Revenue Mobilisation in the wake of Cyclone IDAI

Posted on 22 March, 2019 by Administrator

The catastrophic cyclone IDAI that severely battered Mozambique, Malawi and Zimbabwe in March 2019 has brought to the fore the lack of administrative capacity by the three Southern African Countries to mobilise adequate revenues at a national and local government level. The apparent lack of preparedness post cyclone activity suggests a more pragmatic approach in how Revenue mobilisation can be enhanced by not only the three Southern African State, but the rest of Sub-Saharan Africa.

This region is prone to such weather related calamities which can have catastrophic consequences as demonstrated periodically from storms to hunger. It is against this background that these countries must start to mobilise the use of enhanced technology to increase their revenue bases and be more innovative in how they collect tax. This will in time allow them to reduce the debt over hang, expand productive sector capability and capacity and most importantly thereby broadening their tax bases.

Only after addressing the efficiencies required in revenue collection in the 21^stCentury will they start having excess liquidity to invest in appropriate technology and infrastructure to ameliorate these calamities that periodically visit the region. The state must of necessity now be able to account for ALLrevenue accruing to it at whatever level and also be in position to monitor expenditure to reduce waste. Most importantly these countries must now setup Sovereign Wealth Funds and ensure that there is meaningful investment and savings to sustain future generations.

The technology now being developed for living in the 21^stCentury must be imbedded in the school and college curriculum to pull the countries out of grinding poverty. Therefore the bulk of the resources should be focused on a top notch education system and health delivery system to look after these human resources. Farming methods must be Information Communication Technology (ICT) enabled and the resultant markets must be also e-enabled both locally and globally. The world is short of healthy food and yet Africa has the best land and climate to provide that at a premium right now.

A serious mind set is required by all involved from the politicians, authorities and technocrats to see such improvements in the shortest possible time. Otherwise our countries will be decimated and continue to become destitute.