EA faces $160m forfeiture in tax revenues under AfCFTA but long-term future gains

A report says despite initial loss of revenues, open borders have better fruits to harvest.

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Four East African countries (Kenya, Rwanda, Tanzania and Uganda) face a potential loss of up to $160 million in tax revenues this year, the smaller penalty to pay for future bigger gains on open borders for goods and services.

Findings from the UN Economic Commission for Africa (ECA) suggest the pain will be short-lived, to be compensated by bigger gains on larger sales between African countries.