Zambia and South Africa to join forces on tax collection

24 Aug 17

Zambia and South Africa intend to collaborate in tax administration, treasury management, revenue collection, trade and revenue leakage prevention.

This development was announced at a meeting in Pretoria between Zambia’s finance minister Felix Mutati and South Africa’s finance minister Malusi Gigaba.

Activities will also include staff exchange programmes and investment in the north-south corridor from Kasumbalesa-Chililabombwe to South Africa.


Gigaba said Zambian staff would be invited for study tours to the South African Revenue Service, Industrial Development Corporation, Public Investments Corporation, the Development Bank of Southern Africa, the Land Bank and other relevant organisations.


“Tax administration and revenue collection are our key areas of focus, therefore staff exchanges will be a great initiative for both our countries,” he said.


The two countries intend to sign a memorandum of understanding in October.


Mutati said South Africa’s investments in Zambia were “progressively creating opportunities for tax revenue collection for the treasury through the Zambia Revenue Authority”.


Zambia’s permanent secretary for budget and economic affairs Pamela Kabamba said the country’s budget deficit was compounded by a low revenue-to-GDP ratio, which stands at 17% compared to South Africa’s 27%.


Kabamba said: “We are taking measures to boost our revenue collection. The option of borrowing has attendant costs hence the need to up our game in domestic resource mobilisation.”

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