Africa Advances Fiscalization Measures in 2025

At the African Tax Administration Forum (ATAF) annual meeting in 2024 in Kigali, Mr. Logan Wort, Executive Secretary, revealed that “Africa loses approximately $50 billion each year to tax evasion“.

This issue has been recognized for years, and many African countries have actively worked to combat tax fraud through fiscalization measures. Some were global pioneers, introducing fiscalization as early as the beginning of the 21st century, among them Kenya, Ethiopia, and Rwanda. Their example was later followed by Tanzania, Zambia, Uganda, and Mozambique. Over time, several of these countries have modernized their initial fiscalization systems to align with evolving technological and regulatory standards.

During this year, 2025, several new countries have joined fiscalization:

The Democratic Republic of Congo

During an awareness-raising event held on July 29, 2025, in Kinshasa, the Minister of Finance, Doudou Fwamba, announced the start of the nationwide rollout of fiscalization. The preparations, which included the pilot phase, had lasted several years prior. The basis of the fiscalization model adopted is a hardware-based solution consisting of control modules (MCF) that the taxpayer can obtain free of charge, and fiscal devices (UF) that create and print fiscal invoices. These devices are intended for the offline mode of operation (in case of no Internet connection). Taxpayers can use Virtual e-UF and e-MCF for a good-quality and permanent internet connection that transmits fiscal data to the tax administration’s server in real time.

Since July, activities have intensified to meet the December 1, 2025 deadline, when full fiscalization must be achieved. The primary focus has been on accrediting fiscal devices that comply with legal requirements and technical specifications, ensuring taxpayers have a wider selection of devices tailored to their needs.

Republic of Côte d’Ivoire (Ivory Coast)

On July 21, 2025, in Abidjan, the General Directorate of Taxes (DGI) launched the Standardized Electronic Invoicing (FNE) to fight tax fraud in order to increase domestic revenue. DGI had previously begun fiscalization in 2015 and launched intensive preparations in 2020, continuing them until 2025.

The implementation of the FNE is based on three procedures:

• The standard procedure entails generating the standardized electronic invoice from the FNE platform’s invoicing module and the FNE mobile application;
• The API interface procedure is available for companies with their own invoicing software. These companies can interface their invoicing software with the FNE platform via a dedicated API, and
• The procedure using Electronic Standardized Receipt Issuance Terminals (TERNE), for small and micro-enterprises subject to use as cash registers.

Republic of the Gambia

In June 2025, the Minister of Finance and the Gambia Revenue Authority (GRA) announced the launch of an electronic invoicing (e-invoicing) project. The digital invoicing system will enable real-time monitoring of sales data, drastically reducing under-declaration and tax evasion by providing the GRA with immediate access to verifiable transaction records.

The initiative follows a comprehensive due diligence visit by GRA officials to Côte d’Ivoire to study their tax administration systems and ensure the new solution meets legal, technical, and functional requirements suited to Gambia’s needs.

Republic of Burundi

The Burundi Revenue Authority (OBR) officially announced a decision mandating the use of electronic invoicing machines for businesses on April 11, 2025. The OBR added that these machines, which cost 1,500,000 (438 EUR) Burundian francs (FBu), are inaccessible to small businesses.

The fiscalization system is based on the MFE (Electronic Billing Machine), which, whether physical or virtual, must generate, archive, and transmit fiscal invoices to the EBMS, hosted on the Tax Administration’s server. Each MFE must comply with the technical and functional requirements verified by OBR.

Burkina Faso

Since January 1, 2025, certified electronic invoicing has been in effect in Burkina Faso, as mandated by the 2025 Finance Law. A press release from the Director General of Taxes, Eliane Djiguemdé, dated February 24, 2025, invites invoicing software providers and companies using their own invoicing software to register in large numbers for this online meeting organized specifically for them. This meeting will allow them to ensure that their solutions comply with the new electronic certification requirements.

The new certified electronic invoicing replaces standardized invoices with “sticker” stamps, which is a significant step towards fiscal modernization in Burkina Faso for greater transparency. The country approved the amendments on October 17, 2025, and they will come into effect on a date that the Minister will appoint through an Order published in the Gazette.

