The Tax Justice Network Africa (TJNA) and the Tunisian Observatory of Economy (TOE), along with other civil society organizations (CSOs), have been engaged in a high-impact campaign to establish global and continental alliances across Africa. Their goal is to resist the OECD-led global tax reforms and amplify the voices of African and Global South organizations and governments in advocating for a new framework for international tax cooperation under the auspices of the United Nations (UN). This campaign, aiming to promote more equitable global tax policies, seeks to connect local, regional, and global efforts to protect the interests of African countries in tax matters for development and rights financing. 

In the drive for reform, Africa has demonstrated exceptional leadership. In May 2022, African Ministers of Finance, Planning, and Economic Development adopted a groundbreaking resolution urging the UN to initiate negotiations for an international convention on tax matters, inclusive of all member states. This initiative gained further traction in November 2022 when the African Group, spearheaded by Nigeria, presented a revised resolution at the UN. This resolution focused on the "Promotion of inclusive and effective international tax cooperation at the United Nations." 

On December 30, 2022, the United Nations General Assembly adopted Resolution 77/244, which strongly advocates for the advancement of inclusive and effective cooperation on tax matters. This resolution mandates the UN Secretary-General to compile a comprehensive report through consultations with various stakeholders, underscoring the global commitment to tax justice and equitable international tax cooperation. 

These efforts highlight the strategic and coordinated push by African nations and allied organizations to reshape the global tax landscape, ensuring that it is fair and beneficial for all, particularly for developing countries. The campaign reflects a broader movement towards achieving sustainable development goals through robust and inclusive financial frameworks. 

Following this directive, the UN Secretary-General engaged in consultations and released a report in September 2023. In Dec 2023, the general assembly adopted Resolution 78/2301 which among other things outlined the subsequent procedural steps. UN member states have implemented the recommended procedural steps, setting up an adhoc committee, convening an organizational session, convening the first substantive session and starting the process of developing the TORs to guide the process of developing the text of the UN Tax Convention. The Bureau of the Ad Hoc intergovernmental committee comprises 4 member states, Egypt, Kenya, Morocco and Ghana, representing Africa 

The report from the process of developing the ToRs is due for submission at the next UN General Assembly in September 2024, and the negotiations for the content of the convention are due to start in 2025.  

Nevertheless, the battle is not over. Within the UN, the countries of the Global North continue to show that they are unwilling to relinquish their dominant position of rule-makers.  

African countries will have to join forces to resist the harmful reforms of the OECD.   

African nations face a significant challenge with the recent OECD two-pillar solution designed to address the taxation of multinational companies. The two-pillar solution aims to set international rules for taxing the digital economy (Pillar 1) and establish a global minimum tax rate of 15% (Pillar 2). While these reforms are presented as mechanisms to improve global tax fairness, their implementation poses serious risks to the fiscal sovereignty and economic stability of developing countries. 

Pillar 1 on the taxation of the Digital Economy requires countries to forgo unilateral digital services taxes. For many African nations, these taxes are crucial revenue sources necessary to meet public spending and development goals. Relinquishing the ability to tax digital services unilaterally is projected to diminish the fiscal capacity of African governments, undermining their ability to fulfill socio-economic rights and finance public services. 

Pillar 2, which introduces an effective Global Minimum Tax rate of 15% is criticized for being too low to benefit developing countries effectively. It may fail to generate substantial revenue and could lead to a revenue shift favoring developed nations. This pillar might exacerbate the global "race to the bottom," where countries competitively lower their tax rates to attract investment, further reducing potential tax revenues in Africa. 

Despite the potential adverse effects, several African countries, including South Africa, Zimbabwe, Kenya, Tunisia, Morocco, Egypt, and Mauritania, are in various stages of implementing the OECD rules, such as the domestic minimum top-up tax. This move threatens to solidify a tax regime that may not align with the developmental needs of the continent.