at attracting fresh capital into both mature and frontier acreage. Together, these measures are improving visibility across upstream, midstream and downstream segments, with recent project activity reinforcing the shift.

The Projects Driving the Next Cycle

Deepwater oil remains central to Congo’s production outlook, with operators progressing both new developments and brownfield optimization. TotalEnergies is advancing work at the Moho licence following the April 2026 Moho G discovery, backed by a $500–$600 million infill drilling program targeting about 40,000 bpd in incremental output.

Local independent Ammat Global Resources is targeting 70% production growth from its Loango and Zatchi fields, where reactivated wells and upgraded platforms have already lifted output by 75%. Perenco continues steady gains, adding roughly 6,000 bpd through its 2025–2026 drilling program.

Trident Energy, after acquiring an 85% working interest in the Nkossa and Nsoko II assets in 2025, is focused on extending field life through subsea optimization and redevelopment work.

While oil continues to anchor revenues, gas is rapidly emerging as Congo’s fastest-growing segment. Eni’s Congo LNG project delivered its first cargo from Phase 2 in February 2026, following the startup of the Nguya FLNG unit in December 2025. Together with Tango FLNG, capacity has risen from 0.6 mtpa to 3 mtpa. Trident Energy has also proposed an FLNG project aimed at adding further capacity across the country’s gas market. The project is expected to operate as shared infrastructure, allowing multiple operators to process gas from their respective fields. This creates an outlet for associated gas that might otherwise be stranded, supporting the country’s broader diversification goals.

Local Content Is Reshaping Investment Terms

Beyond upstream policy, Minister Onanga has positioned local content as a central pillar of Congo’s investment framework, and a key determinant of how capital is structured and deployed.

Decrees 2019-342, 343, 344 and 345 set requirements around subcontracting, workforce localization and training commitments, with the effect being a gradual shift in how projects are structured and how partnerships are formed. Operators are increasingly assessed not only on technical delivery but on in-country value creation, including partnerships with local firms and skills development. Logistics, maintenance and other service areas are increasingly channeled through domestic providers.

At CEIF 2027 – taking place June 1–3 in Brazzaville – attention will shift to what is moving forward and to the investors positioned to take part in that pipeline. Congo’s energy sector is no longer defined by potential alone: projects are moving, capital is being committed and policy is starting to catch up with activity on the ground.

As the Republic of Congo moves from reserves to revenue, the signal to investors is clear: this is already unfolding, not a future opportunity.

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

 

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Afreximbank secures double honours at the 2026 International Association of Business Communicators (IABC) Gold Quill Awards for excellence in strategic communications

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Afreximbank

The Award of Excellence for IATF2025 recognises the successful communications and stakeholder engagement programme delivered around the fourth edition of the Intra-African Trade Fair, Africa’s premier trade and investment event

CAIRO, Egypt, June 23, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has been recognised with two prestigious honours at the 2026 International Association of Business Communicators (IABC) Gold Quill Awards, one of the world’s most prestigious awards programmes for strategic communications.

 

The Bank received an Award of Excellence in Special and Experiential Events category for the Intra-African Trade Fair 2025 (IATF2025) held in Algiers, Algeria and an Award of Merit in the Social Media category for its Afreximbank Social Media Campaigns, reaffirming Afreximbank’s commitment to delivering impactful communications that advance its mandate of promoting trade, investment and industrialisation across Africa and the Caribbean.

We are delighted to receive these two awards, which attest to the expertise, creativity and efficiency of Afreximbank’s communication

The Award of Excellence for IATF2025 recognises the successful communications and stakeholder engagement programme delivered around the fourth edition of the Intra-African Trade Fair, Africa’s premier trade and investment event. IATF2025 brought together governments, businesses, investors, buyers, sellers and entrepreneurs from across Africa and beyond, creating a platform for trade and investment opportunities while advancing the objectives of the African Continental Free Trade Area (AfCFTA). The communications campaign played a pivotal role in driving global awareness, stakeholder participation, media visibility and engagement before, during and after the event, while showcasing the scale, ambition and dynamism of African enterprise and reinforcing a positive narrative about Africa’s capacity to trade, industrialise and compete on the global stage. Over 120,000 delegates attended IATF2025 in person and virtually, with deals worth over US$50 billion recorded.

The Award of Merit for Afreximbank Social Media Campaigns recognises the Bank’s strategic use of digital platforms to engage stakeholders, amplify its developmental impact and elevate conversations around trade, industrialisation, economic integration and investment opportunities across Africa and the Caribbean. Through a combination of compelling storytelling, thought leadership content, executive advocacy, multimedia production and real-time event coverage, Afreximbank’s social media platforms have continued to expand their reach and influence among policymakers, businesses, investors, development partners and the wider public. Among these platforms is the Afreximbank TV, a digital TV channel that is wholly owned and managed by Afreximbank, whose fifth edition was celebrated with dedicated coverage of IATF2025, providing live coverage of the activities to both pan African and global audiences.

