Tax data can be mined to shape better policies. South Africa, Uganda and Zambia show how

LUSAKA – In a significant stride towards data-driven governance, Zambia has joined the ranks of South Africa and Uganda in establishing advanced tax data labs, a move poised to revolutionise how the government understands and responds to the nation's economic landscape and the needs of its citizens. This initiative comes at a crucial juncture, as African nations grapple with a substantial decline in bilateral aid and an escalating burden of sovereign debt interest payments. The global financial landscape has shifted dramatically, with official development assistance experiencing its largest annual decline in 2025, falling by nearly a quarter. Concurrently, interest payments on sovereign debt are consuming an increasingly larger share of national budgets across the continent, diverting critical resources from essential public services and development projects. In this challenging environment, the ability to generate robust, localised data becomes paramount for crafting resilient and effective national policies. Zambia's engagement with these data labs signifies a strategic pivot towards harnessing domestic information for sustainable development. Historically, many African governments, including Zambia, have relied on external data sources or outdated statistics, leading to policy interventions that may not fully align with the on-the-ground realities. The new tax data labs provide an unprecedented opportunity to analyse granular tax information, offering insights into income distribution, business activity, employment patterns, and consumption trends with a level of detail previously unavailable. This enhanced understanding allows policymakers to identify specific sectors requiring investment, tailor social protection programmes more effectively, and design fiscal policies that are both equitable and growth-oriented. For instance, by analysing tax records, the government can pinpoint areas of economic vulnerability, assess the impact of tax incentives, or identif