ADDIS ABABA, Ethiopia: Ethiopia has begun the process of joining the African Tax Administration Forum (ATAF) as the government seeks stronger tools to increase domestic revenue, tackle cross border tax avoidance and improve tax administration.
Senior officials from Ethiopia’s Ministry of Revenues and ATAF held consultations in Addis Ababa on September 7, 2026, after Ethiopia formally expressed interest in joining the continental organisation.
Technical teams are now working through the legal, administrative and policy requirements needed for Ethiopia to become a member.
Membership would bring Ethiopia into one of Africa’s main platforms for cooperation between national tax authorities. It would also provide access to specialised expertise covering transfer pricing, international taxation, digital tax administration, tax treaties and the auditing of multinational companies.
The move comes as Ethiopia faces increasing pressure to raise more revenue locally while limiting borrowing and meeting the rising costs of public services, debt obligations and economic reforms.
Despite a series of tax measures introduced over the years, government revenue remains low compared with the size of Ethiopia’s economy. Informal economic activity, weak enforcement, tax exemptions and illicit financial flows have continued to limit revenue collection.
Joining ATAF could give the Ministry of Revenues greater capacity to examine complex transactions involving multinational companies, particularly in telecommunications, mining, banking, manufacturing and other industries attracting growing foreign investment.
One of the key areas of concern is transfer pricing, where prices are set for transactions between related companies operating in different countries. Tax authorities across Africa have increasingly focused on the practice because it can allow taxable profits to be shifted away from countries where the economic activity takes place.
Ethiopia is also expected to benefit from support aimed at modernising tax audits, expanding electronic invoicing and making greater use of data to identify taxpayers who fail to comply with their obligations.
These capabilities are becoming increasingly important as digital payments, e commerce and cross border services grow faster than traditional tax administration systems.
ATAF membership would also give Ethiopia a formal role in African discussions on international tax rules. The issue has gained importance as African countries seek greater influence over where multinational corporations pay taxes and how revenue generated from the digital economy is distributed.
The planned accession comes as implementation of the African Continental Free Trade Area continues to expand.
Greater regional trade could eventually broaden Ethiopia’s tax base, but lower tariffs and more complicated cross border transactions could also reduce customs revenue and create additional challenges involving double taxation, profit shifting and disputes over which country has the right to tax particular economic activities.
Ethiopian officials said the remaining requirements for accession are being finalised.
Once the process is completed, Ethiopia would be able to sign the ATAF Agreement, participate fully in the organisation’s programmes and contribute to continental discussions on tax policy.
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