Tax incentives and aggressive tax planning (ATP) are significant taxation issues of concern within Africa’s extractives industry and agribusiness sectors. This policy brief is based on the findings of four country case studies commissioned by Oxfam in Africa in 2023. The study analysed the costs and benefits of tax incentives and aggressive tax planning in Chad, Democratic Republic of Congo (DRC), Equatorial Guinea, and Nigeria to support evidence-based recommendations for policy reforms and advocacy for effective tax incentive frameworks in Africa.

The study finds that while tax incentives can attract foreign direct investment, stimulate economic growth in strategic sectors, promote technology transfer, job creation, and exports, they can have insignificant impacts on attracting Foreign Direct Investment (FDI) and other development indicators. Instead, harmful tax incentives have led to substantial revenue losses, economic inequality, and fiscal inefficiency in the four African countries.