The African Development Bank Group has signed a $5.52 million grant agreement with the West African Tax Administration Forum (WATAF) to strengthen tax systems across six West African nations, marking a significant push toward greater fiscal self-sufficiency in the region.
The funds will launch the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), targeting Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone. Financed through the African Development Fund’s Transition Support Facility — the Bank Group’s concessional window — the project will run through July 2030.
The agreement was signed by Abdul B. Kamara, the Bank Group’s Director General for Nigeria, and Jules Tapsoba, WATAF’s Executive Secretary.
Tackling Leakages and Illicit Financial Flows
At its core, STACP-WA aims to modernize how member states collect, manage, and protect domestic revenues. The project will combine technical assistance, digital innovation, and policy dialogue to help countries align their tax systems with regional and international standards — while specifically targeting the loss of revenues through leakages and illicit financial flows.
Among its deliverables are a new electronic invoicing toolkit, transfer pricing assessment tools for the extractive sector, and training modules tied to the African Continental Free Trade Area (AfCFTA). A dedicated platform for young West African tax researchers will also be established.
Country-level support will address specific needs in areas such as VAT implementation, customs valuation, mining sector governance, and gender-responsive tax policy.
A Milestone for Regional Tax Cooperation
Speaking at the signing ceremony, Dr. Kamara described the initiative as essential to unlocking development financing across the subregion.
“Strengthening tax administration is essential for creating the fiscal space that will enable countries to finance their development priorities,” he said. “This partnership will deliver long-term benefits for regional stability and economic transformation in West Africa.”
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For WATAF, the agreement is historic. Tapsoba called it “the first time WATAF is implementing a region-wide tax administration project financed by the African Development Bank Group.”
“This partnership opens a new chapter for coordinated tax administration support in West Africa,” he added.
Implementation Structure
A dedicated Project Implementation Unit (PIU) within WATAF will lead delivery, overseen by a multi-stakeholder Project Steering Committee representing ECOWAS, WATAF leadership, and beneficiary countries. ECOWAS and the Nigeria Revenue Service (NRS) are expected to provide additional technical assistance throughout implementation.
The Economic Community of West African States (ECOWAS) is also expected to benefit through access to the project’s regional platforms and knowledge products.
