- From online gambling to cryptocurrency and the digital economy, new reports show where African governments could unlock billions in additional revenue without raising traditional taxes.
Africa’s Untapped Tax Base. As African governments continue searching for sustainable ways to finance infrastructure, healthcare, education and economic development, one message is becoming increasingly clear: the continent’s next wave of tax revenue may not come from increasing tax rates, it may come from taxing emerging sectors more effectively.
Over the past few months, several reputable reports and policy developments have highlighted industries where governments are either leaving significant revenue on the table or beginning to strengthen tax administration. Together, they paint a picture of a continent whose tax systems are evolving to keep pace with digital transformation, technological innovation and changing consumer behaviour.
From Morocco’s largely untaxed online gambling market to South Africa’s tightening cryptocurrency rules, these developments illustrate how governments are increasingly looking beyond traditional sources of taxation to broaden their tax base.
Below are some of the most notable examples.
Morocco: An Untaxed Online Gambling Market Worth Billions
Perhaps one of the most striking findings comes from the recently released Online Gaming 2024–2025: Africa report by Gaming Compliance International (GCI).
The report estimates that Africa’s online gambling industry generated approximately US$23 billion in gross gaming revenue during 2025, yet only about 23% of that activity occurred within regulated markets. The remaining 77% flowed through unregulated operators that contributed little or nothing in taxes to African governments.
For Morocco, the findings are even more revealing.
According to the report, Morocco’s online gambling market remains entirely unregulated, meaning licensed operators contribute virtually no tax revenue despite growing consumer participation. North Africa recorded the weakest regulatory performance on the continent, with almost all online gambling activity taking place outside formal oversight.
Beyond the immediate loss of gaming taxes, governments also forgo licensing fees, employment opportunities, compliance obligations and wider economic benefits associated with a regulated market.
As online betting continues to expand across Africa, experts believe countries with limited regulatory frameworks may increasingly face pressure to modernise their gambling legislation and taxation systems.
South Africa: Bringing Cryptocurrency Fully Into the Tax Net
South Africa has taken a different approach by focusing on an emerging industry that is already generating significant economic activity.
Earlier this year, the South African Revenue Service (SARS) released draft guidance explaining how cryptocurrencies should be taxed under existing tax legislation.
Rather than creating an entirely new crypto tax, SARS clarified that digital assets are generally treated as intangible assets and that most transactions, including selling, swapping cryptocurrencies or using them to purchase goods and services, may trigger income tax or capital gains tax depending on the taxpayer’s circumstances.
The draft also emphasises that taxpayer intention remains critical in determining whether crypto activities constitute trading or long-term investment.
With an estimated 5.8 million South Africans owning digital assets, the guidance signals a broader effort to improve compliance in one of Africa’s fastest-growing digital financial markets.
Rwanda: Closing the Digital VAT Gap
Rwanda is also expanding its tax base, this time by targeting digital services consumed within its borders.
The country recently introduced one of Africa’s most comprehensive digital VAT frameworks, bringing online services such as streaming subscriptions, cloud computing, digital advertising, online education and software services within the scope of its 18% Value Added Tax regime.
Perhaps more significantly, Rwanda introduced an innovative enforcement mechanism that allows banks and payment service providers to withhold VAT where foreign digital suppliers fail to register with the Rwanda Revenue Authority.
The move reflects a growing recognition that digital consumption has become an increasingly important source of economic activity that should contribute fairly to domestic tax revenues.
SEE ALSO: Morocco Deepens Agricultural Tax Reforms to Boost Investment, Protect Small Farmers
Nigeria: Expanding the Tax Base Through Digital Administration
Nigeria’s recent tax reforms demonstrate that improving tax collection does not necessarily require introducing new taxes.
Through digital tax administration, electronic invoicing, expanded taxpayer registration and the establishment of the Nigeria Revenue Service, authorities have significantly increased domestic revenue mobilisation while seeking to improve compliance.
The country’s recent reforms highlight how administrative efficiency, digitalisation and broader tax coverage can produce substantial revenue gains without relying solely on higher tax rates.
Many African tax administrations are now adopting similar digital-first strategies to reduce leakages and improve voluntary compliance.
Kenya: Digital Compliance Over New Taxes
Kenya continues to strengthen tax administration through greater digital integration rather than broad tax increases.
Recent Kenya Revenue Authority initiatives have focused on improving VAT compliance through automated integration between customs systems and electronic tax platforms, reducing opportunities for incorrect declarations and improving verification of export transactions.
The approach reflects a broader shift across Africa where technology is increasingly becoming as important as tax policy itself in improving revenue collection.
Africa Tax Review Analysis
Recent developments across the continent suggest that Africa’s next major tax opportunity lies not in increasing existing tax rates but in bringing rapidly expanding sectors into the formal tax system.
Whether through regulating online gambling, clarifying cryptocurrency taxation, taxing digital services or strengthening digital tax administration, governments are gradually adapting their tax systems to match today’s economy rather than yesterday’s.
The challenge now is implementation. Modern tax laws alone will not generate revenue without effective enforcement, digital infrastructure and cross-border cooperation.
As digital economies continue to grow, countries that successfully combine innovation-friendly regulation with efficient tax administration are likely to broaden their revenue base, reduce leakages and strengthen long-term fiscal sustainability, without placing additional pressure on traditional taxpayers.
