SIDE EVENT

Update on the progress towards the United Nations Framework Convention on International TAX Convention: Challenges and Opportunities

Date: Thursday 3 July 2025

Venue: FIBES Sevilla Exhibition and Conference Centre— Room Side Event 3

Time: 8:30 AM-10:00 AM

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H.E. Mr. Moses Vilakati, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment & Ag. Commissioner for Economic Development, Trade, Tourism, Industry and Minerals

Delivered by

Dr. Patrick Ndzana Olomo, Ag. Director Economic Development Integration and Trade and Head of Economic Policy and Sustainable Development.

Distinguished Guests, Panelists, Partners, and Colleagues,

Good morning.

It is with profound honour to address you today on behalf of the African Union Commission at this critical moment in the global movement for fair, inclusive, and development-oriented international tax cooperation.

The reform of the global financial architecture, of which international tax cooperation is a cornerstone, and not simply a matter of technical alignment or institutional negotiation.

For us in Africa, it is a matter of justice, sovereignty, and sustainable development. It speaks directly to our collective ability to mobilize domestic resources, combat illicit financial flows, and finance our development priorities as articulated in Agenda 2063, including the Africa Continental Free Trade Area (AfCFTA), and the Programme for Infrastructure Development in Africa (PIDA).

For too long, the global tax system has operated on a foundation that systematically excludes the voices and needs of developing countries. The frameworks shaped predominantly at the Organisation for Economic Co-operation and Development (OECD) have failed to meaningfully address the longstanding issues of profit shifting, tax evasion, and the unfair allocation of taxing rights, particularly where African economies are concerned.

These challenges have fueled illicit financial flows, costing our continent an estimated $88 billion annually and weakened our fiscal space to invest in health, education, infrastructure, and climate resilience.

The African Union, driven by a strong mandate from its Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration, and in close collaboration with African Tax Administration Forum (ATAF), United Nations Economic Commission for Africa (UNECA) and Tax Justice Network Africa (TJNA), has taken a clear and consistent stand: the time has come for a more inclusive, transparent, and equitable global tax framework under the auspices of the United Nations.

In this regard, we welcome the progress made through the recent UN Resolutions on International Tax Cooperation, and the establishment of the Intergovernmental Negotiating Committee (INC) to develop a UN Framework Convention on International Tax Cooperation. The advancement of this process, including the early drafting of two protocols, marks a turning point, an opportunity to build a system that reflects the priorities and realities of developing nations, particularly in Africa.

Yet, as we gather here today, we are reminded that this journey is far from over.

The road ahead will demand political will, technical expertise, and above all, unwavering unity. African countries must continue to engage rigorously across workstreams to ensure that the Convention addresses our key concerns: curbing IFFs, protecting our taxing rights, and enhancing domestic resource mobilization. It is our shared responsibility to secure a seat at the table not just as observers, but as architects of the new rules that will govern global taxation for decades to come.

This meeting serves not only as an opportunity to assess progress but to chart the next steps forward. We must identify the pitfalls that threaten to dilute our gains and collectively develop strategies to ensure Africa's voice remains central in these negotiations.

As I conclude, I urge all stakeholders present, Member States, institutions, development partners and civil society organisations to approach this dialogue with ambition, urgency, and solidarity. Let us reaffirm our shared commitment to reforming the global tax system in a way that leaves no nation behind.

Thank you.