Financing for Development

FINANCING FOR DEVELOPMENT

KEY RESULT AREA: INCLUSIVE AND ACCOUNTABLE REVENUE MOBILISATION AND UTILISATION

Sustainable development in Africa cannot be achieved without fair, inclusive, and accountable financing systems. Yet the global financial architecture remains inequitable, debt-driven, and misaligned with the needs of the Global South. African countries continue to lose billions annually through illicit financial flows (IFFs), unfair tax rules, and expensive debt, while shrinking fiscal space undermines investments in health, education, climate resilience, and industrialization.

At SEATINI, we work to transform financing systems at national, regional, continental, and global levels so they advance fiscal sovereignty, equity, and structural transformation rather than dependency.

Our Thematic Objective

To advance equitable, transparent, and accountable fiscal policies and practices that strengthen domestic resource mobilization, ensure fair allocation of public resources, and promote efficient and impactful utilization for development.

Expected Outcome

Inclusive, transparent, accountable, and equitable fiscal policies and practices are adopted and implemented.

Program Areas

2.1 Tax Justice & Domestic Resource Mobilization (DRM)

East Africa and many African countries collect far below their revenue potential. For example, Uganda’s tax-to-GDP ratio remains around 14%, below regional and national targets. Tax exemptions, weak regulation of multinational corporations, illicit financial flows (estimated at USD 1.5–2 billion annually), and regressive tax structures constrain fiscal space. Regionally and globally, unfair tax treaties, profit shifting, and limited African influence in global tax rule-setting further erode sovereignty.

What We Do

Research & Evidence Generation: Analyze tax incentives, illicit financial flows, extractives taxation, digital economy taxation, and tax harmonization within the EAC and under AfCFTA.

2.2 Local Revenue Mobilization & Civic Engagement

Local governments in Uganda generate only 5–15% of their budgets from own-source revenues, relying heavily on central government transfers. Weak property tax systems, limited digital capacity, political interference, and low citizen trust constrain local revenue potential and service delivery.

What We Do

Advocate for strengthened decentralization and transparent local revenue systems.

Support digitized revenue management tools to reduce leakages.

Build capacity of local governments, CSOs, and community groups to monitor budgets and expenditures.

Promote civic engagement to strengthen the link between taxation and service delivery.

2.3 Debt Justice & Responsible Borrowing

Uganda’s public debt has risen significantly, with debt servicing consuming a substantial share of domestic revenue. Across Africa, rising debt burdens, expensive non-concessional loans, weak restructuring mechanisms, and inequitable global debt governance frameworks constrain development.

What We Do

Conduct research on debt sustainability, resource-backed loans, debt-for-nature swaps, and austerity impacts.

Advocate for transparent and gender-responsive debt management frameworks.

Strengthen parliamentary oversight and civil society engagement in borrowing processes.

Promote African-led reforms of the global debt architecture and fair credit rating systems.

2.4 Aid Effectiveness & Accountability

Official Development Assistance (ODA) is declining in real terms and increasingly redirected toward humanitarian and in-donor refugee costs. In East Africa aid remains significant but is often off-budget, limiting transparency and alignment with national development priorities.

What We Do

Advocate for transparent aid governance and public access to aid data.

Track aid flows and assess their developmental and gender impacts.

Build capacity of parliamentarians and civil society to monitor aid effectiveness.

Engage regional and global platforms to reposition aid as complementary to domestic resource mobilization not a substitute.