Youth want trading blocs to pool funds to support recovery

With Covid-19 taking a toll on almost every country, youth leaders in the East African Community have asked government to solidify relations with other blocs such as Southern African Development Community (SADC) to pursue economic recovery. 

In a statement signed by Mr Allan Murangira, the Youth for Tax Justice Network team leader, said it was important that governments in different regional blocs pool resources to invest in critical youth dominated sectors with the view of lifting them out of the current challenges as well as building resilience.
 
“It is time we started being each other’s keeper. It is for this reason that member states of [trading blocs] should make provisions for public registry of companies of beneficial ownership law so as to tackle and expose corruption that facilitate illicit financial flows. Member states should also allocate and utilise public debt for the benefit of youth,” he said. 

Economies, across Africa have been exposed to a number of challenges, among which include funding gaps, especially in critical sectors of economies such as health, education and social security that are key in youth development. 
Therefore, Mr Murangira said, lifting businesses out of the current challenges was a surmountable assignment that must be well planned and coordinated to support sustained recovery of especially youth startups.
 
Majority of youth businesses across Africa fall under small and medium enterprises or startup, whose cash flow has been disrupted by Covid-19 related measures. 
Mr Murangira also noted that it was time for regional blocs to harmonise tax policies and systems to create fair and attractive business environment that does not support harmful tax practices, tax havens and other forms of illicit financial flows.  

The statement issued on the eve of International Youth Day, also wants trading blocs across Africa to review existing double taxation agreements that have been signed with a number of tax havens in the global north as well as align tax policies with the African Tax Administration Forum.