BY COBHAM NSA – The West African Tax Administration Forum (WATAF) is pushing for immediate and comprehensive digitalization of Value Added Tax (VAT) systems as part of measures by member-nations to combat rampant revenue leakages in their financial system.
According to the Forum, current inefficiencies within the tax systems present a major bottleneck to domestic resource mobilization and regional economic development.
Stakeholders, including tax administrators, policymakers, and development partners made the call during a high-level regional forum held on 21 April 2026 in Abidjan and organized by the African Development Bank (AfDB).
The Forum was put together to examine reforms and best practices in VAT administration across the continent.
In his intervention during a high-level panel discussion on “VAT Digitalization: Pathways, Challenges and Opportunities,” the Executive Secretary of WATAF, Mr. Jules Tapsoba, said digital transformation of VAT administration is now a strategic imperative for improving compliance, reducing fraud, and enhancing efficiency in tax systems across West Africa.
Tapsoba said, “Digitalization is the single most transformative lever for improving VAT performance across West Africa. Without it, we will continue to face leakages, inefficiencies, and limited compliance,” adding that VAT remains one of the most significant sources of domestic revenue in many West African countries, yet structural challenges continue to constrain its full potential.
A statement signed by the Communication and IT Manager of WATAF, Danicius Kaihenneh Sengbeh quoted Tapsoba as saying that these challenges include a large informal sector, weak tax culture, limited digital infrastructure, and insufficient coordination between customs and domestic tax administrations.
He explained that all factors have contributed to revenue leakages, delays in VAT credit reimbursements, and reduced business liquidity across sub-saharan Africa.
Furthermore, Tapsoba noted that ongoing reforms across member states are already demonstrating the impact of technology-driven tax systems, including the expansion of online taxpayer registration, the introduction of electronic invoicing, and the automation of tax declaration and payment processes.
However, he said there is an urgent need to scale up these reforms in a more harmonized and coordinated manner across the region.
Mr. Tapsoba further called on member states to align national VAT frameworks with the ECOWAS Directive on VAT harmonization adopted in July 2023, with a domestication deadline of January 2027.
He emphasized that harmonizing and digitalizing is essential for a common market, fair competition, and regional integration, adding that beyond digital transformation, serious steps must be taken to improve VAT performance, including faster refunds, stricter audits, better customs valuation, and joint customs-tax teams as well as stronger domestic tax administrations.
He harped on building robust data systems, strengthening tax administration, promoting greater public awareness and compliance for evidence-based policy.
Also speaking at the Forum, Chief Governance Officer at the African Development Bank (AfDB), Ms. Eline Okudzeto, cited lessons from East Africa, noting that while progress has been made, challenges remain in compliance, coordination, and system integration.
She emphasized the importance of cross-border VAT cooperation and reaffirmed AfDB’s role in supporting dialogue, technical capacity building, and country-level reform programmes.
Among prominent participants at the Forum were keynote Speaker, Mr. Emeka Nwankwo, Head of Member Services at the African Tax Administration Forum (ATAF); Mr. Abou Ouattara Sié, Director General of Taxes of Côte d’Ivoire; and Mr. Darlingston Yahkor Talery, Head of the Domestic Tax Unit at the Economic Community of West African States (ECOWAS).
They all added their voices to amplify the critical role of VAT in domestic revenue mobilization, while highlighting ongoing challenges and future prospects for strengthening VAT systems across the region.
Meanwhile, WATAF assured that it would continue to support member states’ transition from border taxes to domestic taxation through technical assistance and capacity building.
Importantly, the Forum urged governments and partners to focus on implementing policies instead of just mouthing commitment, insisting that timely action is critical for the region’s fiscal transition objectives.
