Regional Blocks: Assets for Africa Domestic Resources Mobilization.

by Aaron Kaah Yancho

Domestic Resource mobilization (DRM) provides a cornerstone for Africa development in the 21 century but the continent must embrace regional blocks to be able to maximize not only the gains in this domain but also regional and institutional cooperation. This was the concern raised by Braham Benjelloun Touimi Administrative Delegate General in the Moroccan Bank for external relations and foreign affairs during the plenary session that focused on the challenges and opportunities arising from DRM in Africa October 14 during the African Development forum.

Mr.Brahhim Benjelloun said regional blocks on DRM could help foster internal cooperation, increase market sizes and more trade. He elaborated like the rest of the keys speakers that cooperation could  reduce the multiple internal setbacks that arise within the 54 nations of the continentthrough the encouragement of the private sector and widening of the tax base for Africa. He called on governments to be accountable to interest the citizens of the continent to pay their taxes for the development.

Mr. Brahim added that Africa was growing in population, and there was need to finance the best infrastructure to meet the needs of its people. Though saving in Africa were low, all the  discussants during the session opined that the continent needed 93billion dollars annually for investment in human and infrastructural development; the session accepted that foreign aid came with strings attached to it nor dictated to suit the whims and caprices of the donor especially within the mining sector.

 The lack of human resources at all levels to push this sector ahead were some of the challenges pinpointed; theintroduction of valve added and sales tax systems were some of the new concepts that could boast the growth of Africa. Complex tax codes and high compliance burdens imposed by tax inefficient administrators werea challenge asroadblocks for the small enterprises to remain informal. 

As a solution, tax collection reforms linked to growth strategy and a general discussion about governance and transparency could eventually lead to increased public resources for the continent. The continent was also advice to do more to deliver on their pledges of public adherence by putting pressure on their external deals to strike decent and rewarding deals with the African nations

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