Republic of Botswana

The Value Added Tax (Amendment) Act, 2025, published in the Government Gazette on October 31, 2025, introduces significant changes to the VAT framework. Key amendments include:

• New definitions for invoice, taxable supply, Electronic Fiscal Device, Fiscal Receipt, and remote service;
• Updated VAT provisions and rules for reverse-charged supplies and remote services;
• Mandatory use of fiscal devices;
• Requirements for VAT representatives;
• Stricter penalties for non-compliance.

These updates are expected to significantly impact businesses and individuals involved in VAT-related activities in Botswana, ensuring a more efficient and transparent VAT system.

Diversity in the fiscalization methodologies

There is a noticeable diversity in the methodology by which various countries in Africa achieve fiscalization.

The hardware-based fiscalization model remains dominant. Taxpayers must purchase specialized fiscal devices, which serve as the core component for generating fiscal invoices, archiving them, and transmitting reports to the Tax Administration’s central server. However, there is a limited number of manufacturers producing these devices. Market entry is often restricted by quotas, requiring an initial quantity of devices to ensure adequate support.

This creates challenges: manufacturers show little interest, particularly during the initial phase when rapid implementation is critical. A slow start delays the entire process, leading to stagnation. Limited manufacturer participation drives up device prices, which in turn generates resistance among small taxpayers.

To address the high cost of fiscal devices, some countries have introduced free online software solutions (Web POS) hosted on the Tax Administration’s central platform. While this approach reduces hardware expenses, it relies entirely on a stable internet connection, which remains limited in many African countries. As a result, coverage by this fiscalization model affects only a small number of taxpayers.

Today, some countries aim to adopt the latest global trend, e-invoicing, which primarily covers the B2B sector. E-invoicing operates online but does not require a constant network connection; the system issues invoices through the network, and an intermediary of the Tax Administration clears them.

However, the black market still dominates in Africa at the B2C level, where issuing and controlling invoices remains a challenge. This issue cannot be overlooked; in fact, it must be emphasized because B2C transactions involve daily interactions with citizens. Public awareness and enforcement are essential to ensure that the public recognizes paying taxes as a civic duty. Mandatory issuance of invoices for all taxable goods and services is critical for the proper functioning of a country.

Harmonizing tax regulations, a priority

Africa is opening up to the world. Countries have become independent; they communicate with each other and with the world. The trend of exchange of goods and services in the cross-border regime is growing, which is why the question of who pays taxes, to whom, and where should not be ignored. Therefore, it is necessary to harmonize tax regulations and the tools that can monitor these tax activities.

Zambia, for example, in 2024 introduced new regulations in the VAT Act (Cross Border Electronic Services), which regulate cross-border taxation in Zambia.

Tax Administrations often request the inclusion of stock control in their efforts to combat tax fraud. Implementing this requirement is challenging because it demands extensive organizational preparation at the jurisdictional level, such as standardizing item tracking for sales and services. Recording stock control at the Tax Administration level further complicates fiscalization. Many African countries already struggle to meet basic requirements, including enrolling taxpayers, attracting manufacturers of fiscalization tools, and reducing costs.

We should also not forget that due to the poor infrastructure in Africa, governments have deployed special types of mobile money payments (M-Pesa, MTN Money).

Conclusion

Despite the many issues that impede this process, such as poor infrastructure, extensive control built from the ground-up, as well as jurisdictional complications, African countries are on a solid path towards introducing fiscalization across the continent. It is important to note that fiscalization is a complex process that requires thorough legal preparation, disciplined participation from all stakeholders, carefully planned implementation, strict adherence to deadlines, and continuous activity without interruption. To ensure success, authorities should avoid complicating the process at the beginning and focus on involving as many taxpayers as possible in the shortest time frame. With that in mind, tax authorities must learn from the experiences of neighboring countries and best global practices, and prioritize solutions that other jurisdictions have proven to be effective and fast to implement.