Kampala — AFRICA governments have been urged to work towards fully financing their budgets.

"Africa is a continent of paradoxes. While we have huge rivers, we have little electricity," President Yoweri Museveni said at the launch of the African Tax Administration Forum at Kampala Serena Hotel.

The forum, conceived in South Africa last year, brings to table the continent's tax authorities and administrators as they attempt to forge smarter ways of tapping into the continent's tax reserve as well as proper revenue management.

Museveni urged the continent to explore ways of turning Africa's potential, like the huge informal sector, into taxable entities. He said this will turn the continent's fortunes around and end dependency.

Museveni also talked about the vast deposits of minerals and precious stones found all over Africa. "When will the deposits get out of the ground and benefit our people?" asked Museveni.

He said tax revenue mobilisation was paramount because it is potentially the biggest source of long-term financing.

Uganda has made significant strides in reviving its tax figures. By 1986, annual revenue collections were a meagre $1.6m. Revenue collection now stands at about $2,126m.

However, there remains a huge untapped tax base and potential.

Museveni said although the Uganda Revenue Authority had not performed as expected, "they have done something at least."

"That is why we have this freedom," said Museveni, who was referring partly to the energy fund (now over $300m) that the Government set up to kick-start energy projects across the country when donor support proved inconsistent during the first phase of building the Bujagali Dam.