Africa may be sitting on one of the world’s largest untapped financial resources, and it is not buried underground.
The African Development Bank (AfDB) says the continent could unlock more than $469 billion in additional revenue every year without raising a single tax rate, a sum that exceeds Africa’s estimated annual development financing gap and could significantly reduce dependence on foreign borrowing and aid.
The figure comes at a critical moment.
African governments are facing mounting fiscal pressure from rising debt repayments, weakening aid flows and a more difficult global financing environment.
According to S&P Global Ratings, the continent’s external debt repayments are expected to exceed $90 billion this year, while development institutions estimate Africa’s annual financing gap at around $400 billion.
