UK puts £35m into tax overhaul programme in Ethiopia

(EBC; Aug 08, 2018) - The UK government has signed its largest ever tax partnership programme to help Ethiopia transform its tax system to increase its annual revenues so that it can better finance its own services and development, becoming less reliant on aid.

The move was announced during a visit to Ethiopia by Penny Mordaunt, international development secretary, who said the Department for International Development (DFID) will plough £35m into what will be its largest bilateral tax programme.

This is designed to transform Ethiopia’s tax system, helping it to harness the potential of its booming economic growth as the country industrialises.

Penny Mordaunt, international development secretary, said: ‘Ethiopia’s security, development and prosperity matter for the UK - which is why we’re working with the country to help it generate more tax from its rapid growth. This will help Ethiopia fund its own development - and ultimately transition beyond aid.’