Anne Ezeh, Director & Global Head, Communications and Events at Afreximbank commented: “We are delighted to receive these two awards, which attest to the expertise, creativity and efficiency of Afreximbank’s communications. As a pan African multilateral financial institution, we see storytelling as a powerful tool for advancing our mission — ensuring our initiatives, events, programmes and key announcements not only inform, but also inspire confidence, deepen engagement and amplify Africa’s transformation. These awards reinforce our resolve to continue delivering world-class communications that elevate African voices and projects a bold and authoritative narrative of the continent.”

Ms. Ezeh added that through innovative storytelling, digital engagement and integrated campaigns, the Bank will continue to amplify the impact of its programmes and partnerships  to project a more authentic narrative of Africa, one defined by opportunity, innovation, resilience and growing influence in the global economy.

For more than five decades, the IABC Gold Quill Awards have recognised excellence in strategic communications globally, celebrating programmes and campaigns that demonstrate measurable impact, innovation, creativity and outstanding execution. Widely regarded as the pinnacle of achievement in the communications profession, the awards are judged through a rigorous and independent evaluation process conducted by experienced communication leaders from around the world.

Distributed by APO Group on behalf of Afreximbank.

 

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Islamic Development Bank (IsDB) Institute Unveils 2025 Annual Report During Group Annual Meetings in Baku

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IsDBI

In 2025, IsDBI significantly expanded its footprint in Islamic finance transformation, approving 25 new technical assistance projects valued at US$4.14 million and completing 19 projects worth US$3 million

The Islamic Development Bank Institute (IsDBI) (https://IsDBInstitute.org) has released its 2025 Annual Report during the 2026 IsDB Group Annual Meetings held in Baku, Azerbaijan, showcasing a year of expanded impact in Islamic finance transformation, innovative solutions, and capacity development.

 

The report highlights how IsDBI strengthened its role as a global knowledge leader by advancing innovative solutions and scaling support to Member Countries through knowledge-based interventions, Islamic finance grants, and strategic partnerships.

In 2025, IsDBI significantly expanded its footprint in Islamic finance transformation, approving 25 new technical assistance projects valued at US$4.14 million and completing 19 projects worth US$3 million, supporting countries in strengthening regulatory frameworks and promoting inclusive financial systems.

Since 2013, the Institute’s interventions in this regard have reached over US$27.57 million across 181 projects benefiting more than 34 countries, underlining its sustained contribution to development outcomes across the Islamic world.

I am pleased to note that the Institute has continued to strengthen its unique role in the global development ecosystem

The Annual Report highlights major progress in IsDBI’s three flagship transformative projects, namely Awqāf Free Zones, Digital Postal Islamic Financial Services, and Smart Countertrade System, which have all advanced to pilot-ready stages. These initiatives aim to address global challenges such as financial inclusion, food and energy security, and trade resilience.

Furthermore, the Institute accelerated its focus on digital innovation in Islamic finance, enhancing its Islamic Finance Artificial Intelligence Assistant (IFAA) and hosting its first AI Hackathon on Islamic Finance, engaging more than 40 teams in developing cutting-edge solutions aligned with industry standards.

Human capital development in Islamic finance also remained a cornerstone of IsDBI’s work in 2025, with the delivery of over 20 training programs reaching around 500 professionals across Member Countries. A key achievement in this area was the Entrepreneurial Mindset Development Program, a flagship initiative equipping emerging leaders from 20 countries with innovation-driven and values-based entrepreneurship skills. The program was designed and implemented in collaboration with Prince Mohammed Bin Salman College of Business and Entrepreneurship, Saudi Arabia.

The Institute also strengthened its thought leadership through flagship publications, global partnerships, and digital engagement, reinforcing its position as a leading voice in Islamic economics and finance.

Commenting on the issuance of the Annual Report, Dr. Sami Al-Suwailem, Acting Director General of IsDBI, said: “I am pleased to note that the Institute has continued to strengthen its unique role in the global development ecosystem by bridging knowledge creation, building human capital, and designing innovative solutions to address economic challenges.”

The 2025 Annual Report is accessible on IsDBI website here (https://isdbinstitute.org/product/isdbi-annual-report-2025/).

Distributed by APO Group on behalf of Islamic Development Bank Institute (IsDBI).

 

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