NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Much has been written about the need for African countries to collect more tax revenue from citizens and businesses. The IMF has been imploring sub-Saharan countries, particularly over the last decade, to focus on expanding and diversifying their tax bases.

Some countries have taken heed of the advice. Yet most haven’t moved beyond lip service.

When it comes to new taxes, we often see African governments (especially those led by new administrations) setting their sights on commodity players like mining companies and oil multinationals.

Now there’s also a growing trend of governments looking to their fastest-growing sector of the past two decades: the mobile phone industry.

Photo courtesy of Casey Dlott.