International Journal of Education, Science and Social Sciences

Reviews

Vol. 3 No. 2 (2024)

Artificial Intelligence Integration in Tax and Customs Systems in Africa: Applications, Impact and Challenges

Published
2024-12-20

Abstract

The integration of Artificial Intelligence (AI) in tax and customs systems is gaining momentum across Africa, driven by the need for enhanced efficiency, fraud detection, and revenue optimization. While several countries have adopted AI-driven solutions, the extent of implementation, impact, and challenges remain underexplored in existing literature. This paper reviews the current applications, impacts and challenges of AI in African tax and customs administrations. It aims to assess how AI is transforming revenue collection, trade facilitation, and compliance enforcement across the continent. A systematic literature review was conducted on secondary data from peer-reviewed journal articles, conference papers, institutional reports, and policy documents published between 2010 and 2024. The collected data was analyzed using a thematic approach, categorizing findings into three main themes; applications, impact and challenges. The review revealed that AI integration into tax and customs systems in Africa is an ongoing process with immense potential to transform public administration. While countries like Kenya, Uganda, South Africa, and others have made strides in adopting these technologies. Further, artificial intelligence (AI) has been deployed across African tax and customs systems in three primary applications: tax compliance enhancement, fraud detection and customs automation. These implementations have demonstrated measurable improvements in operational efficiency, revenue collection and trade facilitation, though with varying degrees of success across different countries. Challenges such as inadequate infrastructure and technical preparedness, constraints in data availability and standardization, cybersecurity threats, unclear policies and regulations affects optimal AI adoption. The study recommended that African governments should consider strategic investments in AI infrastructure, regulatory reforms and capacity building to enhance revenue collection, transparency and trade facilitation across the region.

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