IITUMBA Ndinelao,Namibia,PCKMD This week’s dialogue highlighted the complexity of Africa’s tax systems, particularly the close relationship between citizens' distrust of their governments and the perceived efficiency of the public sector.

In our paper (https://academic.oup.com/oep/article-pdf/76/3/741/58212432/gpad036.pdf) on the determinants of public sector efficiency covering 158 countries of all income levels, we demonstrate that an effective public sector is essential for strengthening institutional legitimacy and encouraging tax compliance. The analysis includes four sectors: education, health, infrastructure, and public administration. Our study emphasizes that key determinants of this efficiency include governance quality, transparency, administrative accountability, and the capacity to deliver quality public services. When citizens perceive their taxes are used efficiently, it reinforces trust in the tax system and motivates voluntary compliance, creating a virtuous cycle of improved public service delivery and civic engagement.

A fundamental takeaway from this discussion is the need for governments to tangibly demonstrate how tax revenues are utilized. Distrust and tax apathy often stem from a lack of transparency regarding resource allocation. Building on our research in Apeti et al. (2024), we argue that enhancing public sector efficiency requires citizens to have access to clear, accessible information about how their taxes are spent. Transparent management, supported by effective digital platforms, would bolster trust by showing how taxation directly funds essential services like healthcare, education, and infrastructure.

Moreover, public sector efficiency also hinges on administrative capacity to optimally manage resources. In our study (Apeti et al., 2024), we stress the importance of a robust institutional framework centered on accountability. As noted in the dialogue, implementing digital strategies must therefore be paired with strengthening institutional capabilities to ensure technological investments translate into better management and transparency. This would enable citizens to see tangible improvements, reinforcing their trust and engagement in the tax system.

In essence, for Africa’s tax systems to become true levers of development, they must be grounded in accountable governance, transparent communication, and effective technology use. As supported by our research (Apeti et al., 2024), this combination shows that public sector efficiency is not merely an internal management issue but a vital dimension of the social contract between states and citizens. Providing citizens with precise information...