ECOWAS Advances Fiscal Integration in Cabo Verde and Guinea-Bissau

By Roger A. Agana 

August 28, 2025

The Economic Community of West African States has completed assessment missions to Cabo Verde and Guinea-Bissau, evaluating progress on regional tax harmonization efforts that could reshape fiscal policies across the 12-member bloc.

ECOWAS officials spent a week in both countries from August 16-23, examining how well national governments have adopted eight community fiscal directives and two supplementary acts covering value-added tax, excise duties, and transfer pricing regulations.

Salifou Tiemtore, Director of Customs Union and Taxation, led the delegation alongside Principal Programme Officer Darlingston Talery. They met with Finance Ministers Olavo Avelino Garcia Correia of Cabo Verde and Ilídio Vieira Té of Guinea-Bissau to discuss institutional frameworks for monitoring fiscal transitions.

Guinea-Bissau showed tangible progress with its VAT implementation in January 2025, which has already boosted revenue collection according to the ECOWAS team. The country also established a specialized unit preparing its first Tax Expenditure Report covering 2024 and 2025, marking a significant step toward transparency.

Cabo Verde earned praise for strong political commitment to fiscal integration. The mission highlighted ongoing reforms at the Finance Ministry that align with ECOWAS regional objectives, though specific details of these reforms were not disclosed.

However, challenges remain across both nations. Limited human resources, technical capacity constraints, and financial restrictions continue to hamper full implementation of fiscal instruments. Guinea-Bissau faces additional hurdles from political instability, while both countries need enhanced institutional coordination.

The missions concluded with an Aide Mémoire outlining specific steps for domesticating regional tax instruments. ECOWAS committed to providing continued technical and financial assistance to help member states strengthen their fiscal systems according to regional standards.

These efforts come as ECOWAS works to create harmonized tax systems across member states following recent changes to the bloc’s composition. Burkina Faso, Mali, and Niger withdrew from ECOWAS in January 2025, leaving 12 active members working toward deeper economic integration.

The regional body generates revenue through a 0.5% community levy on goods imported from non-ECOWAS countries. With a combined GDP of $734.8 billion, the bloc aims to create a unified trading area serving an estimated 300 million citizens.

ECOWAS leadership emphasized their commitment to promoting transparent and efficient tax systems that advance regional integration while ensuring sustainable revenue mobilization for member governments.