Revenue Constraints on the Implementation of Sustainable Development Goals: COVID-19 Pandemic in Africa

The COVID-19 pandemic has negatively affected domestic revenue mobilization capacity of governments in Africa which significantly affected Sustainable Development Goals (SDGs) implementation trajectory. This chapter focused on examining the impact of the pandemic on sources of revenue more familiar for African states which are income taxes, customs duty, value added tax, toll gate fees, external finances and local government incomes. The chapter adopted a qualitative case study approach through documentary search of books, journal articles, government reports and working papers focusing on the implications of the pandemic on revenue mobilization and effects on SDGs. Moreover, cases of illicit financial flows, smuggling of goods, tax evasion and fiscal corruption due to COVID-19-related restrictions have contributed toward low revenue mobilization capacity of African countries. Owing to this, SDGs funding declined as evidenced by poor health service delivery (Goal 3), unequal access to education especially in rural isolated communities (Goal 4), and poor waste management and water reticulation services (Goal 6). These challenges have amplified poverty and inequality levels in these countries as well as reducing the quality of standard of living. The chapter findings indicate that, the success of smoothly implementing SDGs in African countries will largely depend on boosting their own domestic revenues. Following an in-depth analysis of the research findings, this chapter recommends governments to introduce tax reforms such as expanding their revenue base and there is need to improve transparency and accountability on revenue collection to reduce corruption and tax evasion. Conclusions can be drawn that the COVID-19 pandemic has worsened economic woes which has resulted in low productivity capacity and revenue loss in these African countries.