NAIROBI – The average ratio of tax revenue to GDP for sub-Saharan Africa stood at 15.1 percent in 2018, according to an official with the International Monetary Fund (IMF) on Thursday.
Abebe Selassie, director of African department at IMF, told a forum in Nairobi that sub-Saharan Africa should strive to ensure that their tax revenue hits 20 percent of gross domestic product (GDP).
The official urged sub-Saharan African countries to enhance domestic resource mobilization in order to achieve the Sustainable Development Goals (SDGs). "Revenue mobilization is key for securing the resources needed to achieve SDGs," Selassie said during the Seventh African Fiscal Forum.
Selassie said that in order for sub-Saharan Africa to meet the SDGs it will require stronger growth and more financing.
The IMF further expected South Africa’s economy to grow by 1.7 percent next year. The Washington-based lender said the outlook for emerging markets and developing economies reflected the continued headwinds from weaker capital flows following higher US policy rates and exchange rate depreciation.