Rethinking Tax Incentives in the Mining Sector in Africa

This report by the International Institute for Sustainable Development analyzes the use of mining tax incentives across Africa, arguing that they are often poorly designed and lead to revenue losses. It provides policy recommendations for reforming incentive frameworks to better align with sustainable growth and the Africa Mining Vision.

• Mining tax incentives in Africa are frequently overly generous and poorly designed, which results in the loss of revenue. The report challenges the premise that these incentives are essential for attracting investment, suggesting that factors like political stability, infrastructure, and deposit quality may be more significant.
• To improve governance and protect revenues, countries should eliminate harmful incentives and ensure that any remaining incentives are transparent, targeted, time-bound, and based on a demonstrable commercial need. Governments are advised to implement regular cost-benefit analyses and enhance regional coordination to prevent harmful tax competition.
• Tax policies should be strategically reviewed to align with the Africa Mining Vision, with the goal of promoting local industrial development, value addition, and sustainable growth to help achieve the Sustainable Development Goals.

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} }