African Tax Administration Forum (ATAF) gala dinner speech address by the Commissioner of SARS, Mr Oupa Magashula

Your Excellency, President of the Republic of Uganda
Ministers of Parliament of Uganda
Senior Members of governments
Revenue Authority Commissioner Generals and Commissioners
Executive Secretaries of COMESA, SADC, SACU
The CEO of New Partnership for Africa's Development (NEPAD)
Representatives of Development Partners
Representatives of International and Regional Organisations
Honourable guests,
Ladies and gentlemen

Good evening Bonsoir Boa Noite Mr President, Upon my arrival I was reminded that Uganda is also known as the “Pearl of Africa” and it is fantastically beautiful - both in history, culture and potential.

Having seen the friendly people on the streets hurryingly going about mobilising their personal resources, I have no doubt that we chose the most appropriate city to host the inaugural conference of the African Tax Administration Forum with the theme “Revenue mobilisation and state-building in Africa in the current global economic environment”. Uganda can teach us much about keeping our people in the shops until late at night. But given the nature of our work, I have to admit, it just focuses my attention on the potential tax revenues out there. But that is conference material. After your long journeys, I will spare you numbers and specifics.

However, I cannot promise the same kindness in the morning. It is wonderful for me to see all of you here - old and new friends and colleagues. I want to thank you, personally and on behalf of my Steering Committee colleagues and on behalf of the African continent for joining us here. We have been together on this journey for little over a year. We came together in Pretoria where we sowed a seed, an idea – to establish an organisation unique to Africa, for Africans and accountable to Africa. This seed was the African Tax Administration Forum. In the fertile soils of Africa, within a year, the seedling has grown into a small but strong baobab tree. Its solid roots have already spread to 22 African countries, and with some care and nurturing it will spread even further to, finally, represent the whole of the African continent. The importance of taxation for the African continent cannot be sufficiently underlined.

Taxation as a potential source of development finance is without a doubt formidable. African capital flight was estimated as being in the region of USD400 billion in 2007, whilst the total debt burden of Africa was USD215 billion. The current financial and economic crisis has no doubt exacerbated these figures to several billions more. This is happening whilst the global financial and economic crisis, recession and increased food and energy prices are pushing as many as 200 million people into extreme poverty, eradicating Africa’s progress towards improved development and alleviating poverty.

This cannot happen and we cannot allow it. Therefore, is it important for African countries to mobilise resources, in a sustainable manner, which are essential to finance development agendas. And it is even more important for us, present here tonight, to work together towards optimising domestic revenue collection by identifying and developing best practices, growing skills, building capacity and sharing experiences across our borders. That is what this gathering is about.

The next two days of the conference present us with what should be a seminal event - an opportunity to jump start an organisation which can make a real impact in the area of cooperation and knowledge sharing on taxation and resource mobilisation. We will discuss the impact of the global financial crisis on African economies; look at revenue mobilisation and state-building in Africa by referencing real country experiences; and engage with our development partners to strengthen cooperation. It is not okay for Africa to do some things right and others wrong. We should be driven by the current climate of international cooperation to - address the causes and effects of the global financial and economic crisis and - the willingness to amplify Africa’s voice in international organisations through the restructuring of the World Bank and other international organisation to compliment our own work within the Continent.

We have already seen these commitments in the decision of the G20 in London in April 2009 to treble the resources available to the IMF to $750 billion and to support a new Special Drawing Rights allocation of $250 billion in support to restore credit, growth and jobs in the world economy. We have seen this in the statement of the World Bank President Robert Zoellick’s that the World Bank is pursuing an ambitious program of reform to enable the institution to become more efficient and effective while also gaining more legitimacy among the developing countries that it serves. And, we have seen this at the recently concluded Barcelona preparatory meeting on climate change, where developing countries took a hard stand to ensure real commitments on the part of developed countries. We should be inspired in our discussions by the thought that our successes today will inform those of tomorrow. We have a responsibility to succeed. Let us be ready and eager in the morning to lay the foundations for real change.

Thank you and good evening. 

Source: South African Revenue Services

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