Logan Wort, Executive Director of the African Tax Administration Forum (ATAF), delivered a compelling address at the 11th Pan-African Conference on Illicit Financial Flows and Taxation. The conference, held under the theme “Make Global Tax Governance Work for Africa,” focused on the pressing issue of illicit financial flows plaguing the African continent.
Mr Wort underscored the significance of the African Union’s presence in the G20, emphasizing both its potential opportunities and inherent risks. He cautioned that Africa must approach its G20 membership with careful consideration, as participation in these forums could potentially lock the continent into decisions that might not be in its best interest.
“I think, ladies and gentlemen, the African Union’s membership of the G20 must not be taken lightly, both in terms of its opportunity, but also in terms of its risk in my opinion. We do have the risk if we are part of the conversations to be locked into conversations and decisions that we can consequently no longer outside of that forum, re-examine and oppose when these are not to the benefit of our continent,” he remarked.
Highlighting the need for strategic preparation, Mr Wort stressed that African leaders engaging in G20 discussions must arm themselves with robust data, statistics, and analyses. This, he argued, is crucial for informed participation and for advocating positions that align with Africa’s priorities.
“And so we need to examine how we will arm our leaders that will participate in these forums with the necessary data, statistics and analysis that will prepare them and support them in their conversations,” he added.
Mr Wort further elaborated on the potential impact of the AU’s G20 membership, emphasizing the importance of providing Africa with a voice in forums where crucial global economic issues are deliberated.
Historically, Africa has often found itself on the receiving end of decisions rather than actively shaping them. Mr Wort argued that the absence of adequate representation has led to inefficiencies, delays, and uncertainties, especially in initiatives like the G20 common framework for debt treatment.
The Executive Director expressed concern that the exclusion of African voices from these discussions disproportionately empowers creditor nations, significantly impacting low-income countries on the continent.
Mr Wort’s address highlighted the urgent need for Africa to actively engage in global economic dialogues to ensure that decisions made at forums like the G20 address the specific requirements and challenges faced by African nations.
The African Union was on September 9, 2023, admitted into the G20 as the 21st member of the group.
Per recent data, illicit financial flows out of Africa are twice the financial aid and foreign investments received from developed countries and businesses, making Africa a net creditor to the world.
According to the Tax Justice Network Africa (TJNA) and the African Tax Administration Forum (ATAF), current tax laws deprive Africa of $3bn in revenue from the three (3) big tech firms alone which can be used in various sectors of African economies.
Currently, African leaders are in negotiations in New York with leaders of the world for the need to democratise the global tax infrastructure to benefit Africa, but there is however a pushback from Western leaders, as there are interests to maintain the status quo.
The Tax Justice Network Africa (TJNA) and the African Tax Administration Forum (ATAF) are therefore calling for the reform of the global tax system to the benefit of Africa.
PAC is an annual event convened by Tax Justice Network Africa (TJNA) in collaboration with its partners. The event facilitates alignment and collaboration among African civil society organisations (CSOs), pan-African Institutions and government agencies.
The 3-day meeting brings together over 100 stakeholders working on tax issues from Pan-African Organizations, tax administrations, ministries of Finance, civil society organisations, parliamentarians, and academia/researchers to explore ways in which African countries can take the lead on international conversations that are beginning to have direct implications on issues relating to domestic resource mobilisation and illicit financial flows.