Economic activity in sub-Saharan Africa has weakened markedly. To be sure, growth—at 3¾ percent this year and 4¼ percent in 2016—still remains higher than in many other emerging and developing regions of the world. Still, the strong growth momentum evident in the region in recent years has dissipated in quite a few cases.
In recent years the sub-Saharan African region has experienced strong real GDP growth and substantial trade integration. However, growth in sub-Saharan Africa’s trade volumes has not kept up with growth in the volume of global trade during this period and its trade imbalances have begun to rise in recent years. Meanwhile, the drivers of growth since the mid-1990s—improved policies, increased aid, debt relief, abundant global liquidity, and high global commodity prices—have started to dissipate. Moving forward, to sustain rapid growth the region will need to diversify away from commodities, increase export sophistication, and integrate into global value chains. This chapter assesses how competitiveness indicators in sub-Saharan Africa have evolved, and on this basis asks if the region is well placed to diversify its export base and sustain growth. It also discusses policy options to improve competitiveness.
This handbook is one of the first of its kind to focus attention on effectively administering revenues from extractive industries. It provides policymakers and officials in developing and emerging market economies with practical guidelines to establish a robust legal framework, organization, and procedures for administering revenue from these industries. It discusses transparency and how to promote it in the face of increasing demands for clarity and how developing countries can strengthen their managerial and technical capacity to administer these revenues.
L’administration des recettes fiscales tirées de ressources naturelles présente des difficultés particulières. Ce manuel est l’un des premiers ouvrages à s’intéresser de près à l’efficacité de l’administration des recettes issues des industries extractives. Il fournit aux décideurs politiques et aux agents des pays en développement et émergents des instructions pratiques pour mettre en place un cadre juridique, une organisation et des procédures solides pour gérer les recettes issues de ces industries. Il aborde le thème de la transparence et de sa promotion face une demande croissante des parties prenantes nationales et internationales pour plus de clarté et de responsabilité dans l’administration des recettes publiques tirées des ressources naturelles. Il approfondit également les solutions pour que les pays en développement parviennent à renforcer leurs capacités techniques et managériales pour mieux administrer ces recettes.
The IMF shares its expertise with officials in member countries and provides training to them—what it calls “capacity development”—to help countries build strong institutions and boost skills to formulate and implement sound macroeconomic and financial policies. Capacity development is closely linked to the IMF’s surveillance and lending activities and highly appreciated by member countries.
The administration of government revenues from extraction of nonrenewable natural resources 1 differs in various ways from regular tax administration and presents special difficulties. In theory, it involves the same principles and practices as administration of other taxes, but because of its particular features, tax authorities often lack the confidence and ability to handle it, and general tax administration experts may feel unqualified to advise them.
The first step in assessing natural resource revenue tax administration in any country must be a review of its legal and policy framework: the rules that determine the tax payable by natural resource businesses (not the administrative rules, discussed separately in Chapter 4). For large natural resource companies those rules mostly define the nature of the administrative task. For those companies the main challenge is generally not—as it often is with smaller businesses—business account accuracy and filing and payment compliance. Instead the main task is to ensure that the taxes they pay are calculated in accordance with policy intentions underlying natural resource revenue legislation and agreements. This is, therefore, the main focus of natural resource revenue administrative efforts and the basis for assessment of capacity-building needs.
Natural resource revenue administration takes place within a wider government policy and regulatory framework. This covers not just fiscal policy and regulation, but also natural resources management and industry policy and regulation, and (where relevant) commercial participation. In any particular country it is important to understand the nature of this wider framework.