Rethinking Tax Incentives in the Mining Sector in Africa

The report argues that mining tax incentives in Africa are often poorly designed and overly generous, resulting in significant revenue losses. It challenges the assumption that such incentives are the primary drivers of investment, suggesting that deposit quality and political stability are more critical. The authors recommend that governments eliminate harmful incentives, implement time-bound and transparent frameworks backed by cost-benefit analyses, and enhance regional coordination to prevent tax competition. Furthermore, it suggests aligning tax policies with the Africa Mining Vision to promote local industrial development and value addition.

• Mining tax incentives in Africa are frequently poorly designed and excessively generous, which results in the loss of government revenue.
• The belief that tax incentives are essential for attracting mining investment is questioned, as location-specific factors like infrastructure, political stability, and the quality of deposits may be more influential.
• To improve governance and protect revenues, incentives should be targeted, transparent, time-bound, and supported by regular cost-benefit analyses.

APA

Ibrahim,, V. T. (2025). Rethinking Tax Incentives in the Mining Sector in Africa. International Institute for Sustainable Development. https://www.iisd.org/publications/report/rethinking-tax-incentives-mining-africa

Chicago

Ibrahim,, Viola Tarus,Gamal. Rethinking Tax Incentives in the Mining Sector in Africa. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/rethinking-tax-incentives-mining-africa.

Wikipedia

{{cite report |last1=Ibrahim, |first1=Viola Tarus,Gamal |title=Rethinking Tax Incentives in the Mining Sector in Africa |publisher=International Institute for Sustainable Development |date=12 June 2025 |url=https://www.iisd.org/publications/report/rethinking-tax-incentives-mining-africa |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ibrahim2025rethinking, author = {Ibrahim,, Viola Tarus,Gamal}, title = {{Rethinking Tax Incentives in the Mining Sector in Africa}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = jun, url = {https://www.iisd.org/publications/report/rethinking-tax-incentives-mining-africa}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }