Championing the UN Framework Convention on International Tax Cooperation

The document argues that the current OECD-led international tax framework is inadequate for African nations, which lose significant revenue to illicit financial flows (IFFs) and base erosion and profit shifting (BEPS). It proposes that South Africa, during its G20 presidency, should promote the UN Framework Convention on International Tax Cooperation as a more inclusive and democratic alternative. The author suggests several levers for the G20 to support African development, including strengthening tax rules for digital economies, enhancing financial information exchange, investing in digital infrastructure and AI for tax administration, and promoting quality infrastructure to expand the tax base.

• Illicit financial flows (IFFs) and base erosion and profit shifting (BEPS) cause massive revenue losses for African economies. Between 1980 and 2018, Sub-Saharan Africa lost an estimated $1.3 trillion through IFFs, and the continent currently loses $88.6 billion annually to IFFs, which is 3.7% of its annual GDP. BEPS costs Africa approximately $15 billion every year.
• The OECD's tax frameworks are viewed as ineffective for African countries because they often exclude their interests and restrict source-based taxation to attract foreign investment. The UN Tax Convention is presented as a more inclusive and democratic alternative, supported by the African Union and over 120 countries.
• South Africa can use its G20 presidency to address shortcomings in the OECD Inclusive Framework's Pillar 1 and Pillar 2, specifically regarding the minimal share of profits allocated to market jurisdictions and the need for a global minimum tax rate to prevent profit shifting.
• To improve tax administration and curb IFFs, the G20 should support Africa's digital transformation. This includes establishing a digital infrastructure investment fund for fibre-optic cables and 5G networks, creating open-access fibre networks, and funding AI research hubs in African universities to develop tailored tax solutions.
• The document recommends enhancing transparency through the automatic exchange of financial information and the establishment of public beneficial ownership registers to reveal true business owners and reduce money laundering and tax evasion.
• Investment in quality, sustainable infrastructure—particularly in renewable energy—is identified as a way to expand the tax base, create jobs, and make economic frameworks less susceptible to financial leakages.

APA

Monkam, N. (2024). Championing the UN Framework Convention on International Tax Cooperation. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_5_G20InternationalTaxation.pdf

Chicago

Monkam, Nara. Championing the UN Framework Convention on International Tax Cooperation. South African Institute of International Affairs, 2024. https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_5_G20InternationalTaxation.pdf.

Wikipedia

{{cite report |last1=Monkam |first1=Nara |title=Championing the UN Framework Convention on International Tax Cooperation |publisher=South African Institute of International Affairs |date=5 September 2024 |url=https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_5_G20InternationalTaxation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{monkam2024championing, author = {Monkam, Nara}, title = {{Championing the UN Framework Convention on International Tax Cooperation}}, institution = {South African Institute of International Affairs}, year = {2024}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2024/09/SAIIA_PN_5_G20InternationalTaxation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }