Trade Integration, European Union, Socio-Economic Growth, Tax Administration, Value Added Tax, Tax Harmonization, Foreign Direct Investment, Tax Treaties, Unitary Taxation, Multi-National Corporations, MNC, African Continental Free Trade Area Agreement, AfCFTA, Tax Reforms
The African Continental Free Trade Area Agreement is aimed at transforming the economic landscape of the African continent. The agreement contains lofty objectives set up to enhance trade integration and promote the free flow of capital and investments. The agreement follows the EU model on market integration and signatories have committed to take measures to reduce the cost of doing business and create a conducive environment for private sector development in Africa. The agreement is not just aimed at eliminating barriers to trade, but is also focused on ensuring sustainable, inclusive social and economic development and structural transformation of the State Parties. The focus on the extensive benefits that trade integration might afford African countries presents an opportunity to review the underlying structural factors that erode the tax base of African countries and limit the potential of tax for socio-economic growth. This is important because trade liberalization stimulates trade and investment. Therefore, it is necessary to undertake effective structural reform to drive social and economic development in the continent.
Oladiwura Eyitayo-Oyesode, Socio-Economic Development in Africa: Tax Reform as a Tool for Fostering the Objectives of the AFCFTA (12 March 2019), online (blog): Afronomicslaw < http://www.afronomicslaw.org/2019/03/12/socio-economic-development-in-africa-tax-reform-as-a-tool-for-fostering-the-objectives-of-the-afcfta/ > [https://perma.cc/CM58-RNE7].