Strengthening the African economy through fair taxation

How tax transparency and anti-corruption-measures help drive sustainable growth

Illicit financial flows – this sounds bad, but what does it actually mean? This concept is, for example, used to refer to the billions in tax revenue that flow out of African countries every year. The money ends up in tax havens or on dubious bank accounts. In this way, governments lose money that would be urgently needed to fund education, healthcare, or infrastructure. How can these illegal financial flows be stopped? And how can international cooperation and cutting-edge technologies help governments accomplish this goal?

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WU Vienna’s Global Tax Policy Center has been working since 2015 to address this challenge. In cooperation with organizations such as the African Tax Administration Forum (ATAF), the African Tax Institute (ATI), UNCTAD, and the United Nations Office on Drugs and Crime (UNODC), the Global Tax Policy Center carries out research to help African countries improve their tax transparency and anti-corruption systems.

Over 1,000 experts from 35 African countries and from international and civil society organizations have taken part in the conferences, working groups, and studies organized as part of this project so far. One of the main highlights was the conference on tax transparency and corruption held in Vienna in July 2023, where the president of the African Parliamentarians’ Network Against Corruption (APNAC) presented WU with the APNAC’s Champion Against Corruption Annual Award, in recognition of the valuable work done since the start of the program.

Significant progress and improvements have been made thanks to the project. For example, a model memorandum of understanding for the cooperation between public authorities has been drawn up to help tax administrations, financial supervisory authorities, and the judiciary work together more efficiently. New technologies such as artificial intelligence make it possible to detect and prosecute illicit financial flows much more effectively than before. In addition, civil society organizations now have a better understanding of complex tax issues and participate more actively in the political discourse.

The impact achieved is considerable. Through international cooperation and research, the project has shaped the political agenda for combating illicit financial flows in Africa to a significant extent. WU is recognized as a leading partner for developing innovative and fair solutions, and its work helps in laying the foundation for a transparent and stable business environment. And the result? Africa is not only building trust but also recovering valuable resources – for a sustainable economic future.

The hand over of the APNAC Champion Against Corruption award in 2023

At the Conference on Tax Transparency and Corruption, hosted by WU on July 4-6, 2023, the chair of the group of African Parliamentarians Network Against Corruption (APNAC) presented the Institute with “Champion Against Corruption Annual Award” noting that “it was in recognition of all the work done by the Institute since the inception of this program in 2015.”

Key Facts

Countering illicit financial flows (IFF) in Africa

Almost 1000 active participants from 35 African countries and international and regional organisations plus CSO (Civil Society Organisations), academics and business

  • Duration: 2015-2024

  • Institute: WU Global Tax Policy Center at the Institute for Austrian and International Tax Law (WU GTPC)

  • Department: Public and Tax Law Enforcement

  • Additional WU Collaborators and Partners: World Bank, UNODC, African Tax Justice Network and African Tax Institute

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