Liberia, Five Others Benefit From U.S.$5.3m AfDB Tax Administration Project
Liberia is among six West African countries set to benefit from a US$5.3 million African Development Bank (AfDB)-financed initiative designed to strengthen tax administration, improve domestic revenue mobilization, and build resilient revenue systems across the region.
The four-year Strengthening Tax Administration Capacity Project in West Africa (STACP-WA) was officially launched by the West African Tax Administration Forum (WATAF) on Tuesday, August 18.
The initiative is financed through a UA4 million grant from the African Development Fund/Transition Support Facility Pillar III, equivalent to approximately US$5.3 million. It will benefit Burkina Faso, The Gambia, Guinea, Guinea-Bissau, Liberia, and Sierra Leone.
Launching the project, WATAF Executive Secretary Jules Tapsoba described STACP-WA as a major milestone for tax administration in West Africa.
"This project is a milestone for WATAF and for tax administration in West Africa," Tapsoba said.
He explained that while the six countries are the direct beneficiaries, WATAF intends to use the initiative as a foundation for expanding support to other member states through future projects addressing specific tax administration needs.
Tapsoba said STACP-WA represents WATAF's first externally financed multilateral initiative of this scale and signals a new phase in the organization's contribution to domestic revenue mobilization, institutional resilience, and regional cooperation.
Presenting an overview of the project, African Development Bank Principal Governance Officer Ibrahim Ansu Bangura said the initiative comes at a critical time when domestic revenue mobilization has become increasingly important for financing development and strengthening economic resilience.
Bangura said the project will help beneficiary countries improve domestic, trade, and extractive-sector tax administration, strengthen compliance, and reduce revenue leakages.
It will also support digital tax tools, VAT and e-invoicing reforms, taxpayer education, gender-responsive tax systems, and improved governance of natural resource revenues.
According to Bangura, the project has three main components: strengthening the efficient administration of domestic and trade taxes; improving natural resource revenues in resource-rich countries; and supporting project management, coordination, and institutional capacity development within the WATAF Secretariat.
For Liberia, the initiative is expected to provide additional technical and institutional support as the country seeks to strengthen domestic resource mobilization and reduce dependence on external financing.
Delivering a goodwill message on behalf of the ECOWAS Commission, Acting Director of the Directorate of Customs Union and Taxation Darlingston Y. Talery congratulated WATAF and commended the AfDB for investing in domestic revenue mobilization.
Talery said stronger tax administrations are essential to sustainable development, fiscal sovereignty, and regional cohesion. He added that ECOWAS remains prepared to support the project through policy coordination, technical cooperation, and alignment with regional tax reforms.
WATAF's immediate past Executive Secretary, Babatunde Oladapo, welcomed the launch, saying he was pleased to see an initiative conceived several years ago become a reality.
He urged WATAF, ECOWAS, the AfDB, and beneficiary countries to maintain strong collaboration and draw on regional tax experts to ensure effective implementation and measurable results.
African Development Bank Senior Fragility and Resilience Officer Dr. Tarila Ebiede also emphasized effective implementation, sustainability planning, and institutional coordination.
The four-year project is expected to help Liberia and the other beneficiary countries improve revenue collection, reduce leakages, strengthen tax administration, and build resilient systems capable of supporting inclusive and sustainable development.
Read the original article on Liberian Observer.