Fiscal Incidence Analysis, South Africa
The Agence Française de Développement (AFD) and the GDN in partnership with the CEQ Institute will join forces to implement the CEQ assessment over the next two years in four African countries: Morocco, South Africa, Cameroon and Kenya.
Context

Morocco, South Africa, Cameroon and Kenya have been selected to participate in the research, analysis, and policy-prescription program which will significantly enhance the evidence base for efficient and thoughtful redistributive fiscal policy that protects poor and vulnerable households from further impoverishment.  Each of these countries will also be able to learn from and in some cases incorporate the successful programmatic experiences from the others and the work program that the AFD-CEQ partnership encompasses will promote skill transfer to, and capacity building in, these same countries.


This project is part of the European Facility for a research program on Inequalities in Developing and Emerging Countries, which is coordinated by the AFD. Financed by the Development Cooperation Instrument of the European Union, this facility enables to implement 20 research projects over the 2017-2020 period, in partnership with donors and research centers from the South to the North. 


Goals

The delivery of the CEQ Assessments, which are the centerpiece of the AFD-CEQ Institute partnership, accomplish two major objectives simultaneously.  The implementation of CEQ Assessments will build an empirical evidence base (country by country) of the redistributive and poverty-reduction impact of fiscal policy broadly as well as of individual fiscal elements (revenues or expenditures). The implementation of CEQ Assessments together with local research teams will complete a knowledge and skill transfer to researchers and policy officers who will remain close to the ongoing policy debate for and policy-making bodies who benefit from having this information at their disposal.  The AFD-CEQ Institute partnership therefore leaves in place the basic human infrastructure necessary for additional fiscal incidence analysis, including forward-looking policy simulation.

Method

The CEQ Assessment is a comprehensive and rigorous tax and benefit incidence analysis which enables to have an active engagement with the policy community. 

The CEQ Assessment is designed to address the following four questions: 

  • How much income redistribution and poverty reduction is being accomplished through fiscal policy?
  • How equalizing and pro-poor are specifics taxes and government spending?
  • How effective are taxes and government spending in reducing inequality and poverty?
  • What is the impact of fiscal reforms that change the size and/or progressivity of a particular tax or benefit?

In order to address these questions, experts from the CEQ working along with AFD researchers and local researchers teams will implement the CEQ methodology in Morocco, South Africa, Cameroon and Kenya. Once done, the objective is to mainstream the use of CEQ Assessments by reaching out to the policy community through partnerships and policy forums; and, to disseminate findings through an active communication and advocacy program undertaken in conjunction with key partners in the research, philanthropic and social activist communities.

Results

You may find the first fiscal incidence analysis report here:

Fiscal incidence, inequality and poverty in Kenya: a CEQ assessment 

Teachings
01/04/2018
Project start date
30/06/2020
Project end date
Cameroon, Kenya, Morocco, South Africa
Location
116 500
EUR
Financing amount

Contact:

Anda David, Research Officer, AFD

Hélène Ehrhart, Research Officer, AFD

The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.