Taxation and management of natural resources in Africa
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Taxation and management of natural resources in Africa

If there is any reading material that offers a comprehensive examination of the fundamental concepts and principles crucial to the taxation and management of natural resources in Africa, then it is the book with the title, Taxation and Management of Natural Resources in Africa.

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 Specifically tailored to offer solutions to the unique challenges faced by developing African countries, it delves into the key instruments that comprise a resource tax policy, providing invaluable insights into the tax reforms necessary to maximise economic rent for African nations. 

Written by 33 experts, editors and contributors in the field, this book explores the potential application of effective revenue management principles by African governments to achieve desired developmental outcomes.  

The foreword is by Prof. Alex Dontoh, Professor of Accounting, Stern School of Business, New York University, United States of America; Dr Mohammed Amin Adam, Minister of Finance; Edward

Apenteng Gyamerah, Commissioner Domestic Tax and Revenue Division, Ghana Revenue Authority, and Nafi Chinery, Africa Director, the Natural Resource Governance Institute. 

It covers a wide range of topics, in its 18 chapters. They include socio-political risks, ethical dilemmas, accountability and transparency, resource rent and capital gains taxes, tax administration and reforms, taxation of oil and gas revenue, environmental taxation, globalisation's impact, and the promotion of inclusive development.   

Other topics covered in the book include the roles of environmental tax and public participation to ensure effective and sustainable management of natural resources in Africa;  Foreign direct investment and tax incentives in the extractive sector: The good, the bad and the ugly; and Economics of peace: Can extraction of oil and gas lead to sustainable peace?  

The rest are Corruption, taxation of natural resources and sustainable development in Africa; The impact of natural resource depletion on climate change vulnerability and income inequalities in Africa, and The future of natural resource management and policy in Africa. 

Designed for scholars, tax professionals, and individuals interested in natural resources management and revenue mobilisation strategy in Africa, this book bridges the gap between theory and practice.  

It provides valuable insights and recommendations for sustainable and responsible management of Africa's rich natural resources. 

Introduction 

In the introduction, an overview of the management and tax policy of natural resources is discussed by the three main co-editors or authors, regarding how taxation and management of resources can drive inclusive growth in African countries.

It is significant to note that a profile of the three main authors of the book has been provided for the reader to appreciate the solid background of the authors who are behind the publication.

The co-editors are a Professor of Accounting and Finance at the University of Ghana Business School, Prof. Mohammed Amidu; Senior Lecturer at the University of Ghana School of Law and the University of Ghana Business School, Dr Abdallah Ali-Nakyea, and Financial Economist and Professor of Finance at the University of Ghana Business School, Dr Joshua Yindenaba Abor.  

They assessed how readers could gain valuable knowledge from leading experts in natural resource taxation and management in Africa.  

The co-editors also delved into the discovery of tax policy reforms to optimise economic rent from natural resources in Africa.        

Rent

Resource rent and capital gains taxes in Africa are some of the topics that have provoked discussions in the book. This chapter of the book is co-authored by Dr Abdallah Ali-Nakyea and Nasir Alfa Mohammed covering pages 133 up to 151.  

Resource rent and capital gains taxes are among the menu of fiscal instruments a resource-rich country may employ to derive its fair share of economic rents.   

The chapter makes useful recommendations to developing economies on how best to integrate resource rent and capital gains taxes into their fiscal regimes for the management of natural resources without compromising the optimal recovery of their natural resources. 

Taxation of oil, gas

Taxation of oil and gas revenue in African countries is yet another subject discussed in detail by Dr Ali-Nakyea and Mr Mohammed covering pages 153 up to 174.

The recognition of oil and gas as a predominant source of wealth in many developing countries is well-established in the literature.

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For good or bad, the revenues generated from oil and gas can have a huge impact on the economic development and prosperity of developing economies.  

This chapter reviews the practice and implications of different resource taxes, including royalties, corporate income tax, profit taxes, resource rent tax, and acquisition of equity on oil and gas exploration and development in developing countries.   

Questions of the relevance and suitability of the different tax instruments for the countries implementing them are explored, and recommendations are proffered for African countries. 

Foreword

The foreword, written by four distinguished personalities, is enough to tell readers that the book is a must-read for everybody.  

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A Professor of Accounting, Stern School of Business, New York University, United States of America, Prof. Alex Dontoh, described the book as offering “a comprehensive analysis of Africa’s complex natural resource governance challenges and opportunities. “The book, divided into three parts, delves into various facets of resource management,” he states.

The Minister of Finance, Dr Mohammed Amin Adam, for his part, said, “The authors have indeed displayed excellent knowledge of the intricacies and nuances policymakers face in designing policies around the various facets of the natural resources sector.” 

The Commissioner, Domestic Tax and Revenue Division of the Ghana Revenue Authority, Edward Apenteng Gyamerah, also said, “This book is timely, authoritative, and a must-read for anyone seeking to understand and navigate the intricate dynamics of natural resource governance and taxation in Africa.” 

The Africa Director of the Natural Resource Governance Institute, Nafi Chinery, indicated that the authors provided comprehensive insights that would serve as valuable guidance for policymakers and revenue institutions in Africa, enabling informed decision-making to optimise the benefits of natural resources.  

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To sum up, this book provides solutions to the complexities that surround Africa's inability to solve its poverty issues although it is endowed with rich natural resources. Indeed, it is a must-read for all segments of society and it provides figures and illustrations necessary for the understanding of the reader. It is a well-researched book to read. 

Co-Editors/Authors: Prof. Mohammed Amidu, Dr Abdallah Ali-Nakyea and Prof. Joshua Yindenaba Abor
Pages: 483
Publishers: Springer Nature Switzerland AG

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