Civil society organisations, researchers, and policy actors from the East African Community (EAC) and Southern African Development Community (SADC) are calling for urgent reforms to strengthen Domestic Resource Mobilisation (DRM) across the two regions.
This call was made during a two-day Regional Dialogue in Entebbe hosted by the Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI).
The dialogue highlighted entrenched weaknesses in tax systems, public investment management, debt governance, and the global financial architecture—factors that continue to deny African countries the resources required for sustainable development.
Participants from AFRODAD, Tax Justice Network Africa, Transparency International Kenya, EACSOF, Youth for Tax Justice Network, and others expressed concern that without decisive action, the EAC and SADC will remain trapped in low domestic revenue mobilisation, rising debt distress, and reliance on external financing.
Senior economist Dr. Fred Muhumuza, a former advisor to Uganda’s Ministry of Finance, emphasised the need to reassess tax incentives.
“Government audits show these waivers often fail to meet goals like job creation. We must rationalize tax expenditures to avoid forgoing billions while enriching a few,” he said.
EALA legislator George Odong underscored the limitations that hinder regional integration efforts.
“EALA’s legislative power is constrained by the EAC Treaty, sovereignty issues, and unprincipled competition among states—demanding harmonized policies for true integration,” he noted.
The dialogue also stressed the importance of efficient public investment management, transparency in loan acquisition, tackling illicit financial flows, and fairer global financial rules. Participants pointed out that tax incentives continue to cost countries 3–6% of GDP annually, while illicit flows and weak oversight undermine fiscal stability.
Civil society organisations were urged to continue monitoring government spending, tracking illicit flows, and promoting fiscal literacy to strengthen accountability across the region.
Participants also welcomed the African Credit Rating Mechanism and encouraged coordinated EAC-SADC engagement to push for reforms in the global financial system.
As Dr. Muhumuza stated:
“No country develops through over-taxation and borrowing alone—governance is key.”
Odong added:
“Harmonisation isn’t optional; it’s essential for collective bargaining.”
The Entebbe dialogue echoed a shared message: Africa must strengthen its capacity to finance its own development through transparency, justice, and institutional reform, or risk remaining locked in underdevelopment.