Domestic resources far outweigh the amount of ODA that can be provided from donor partners. 50-80% of resources needed to finance the SDGs will have to come from domestic resources. This can be achieved through improved tax administration, improved capacity for implementation and obtaining an effective and efficient tax policy.
Improving public expenditure efficiency is also very important. This can be achieved through: building capacity from technical assistance and provision of advice and knowledge to strengthen country systems; Involving broader segments of society in decision making; and strengthening anti-corruption authorities, preventive measures and strong leadership.
Reducing illicit financial flows is another very important way of improving domestic resources. Studies show that up to $50-60 billion in illicit financial flows leave Africa per year. The main source of this loss is mispricing of trade invoices (under invoicing), illegal activities and exploitation from multinationals of loopholes in the law on tax.