Championing the UN Framework Convention on International Tax Cooperation

This policy note by the South African Institute of International Affairs argues that South Africa should use its upcoming G20 presidency to champion the UN Framework Convention on International Tax Cooperation. The author contends that this convention is necessary to combat illicit financial flows (IFFs) and base erosion and profit shifting (BEPS), which severely deplete the resources of African economies and hinder sustainable development.

• Illicit financial flows (IFFs) and base erosion and profit shifting (BEPS) cause massive financial losses for Africa. Between 1980 and 2018, Sub-Saharan Africa lost an estimated $1.3 trillion through IFFs. Currently, Africa loses $88.6 billion annually to IFFs, which represents 3.7% of the continent's annual gross domestic product. BEPS costs the continent approximately $15 billion every year.
• The UN Framework Convention on International Tax Cooperation is presented as a more inclusive and democratic alternative to the OECD framework, which the author claims has often failed to meet the needs of African countries by restricting source-based taxation to attract foreign investment.
• South Africa can leverage its G20 presidency and the African Union's (AU) permanent member status in the G20, granted in 2023, to build coalitions with developing countries and engage in diplomacy with EU countries to overcome resistance to the UN Tax Convention.
• The author argues that the OECD Inclusive Framework's Pillar 1 and Pillar 2 have not effectively served Africa due to complex implementation and minimal profit allocation to market jurisdictions. South Africa should lead efforts to ensure a global minimum tax rate under Pillar 2 and fair allocation of taxing rights under Pillar 1.
• To improve tax administration and curb IFFs, the G20 should support the implementation of automatic financial information exchange, the creation of public beneficial ownership registers, and adjustments to the OECD's Common Reporting Standard (CRS) to reduce compliance costs for developing countries.
• The policy note recommends that the G20 invest in Africa's digital infrastructure to enable the use of AI and data analytics for tax administration. Specific proposals include a digital infrastructure investment fund for fibre-optic cables and 5G networks, open-access fibre networks, and the funding of AI research hubs in African universities.

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} }