Need for Broader Tax Base Through Business Formalisation in Africa

TLDR

• READ MORE: Nigeria’s Crisis of Faith: How to Protect Religious Freedom A sustainable fiscal strategy should therefore prioritise economic growth alongside revenue generation through a broader tax base.
• A broader tax base begins with bringing more businesses into the formal economy.
• Instead of relying primarily on higher taxes, African governments should formalise more businesses, reduce regulatory barriers, and promote private-sector growth as a more sustainable path to prosperity.
• In Africa, many businesses remain informal because registering a business is expensive, time-consuming, or overly complicated.
• Local governments and business registration agencies should also conduct public awareness campaigns to help entrepreneurs understand the benefits of formalisation.