Digital Tax Administration, Compliance Costs, and Revenue Mobilization in Emerging African Economies

Abstract

Research Problem: The proliferation of digital tax platforms across emerging African economies is designed to optimize non-oil revenue mobilization, reduce leakages, and expand the formal fiscal net. However, empirical questions remain regarding the compliance costs imposed on small and micro-enterprises (SMEs).

Methodology: This study employs an unbalanced panel dataset of 12 Sub-Saharan African economies from 2014 to 2024 using a Generalized Method of Moments (System-GMM) econometric framework paired with structured enterprise-level surveys in Nigeria.

Key Findings: Empirical results reveal that a 10% increase in digital tax platform integration leads to a 2.48% increase in direct tax revenue mobilization, primarily driven by automated withholding and electronic filing verification.

Contribution to Knowledge: The study provides an actionable policy framework balancing digital fiscal enforcement with simplified taxpayer interfaces in African markets.