The African Development Bank Group (AfDB) has signed a $5.52 million grant agreement with the West African Tax Administration Forum (WATAF) to support a major regional initiative aimed at strengthening tax administration systems across West Africa.
The funding will launch the West Africa Tax Administration Capacity Building Project (STACP-WA), which aims to help countries more effectively mobilize and manage domestic revenues while improving the governance and transparency of their fiscal systems.
The grant will be funded through the Transition Support Facility (TSF) of the African Development Fund (ADF), the concessional lending arm of the African Development Bank Group.
Strengthening the profit structure throughout the region
The agreement was signed by Abdul B. Kamara, Director-General of the African Development Bank Group of Nigeria, and Jules Tapsoba, Director-General of WATAF.
This initiative reflects a shared commitment to improving tax management capacity and building more resilient fiscal systems that can support sustainable economic development in West Africa.
STACP-WA will focus on modernizing tax and customs administration while strengthening oversight of revenues from natural resources, a critical sector for many West African economies.
The project also aims to reduce revenue leakages and combat illicit financial flows that continue to undermine public finances across the region.
Supporting fiscal sustainability and regional integration
This commitment represents a significant investment in fiscal sustainability and regional cooperation.
The main components of the project are:
Modernization of tax and customs administration systems
Increase monitoring of revenues from extractive industries
Developing digital tools to improve tax compliance
Strengthening policy collaboration across West African countries
The program will combine analytical research, technical assistance, digital innovation and policy dialogue to align the country’s tax system with regional and international standards.
Regional tools and knowledge platform
This project will provide several regional resources to strengthen tax management capacity.
These include:
New e-invoicing toolkit to improve tax reporting
Training program in collaboration with the African Continental Free Trade Area (AfCFTA)
Enhanced transfer pricing tools to monitor the mining sector
A research platform for young tax scholars in West Africa
Additionally, the project will provide targeted assistance to participating countries in areas such as:
Introduction of Value Added Tax (VAT)
customs valuation system
Mining sector governance
Gender-sensitive tax system
Participating countries and regional partners
The main beneficiaries of this project will be six countries:
Burkina Faso
Guinea
Guinea-Bissau
gambia
Liberia
Sierra Leone
WATAF will act as the implementing agency and work closely with regional partners such as the Economic Community of West African States (ECOWAS) and the Nigeria Revenue Service (NRS).
ECOWAS is expected to benefit from the regional tools, data platforms and policy resources developed through this project.
Supporting long-term economic transformation
Speaking at the signing ceremony, AfDB Director-General Abdul B. Kamara said stronger tax systems are essential to enable countries to finance their development priorities.
“Strengthening tax administration is essential to create fiscal space for countries to finance their development priorities,” said Camara.
He said the project will support reforms aimed at increasing efficiency, reducing revenue losses and strengthening governance.
“These efforts will have long-term benefits for regional stability and economic transformation in West Africa,” he added.
Milestones of local tax cooperation
WATAF Director General Jules Tapsoba said the initiative was a major milestone for both the organization and the region.
“This is the first time WATAF has implemented a regional-scale tax administration project with funding from the African Development Bank Group,” Tapsoba said.
He added that the partnership will help member states strengthen their domestic revenue systems and improve coordination among tax authorities across West Africa.
Implementation and governance
The project will be managed by the Project Implementation Unit (PIU) within WATAF and overseen by the Project Steering Committee (PSC) representing ECOWAS, WATAF leadership and participating countries.
Implementation is expected to continue until July 30, 2030, with a focus on institutional strengthening and long-term sustainability.
The African Development Bank Group said the initiative reflects its broader commitment to helping African countries build stronger financial systems and become more resilient to economic shocks.
