|Approval Date||03 Nov 2022|
|Signature Date||07 Dec 2022|
|Planned Completion Date||31 Dec 2025|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The African Economic Outlook (AEO) warns that 1.8 million people across the continent could be pushed into extreme poverty in 2022, and this number could swell by an additional 2.1 million in 2023. At the global level, the International Monetary Fund (IMF) predicts that the world economy to grow by half a percentage point less in 2022 than previously expected (down from 4.9% to 4.4%). This is due to a number of factors including continued COVID 19 outbreaks and lockdowns, persistent inflation and reduced prospects in key global economies including China and the USA. This is the regional and global backdrop which informs the design of this investment operation which seeks to support African countries’ abilities to mobilize domestic resources and apply these resources judiciously to development outcomes including the aspirations in Agenda 2063 and the Sustainable Development Goals (SDGs). In line with the 2022 AEO, the operation also promotes climate resilience and considerations for developing low carbon economies through climate smart tax policies and budgeting. The project does this by supporting two key pan-African institutions, the Africa Tax Administration Forum (ATAF) and the Collaborative Africa Budget Reform Initiative (CABRI). It is designed successor to the Regional Institutional Support Project for Public Financial Governance (RISPG) Phase I which was approved in 2016 and closed successfully in September 2021 at 100% disbursement.
The proposed development objective is to enhance domestic resource mobilization, and public finance management and contribute to RMC efforts to build resilience for sustainable and inclusive growth and development. The specific objectives are a) Enhancing African tax systems through technical capacity building and provide a voice for African countries on regional and global platforms; b) improving capacities for public finance management (planning, budgeting and public debt management); and c) encouraging the mainstreaming gender and climate change in tax and PFM.
The direct project beneficiaries are the ATAF and CABRI. The grant is aimed at building capacities of African Tax Authorities as well as Ministry of Finance Officials. The ultimate beneficiaries are ADF RMCs, which have membership in these organizations and in which the Bank can program as further detailed out in the Technical Annexes. Ultimately the project will contribute to the development outcomes of the African continent and the realization of various commitments including Financing for Development, Agenda 2063 and the Sustainable Development Goals. This proposal has been informed by extensive consultations with key stakeholders. This is in the context of the implementation of Phase I, the preparation of the PCR and in terms of this proposal. Stakeholders including ATAF and CABRI officials, member countries and technical partners all shared their perspectives on the continent’s development challenges and policy priorities as well the design and implementation of the proposed operation.
African Development Fund
African Tax Administration Forum ATAF
|Last Update||26 Jan 2023|
|Name||CHANGE Evelynne Obonyo|