TAXATION AND STATE–SOCIETY RELATIONS IN SUB-SAHARAN AFRICA

The report examines taxation in Cameroon, Mozambique, and South Africa, analyzing how formal institutional designs and informal state-society relations affect revenue collection and development. It finds that while technical reforms (like VAT and semi-autonomous revenue authorities) have increased some revenues, deep-seated perceptions of taxation as a colonial tool of oppression, combined with widespread corruption and a lack of transparency, severely undermine tax morale and voluntary compliance across all three nations.

• The authors argue that the primary obstacle to a strong tax system in South Africa, Cameroon, and Mozambique is the nature of state–society fiscal relations, which currently fail to boost tax morale.
• In Mozambique, taxation is deeply associated with colonial oppression in the collective memory, leading to a long-term perception of taxes as a tool for exploitation.
• In Cameroon, the tax administration is not semi-autonomous but remains as departments within the Ministry of Finance, which the authors suggest may lead to increased political interference.
• South Africa's tax system is characterized by a high reliance on personal income tax (PIT), which contributed 37.2% of total tax revenue in 2016/17, making it more progressive than systems relying heavily on consumption taxes.
• The South African Revenue Service (Sars) suffered a significant loss of public confidence and revenue due to political interference and corruption during the tenure of Commissioner Tom Moyane.
• Mozambique's tax system is heavily impacted by a 'hidden debt' scandal involving approximately US$2 billion in undisclosed loans, which led international donors to suspend budget aid.
• In Mozambique, the use of extensive tax exemptions for 'megaprojects' and the extractive industry is perceived as unfair and deprives the state of essential development revenue.
• Cameroon's tax-to-GDP ratio has remained relatively stable, averaging around 14% since the 1990s, despite various administrative reforms.
• In Cameroon, there is a perceived 'pervasive toll' where citizens feel they are constantly making payments—both official and unofficial—without receiving corresponding public services.
• The 'black tax' in South Africa—the moral obligation of the emerging black middle class to support extended family—is viewed by some as a form of implicit double taxation that hinders economic advancement.
• Across all three countries, the failure of the state to provide basic public goods (health, education, infrastructure) erodes the 'fiscal contract' and reduces the intrinsic motivation of citizens to pay taxes.
• The report identifies a global trend of 'administrative approach' to tax reform driven by IFIs, focusing on VAT, simplification, and semi-autonomous authorities, but argues this often ignores the political nature of taxation.

APA

GUIMARÃES, A. S., DUCA, F., & NDLOVU, T. (n.d.). TAXATION AND STATE–SOCIETY RELATIONS IN SUB-SAHARAN AFRICA. Public Affairs Research Institute. https://pari.org.za/wp-content/uploads/2018/06/20180506_TaxationAndStateSocietyRelations_Report_GuimaraesDucaNdlovu.pdf

Chicago

GUIMARÃES, ALICE SOARES, FEDERICA DUCA, and THATSHISIWE NDLOVU. TAXATION AND STATE–SOCIETY RELATIONS IN SUB-SAHARAN AFRICA. Public Affairs Research Institute, n.d. https://pari.org.za/wp-content/uploads/2018/06/20180506_TaxationAndStateSocietyRelations_Report_GuimaraesDucaNdlovu.pdf.

Wikipedia

{{cite report |last1=GUIMARÃES |first1=ALICE SOARES |last2=DUCA |first2=FEDERICA |last3=NDLOVU |first3=THATSHISIWE |title=TAXATION AND STATE–SOCIETY RELATIONS IN SUB-SAHARAN AFRICA |publisher=Public Affairs Research Institute |url=https://pari.org.za/wp-content/uploads/2018/06/20180506_TaxationAndStateSocietyRelations_Report_GuimaraesDucaNdlovu.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{guimaresndtaxation, author = {GUIMARÃES, ALICE SOARES and DUCA, FEDERICA and NDLOVU, THATSHISIWE}, title = {{TAXATION AND STATE–SOCIETY RELATIONS IN SUB-SAHARAN AFRICA}}, institution = {Public Affairs Research Institute}, url = {https://pari.org.za/wp-content/uploads/2018/06/20180506_TaxationAndStateSocietyRelations_Report_GuimaraesDucaNdlovu.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }