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Obstacles to progress

Realities

Capital gains tax could be an important source of revenue for many developing countries. But tax

treaties frequently create possibilities for avoidance by multinational investors.
Tax treaties, especially those with low-tax jurisdictions such as the Netherlands and Mauritius,
create significant risks for tax avoidance. Domestic rules may not be enough to prevent this, but

developing countries' tax treaties rarely contain specific or general anti-abuse rules. “
"Tax treaties in Sub-Saharan Africa - A critical review" 211
Tax Justice Network – Africa

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Senegal nixes 'unbalanced' tax treaty with Mauritius
“ One of West Africa's largest economies has torn up its agreement with Mauritius as debate
rages over the tax haven's impact on developing countries.

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Senegal alleged that the agreement, signed in 2004, had cost the West African nation $257

million in lost tax revenue over 17 years . “
"Senegal Nixes 'Unbalanced' Tax Treaty with Mauritius." 212
The International Consortium of Investigative Journalists (ICIJ)
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Zambia becomes second nation to tear up Mauritius tax deal
“ Zambia will now try to estimate how much revenue was lost under its tax treaty with

Mauritius, which one official described as "not balanced or fair."
"Zambia Becomes Second Nation to Tear up Mauritius Tax Deal," 213
The International Consortium of Investigative Journalists (ICIJ)

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High Spending requirements on Key Infrastructure

Infrastructure Needs in Africa's Developing Countries
“ Such infrastructure that had been developed during colonial times was simply to meet the
extraction policies of the colonial powers. And that varied according to how the colonial power

views each colony's economy (e.g. 'plantation', 'settler' or 'peasant')
One of the most pressing challenges African states faced at Independence was their lack of
infrastructure 19

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Imperial roads and railways were almost always intended to facilitate the export of raw

materials. Many, like the Ugandan Railroad, ran straight to the coastline.
These new countries also lacked the manufacturing infrastructure to add value to their raw

materials