African Tax Administrators Move to Effectively Tax the Wealthy
By Patience Ikpeme
African tax administrators are taking concerted steps to ensure the effective taxation of High-Net-Worth Individuals (HNWIs) across the continent.
This decision emerged from a continental workshop held in Entebbe, Uganda, from October 21-23, co-organised by the African Tax Administration Forum (ATAF) and the International Centre for Tax and Development (ICTD).
The administrators agreed on the critical need for collective action to broaden the tax base and strengthen domestic revenue mobilisation (DRM) to fund national development.
In her address, ATAF Executive Secretary Ms. Mary Baine encouraged administrations to approach the HNWI agenda with confidence and a solutions-oriented mindset. She pointed out that while some African nations appear successful in Personal Income Tax (PIT) collection, the source of that revenue is narrowly focused.
Ms. Mary Baine noted the power of partnership, stating: “According to the ATO Report, South Africa, Eswatini, and the Kingdom of Lesotho lead Africa in Personal Income Tax collection, yet most of this revenue still comes from Pay-As-You-Earn (PAYE) taxpayers.”
She identified key challenges facing African tax administrations, including under-resourcing, limited integration of third-party data, and insufficient use of administrative data for decision-making. ATAF is prepared to support members in achieving their DRM objectives in line with the Seville Declaration.
In his keynote address, Mr. Sam Shivute, Commissioner of the Namibia Revenue Agency (NamRA) and ATAF’s council Vice Chair, stressed the importance of upholding the Seville principles. He spoke of the pivotal role of leadership in building credible HNWI compliance programmes that are fair, effective, and trusted.
Mr. Sam Shivute, Commissioner of the Namibia Revenue Agency (NamRA) and ATAF Vice Chair, declared: “In line with the Compromiso de Sevilla of 2025, tax administrations must ensure the effective taxation of High-Net-Worth Individuals in their respective jurisdictions.”
A high-level panel on “The Strategic and Political Dynamics of Taxing HNWIs” featured Mr. Shivute, Ms. Baine, and Mr. Henry Ngutwa (Deputy Commissioner General, Malawi Revenue Authority).
The panellists shared practical insights on strengthening compliance frameworks, improving data access, enhancing inter-institutional cooperation, and navigating political dynamics to ensure the equitable and efficient taxation of the continent’s wealthiest individuals.
During the workshop, participating countries exchanged experiences on profiling HNWIs, identified priority datasets and tools, and reviewed administrative and legal enablers for enforcement.
The workshop concluded with a set of actionable recommendations. These will inform an updated ATAF Guide on Taxing High-Net-Worth Individuals and shape future research and technical assistance to support African tax administrations in implementing robust HNWI compliance strategies.
