WHAT: The African Union Commission and NEPAD (New Partnership for Africa's Development) are meeting in Addis Ababa, Ethiopia, next week to discuss how increasing tax revenue in Africa can reduce countries’ reliance on aid. This event will take place on 24th July and ActionAid is organising a high level panel on how aid can be used to mobilise domestic resources in Africa.
ActionAid argues that while aid dependence can be reduced by increasing the amount of tax collected, changes to international tax rules are urgently needed.
Henry Malumo, ActionAid’s Africa Advocacy Coordinator, says: “Governments have made good progress on increasing tax revenue to end aid dependency but Africans must make sure their governments use the money to deliver real reductions in poverty.
“By stopping companies dodging tax, governments can deliver the money for public services such as schools and hospitals that their people need.”
New research commissioned by ActionAid shows that developing countries are already rapidly reducing their dependence on external aid. Aid financing in least developed countries and low income countries has fallen from more than a half to just a third of government spending since 2002. Increased revenue mobilisation has been a key factor, and in many cases has involved more progressive forms of taxation such as taxes on corporations.
ActionAid’s international campaign, Tax Power, calls for an end to harmful tax breaks, an end to corporate tax dodging and an increase in the transparency of governments and big corporations. For more information and materials, see: http://www.actionaid.org/tax-power
WHO: Henry Malumo, Africa Advocacy Coordinator, English speaker
WHEN: From Tuesday July 23rd until Friday July 26th
WHERE: In person or on the phone from Addis Ababa