The Impact of Tax Hikes on Debt Burden and Economic Development in Africa: Analysing the Trade-Offs and Implications for Sustainable Growth

This explanatory paper explored the complex relationship between tax hikes, public debt burden, and economic development in Africa. It argued that while increasing taxes can generate vital revenue for governments, it can also exacerbate debt levels and hinder economic growth if not managed effectively. Through a comprehensive analysis of the trade-offs involved, including case studies from various African countries, this paper aims to inform policymakers about the delicate balance needed for sustainable economic development. Through the findings, the study suggest that optimal tax policies, combined with effective governance, are crucial for enhancing economic resilience and addressing the challenges of public debt. More specifically the study recommends the strengthening of governance structures, engagement of stakeholders in policy making, assessing economic context before implementing tax hikes, diversifying revenue sources rather than solely relying on tax increases, and continuous monitoring and evaluation of tax policies to ensure sustainable economic growth.