As foreign aid declines and debt-servicing costs consume a growing share of government revenue, three African countries are increasingly turning to tax data to strengthen policymaking, collect more taxes, and fund development from within. South Africa, Uganda, and Zambia have each established secure research facilities, where analysts examine anonymized tax filings to identify inefficiencies and inform decisions. In South Africa, the research informed corporate tax reforms and helped shape employment support measures during the COVID-19 pandemic. Uganda used tax data to identify gaps in revenue collection and evaluate costly tax incentives. Zambia leveraged similar analysis to measure tax compliance gaps, improve audit strategies, and refine VAT administration. Supporters argue that these data-driven approaches allow governments to better understand their economies and make more effective fiscal decisions.
The Conversation
