African Development Fund to Provide $5.52 Million Grant to West African Tax Administration Forum to Boost Domestic Revenue Mobilization

11 March 2026
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African Development Bank (Abidjan)

The African Development Bank Group has signed a $5.52 million grant agreement with the West African Tax Administration Forum (WATAF). The funds will launch the Strengthening Tax Administration Capacity Project in West Africa (STACP-WA), a major regional initiative designed to strengthen the capacity of six West African countries to mobilize, manage, and safeguard domestic revenues more effectively.

The grant is to be financed from the Transition Support Facility (TSF) of the African Development Fund (ADF), the Bank Group's concessional window.

Bank Group Director General for Nigeria, Abdul B. Kamara and Jules Tapsoba, Executive Secretary of WATAF signed the agreement, which reinforces a shared commitment to building stronger, more transparent, and more resilient tax systems capable of driving sustainable development across the region.

STACP-WA represents a significant investment in fiscal sustainability and deeper regional integration across West Africa. It will modernize tax and customs administration, strengthen oversight of natural resource revenues, and equip member states with the tools and skills needed to reduce leakages and curb illicit financial flows. The project combines analytical work, technical assistance, digital innovations, and high-level policy dialogue to help countries align their revenue systems with regional directives and international standards.

The initiative will deliver a range of regional public goods, including a new electronic invoicing toolkit, training modules aligned with the African Continental Free Trade Area (AfCFTA), enhanced transfer pricing assessment tools for extractive sector oversight, and a West African platform to support young tax researchers. It will also provide targeted assistance in selected countries in areas such as Value Added Tax (VAT) implementation, customs valuation, mining sector governance, and gender-responsive tax policy.

The Economic Community of West African States (ECOWAS), through its domestic tax unit, is expected to benefit from the project's regional platforms, tools, and knowledge products. Tax authorities from Burkina Faso, Guinea, Guinea-Bissau, The Gambia, Liberia, and Sierra Leone will serve as the primary country beneficiaries, with WATAF acting as the executing agency. ECOWAS and the Nigeria Revenue Service (NRS) are expected to collaborate with WATAF in providing technical assistance to support smooth and effective project implementation.

Speaking at the ceremony, Dr. Kamara said: "Strengthening tax administration is essential for creating the fiscal space that will enable countries to finance their development priorities. The Bank is pleased to support WATAF to help advance regional reforms that enhance efficiency, curb leakages, and promote governance in both domestic taxation and the extractive sectors. This partnership will deliver long-term benefits for regional stability and economic transformation in the West Africa sub-region."

WATAF Executive Secretary, Mr. Jules Tapsoba, added: "This marks the first time WATAF is implementing a region-wide tax administration project financed by the African Development Bank Group, and it represents a significant milestone for our institution and for West Africa. As the executing agency, we are proud to lead this pioneering effort, which will help our member countries enhance revenue mobilization, reduce leakages, and strengthen domestic revenue systems across the region. This partnership opens a new chapter for coordinated tax administration support in West Africa."

Project delivery will be led by a dedicated Project Implementation Unit (PIU) within WATAF and overseen by a multi-stakeholder Project Steering Committee (PSC) representing ECOWAS, WATAF leadership, and beneficiary countries. Implementation will run until 30 July 2030, with a strong focus on institutional strengthening and long-term sustainability.

The Bank's support for this initiative through funding from its Transition Support Facility (TSF) reflects its commitment to helping African countries develop stronger revenue systems, improved governance, and enhanced resilience to economic shocks.

Read the original article on African Development Bank (AfDB).

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