According to The Conversation, there are two big challenges African countries face when it comes to managing public finances.
First, many lack fiscal capacity on account of structural weaknesses of their economies and gaps in tax administration.
Predominant informality of wage employment and reliance on subsistence agriculture in most countries make it difficult to raise revenue beyond consumption and border taxes.
Consequently, on average, African countries collect a mere 16.6% of gross domestic product (GDP) in taxes.
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