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New DFID program to support tax reform in Mozambique News

4 December, 2019

Cowater International is proud to have been selected to implement a new tax reform initiative in Mozambique. This project is part of a broader technical assistance programme titled Tax and Economic Governance, funded by the UK’s Department for International Development (DFID). This ambitious tax reform project is a 4.5 year (2020-2024) GBP 8 million (CAD 13.8 million) program which aims to support Mozambique’s government to raise its own revenues efficiently and equitably.

Tax policy and collection are critical to sustainable development; enabling governments to provide quality social services such as education and health to their population. The Mozambique Revenue Authority is already a notable success in the region, with taxation reaching 24% of GDP in 2017. However, this number has fallen in recent years. With Mozambique on the verge of a new economic boom, fuelled by new large natural gas projects, the Revenue Authority will need to increase its capacity to collect efficiently and equitably growing revenues.

Our DFID-funded project will support the Revenue Authority and Ministry of Finance to design and administer an equitable tax policy. As part of DFID’s and our commitment to gender equity, the initiative will provide support for greater gender sensitivity in policy making and tax collection. This project renews Cowater’s presence in Mozambique and confirms our role as a leading expert in revenue policy and administration in Sub-Saharan Africa.


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