Africa has the potential to generate hundreds of billions of dollars in additional revenue by improving its tax system, strengthening institutions and making better use of its financial resources, according to the African Development Bank Group (AfDB).
Speaking at the African Economic Conference 2026 in Abidjan, Côte d’Ivoire, the AfDB’s Vice President for Economic Governance and Knowledge Management and Chief Economist, Professor Kevin Chika Urama, said the continent has enough untapped resources to support long-term economic growth if governments take the right steps.
The conference, themed “Strengthening Africa’s Financial Agency in a Multipolar World,” brought together policymakers, economists and development experts to discuss ways to build stronger African economies.
Professor Urama explained that Africa has several revenue opportunities that remain underutilised. He pointed to pension funds as one of the biggest sources of long-term investment, estimating that the continent could add about $500 billion between 2026 and 2027 if countries adopt global best practices.
He also highlighted the economic value of Africa’s natural resources, saying proper valuation of natural capital could unlock about $66.1 billion. In addition, bringing more businesses from the informal sector into the formal economy could generate another $125 billion in revenue.
Despite these opportunities, Urama stressed that African governments must improve transparency, strengthen public institutions and tackle corruption to achieve meaningful progress. He said reducing financial leakages and ensuring public funds are managed responsibly would help attract more investment and increase public confidence.
According to him, governments should also focus on improving public investment, reducing unemployment and poverty, strengthening the relationship between citizens and the government, and investing more in education and skills development. These measures, he said, would support long-term economic transformation across the continent.
Professor Urama also called for simpler and more efficient tax systems. He said many Africans are willing to pay taxes if they can clearly see how the money is being used to improve public services.
He explained that when governments manage public funds responsibly and provide visible benefits such as better healthcare, education, infrastructure and other essential services, citizens are more likely to comply with tax obligations voluntarily.
Urama added that improving tax administration without raising tax rates could significantly increase government revenue. According to AfDB estimates, Africa could generate about $469.4 billion in additional tax revenue and another $311.4 billion from non-tax sources. Combined, this represents more than $780 billion that could be mobilised to support development across the continent.
Also speaking at the conference, President of the African Development Bank Group, Dr. Sidi Ould Tah, urged African countries to move beyond dependence on external support and build stronger, more competitive economies.
He said Africa should focus on becoming more resilient, influential and economically independent, adding that the continent’s global standing will depend on its ability to negotiate from a position of strength and work together to achieve common goals.
The Chief Economist for Africa at the United Nations Development Programme (UNDP), Raymond Gilpin, also described the conference as an important platform for finding practical solutions to Africa’s financial and economic challenges.
Participants agreed that stronger institutions, better financial management and improved cooperation among African nations will be essential for unlocking the continent’s vast economic potential and achieving sustainable development.
