Recent Report Reveals Increasing Trend in Domestic Resource Mobilization in Africa
The recent report on Public Revenue Statistics in Africa 2025 reveals an upward trend in domestic resource mobilization on the continent. In 2023, the average tax-to-GDP ratio in Africa reached 16.1%, marking a third consecutive year of progress. However, behind this average lie significant national disparities, ranging from 2.9% in Somalia to over 30%.
Top 5 African Countries with the Highest Tax-to-GDP Ratio in 2023
The following countries have the highest tax-to-GDP ratio in Africa:
- Tunisia: 34.0%
- Seychelles: 29.1%
- Morocco: 28.5%
- South Africa: 26.5%
- Mauritius: 23.1%
Tunisia tops the list with a ratio of 34.0%, exceeding the average of OECD countries (33.9%). The country has experienced a spectacular increase, recording the largest rise on the continent between 2013 and 2023, with a 5.7 percentage point increase.
Key Drivers of Tunisia's Tax Pressure
According to the report, Tunisia's tax pressure is based on three main pillars:
- Personal Income Tax (IRPP): Contributed 3.3 percentage points to the increase over the past decade.
- VAT: Increased by 1.7 percentage points over the same period.
- Social Security Contributions: Account for over 20% of Tunisia's total tax revenue.
This increase can be partly explained by a 147% surge in the wage bill due to successive salary increases, which mechanically boosted revenue from IRPP and social security contributions.
Other Top Performers
Seychelles (29.1%) and Morocco (28.5%) closely follow Tunisia. Seychelles' performance is driven by the tourism sector, which generates around half of its VAT revenue. Morocco, like Tunisia, stands out for the importance of social security contributions in its tax structure.
South Africa (26.5%) maintains a high tax pressure, relying heavily on income tax and profits, which account for more than half of its total revenue. Finally, Mauritius completes the top 5 with a ratio of 23.1%, showing notable efficiency in VAT collection compared to its neighbors.
Challenges Ahead
Despite these peak performances, the report highlights that 20 of the 38 countries studied still have a tax-to-GDP ratio below 15%. This threshold is considered essential by experts to sustainably finance infrastructure, health, and education, which are crucial for the continent's inclusive growth.
