Success in implementing Agenda 2063 and the Sustainable Development Goals depends largely on the availability and adequacy of resources. Africa realizes that industrialization is the way to go, as outlined in the two continental development plans, but it is inevitable that resources to fund these programs must be mobilized domestically. Domestic resource mobilization (DRM)1 was recognized as one of the six leading sources of finance for the Millennium Development Goals (MDGs), but many African countries did not fully achieve the MDGs due to overreliance on donor funding. One part of DRM is generating taxes and savings, which implies that governments and the private sector have key roles in this process. Specifically, the private sector should mobilize private savings, expand its productive investments, conduct responsible business by not engaging in tax avoidance and illicit financial flows, and ensuring corporate social responsibility. The 2015 Africa Capacity Report (ACR 2015) identifies the private sector as very important in partnering and cooperating with governments and other key stakeholders to maximize tax revenues and promote savings and investment. This policy brief puts forward possible interventions for the private sector to enhance domestic resource mobilization in Africa.
