The African Tax Administration Forum (ATAF) has launched a new guide to help African countries strengthen the taxation of high-net-worth individuals and improve revenue generation for development.
In a statement, ATAF Executive Secretary, Mary Baine, said the publication titled “Guide to Implementing an Effective High-Net-Worth Individuals (HNWI) Taxation Regime in Africa” is designed to support tax authorities in ensuring that wealthy individuals contribute fairly to national revenues.
“Effective taxation of High-Net-Worth Individuals can assist African countries to broaden their tax base, improve equity within tax systems and mobilise the domestic resources needed to finance development priorities,” Baine said.
The organisation noted that tax collection across many African countries remains low, particularly among individuals, with only about five per cent of employed adults paying personal income tax—far below the roughly 50 per cent recorded in wealthier nations.
ATAF added that over 90 per cent of personal income tax revenue in many African countries comes from salaried workers, leaving a significant portion of wealth outside the tax system.
Baine said that while governments globally are increasingly targeting high-income earners to improve tax fairness, Africa still faces challenges in effectively capturing revenue from wealthy individuals.
“In Africa, the situation is different. Wealthy individuals still contribute relatively little to total tax revenues. Improving how we tax high-net-worth individuals could make a real difference to national development,” she said.
The guide is based on a study conducted in nine countries, including Kenya, South Africa, Uganda and Zambia, among others. It highlights gaps in existing tax policies and administrative systems while offering practical recommendations such as clearer definitions of high-net-worth individuals and improved compliance monitoring.
According to ATAF, the guide provides actionable tools to help governments expand their tax base and mobilise more domestic resources to fund critical development projects across the continent.
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