As the 2025 G20 Summit in Johannesburg approaches, Africa is sharpening its call for action on development financing. With South Africa assuming the G20 Presidency from December 2024 to November 2025, the timing is critical.
Only five years remain before the 2030 deadline for the United Nations Sustainable Development Goals (SDGs), and the financing gap continues to widen.
The Fourth International Conference on Financing for Development (FFD4), held in 2025, underscored the urgency.
The global annual financing shortfall to achieve the SDGs is now estimated at $4 trillion. Africa’s share of this gap stands at $1.7 trillion, or 40 per cent of the total.
This deficit threatens progress on poverty reduction, health, education, and infrastructure.
Domestic Resource Mobilisation (DRM) has emerged as the central strategy for addressing this challenge. By strengthening tax and revenue systems, African nations aim to reduce dependence on volatile external financing.
The African Tax Administration Forum (ATAF), a taskforce member of the G20 Development Working Group (DWG), is leading advocacy on this front. Its new initiative, the Revenue Action for Development in Africa (RADA), seeks to build fiscal resilience and secure homegrown funding for development priorities.
SDGs at a crossroads
The world is off track to meet the SDGs. A 2024 UN report showed that only 17 per cent of the 135 measurable targets are on course to be achieved by 2030. The remainder are stalling or regressing. Africa, in particular, continues to face food insecurity, weak infrastructure, and limited access to basic services.
Financing is the key bottleneck. The African Development Bank reports that the funding gap has grown from $2.5 trillion in 2015 to $4 trillion in 2024. With official development assistance stagnating and debt burdens rising, the scope for external borrowing is narrowing. Africa’s average tax-to-GDP ratio remains below 15 per cent, the minimum considered sustainable for development. Raising this ratio is critical. A one per cent increase could yield an additional $35 billion annually, adding up to $350 billion by 2030.
For policymakers, the conclusion is clear: without stronger DRM, the continent cannot meet the SDGs.
Confronting illicit financial flows
One of the greatest obstacles to DRM is the scale of illicit financial flows (IFFs). Africa loses billions of dollars annually through tax evasion, trade mispricing, mis-invoicing, and corruption. These leakages undermine revenue mobilisation, weaken fiscal policy, and exacerbate inequality.
ATAF has pressed the G20 to treat IFFs as a core development issue. The DWG discussions under South Africa’s presidency highlighted practical steps: reforming tax and trade policies, modernising customs systems, expanding the tax base, and leveraging digital tools for compliance. Transparency measures such as automatic exchange of tax information and beneficial ownership disclosure are vital to curb financial leakages.
The 2025 Skukuza Development Ministerial Declaration marked progress. G20 members adopted a Call to Action on combating IFFs, endorsing voluntary high-level principles for cooperation. This was a significant milestone for the South African Presidency. “What we witnessed in Skukuza was more than a meeting—it was a recommitment to global solidarity,” said Josephilda Nhlapo-Hlope, Chair of the G20 DWG. “The Global South is shaping the future of multilateral development cooperation.”
For Africa, stemming IFFs could unlock resources equal to or greater than external aid flows. Tackling the problem is thus a strategic priority.
Linking DRM to gender equality
DRM reforms are not only about revenue; they also have distributional consequences. Well-designed taxation systems can support inclusive growth, reduce inequality, and promote gender equality—an essential element of the SDGs.
Women make up more than half of Africa’s population yet remain disadvantaged in the labour market.
On average, women earn 39 per cent less than men. Within tax administrations, representation is uneven. In 2022, women accounted for 40 per cent of the workforce but only 27 per cent of executives. By 2024, only eight of ATAF’s 44 member states had female Commissioner Generals.
To address this, ATAF launched the African Women in Tax Network (AWITN). The initiative promotes gender-sensitive tax systems, supports women’s leadership in tax administration, and advances gender-responsive reporting. Through AWITN, ATAF also contributes to the G20 Empowerment of Women Working Group (EWWG). The group’s priorities include closing pay gaps, expanding women’s labour participation, and strengthening financial inclusion.
Tax policy can also reduce the burden of unpaid care work, which disproportionately falls on women. Greater domestic revenue could fund public investments in health, education, and social protection, enabling women to participate more fully in the economy.
From commitments to implementation
The Skukuza Declaration and the Call to Action on IFFs represent progress, but implementation will be the real test. Africa’s message to the G20 is clear: commitments must translate into measurable outcomes. The focus now shifts to drafting roadmaps, monitoring compliance, and ensuring that DRM reforms are embedded in national policies.
ATAF has pledged to remain an active partner in shaping these processes. Through RADA, it will help African governments modernise tax systems, close loopholes, and boost compliance. At the G20 level, ATAF will contribute to finalising principles on IFFs and ensuring that development financing remains a central priority alongside traditional financial concerns.
The bigger picture
For Africa, the stakes could not be higher. Domestic revenue is the most reliable and sustainable source of development financing. External aid and debt may provide temporary relief, but only stronger domestic systems can ensure fiscal sovereignty. Effective DRM would allow Africa to fund its own infrastructure, social services, and climate adaptation—while reducing dependence on donors and lenders.
The G20 Presidency offers South Africa and the continent an opportunity to influence global debates at a critical moment. By linking DRM to IFFs, gender equality, and social protection, Africa is presenting a holistic agenda. The goal is not only to raise revenue but also to create fairer, more resilient, and more inclusive economies.
The road to Johannesburg 2025 is more than a countdown to another summit. It is a test of whether the G20 can turn its rhetoric on financing for development into real change. Africa has placed domestic resource mobilisation at the centre of this agenda, with ATAF championing the case for sustainable financing.
The choice is clear. Either the world supports Africa’s efforts to mobilise its own resources, or the SDGs risk becoming another set of missed targets. For Africa, the task is urgent but not impossible. With stronger tax systems, action against IFFs, and gender-responsive policies, the continent can begin to close its financing gap. The time for promises has passed. What matters now is delivery.
