The African Tax Administration Forum (ATAF) has been awarded by the Revenue Services Lesotho (RSL) for exceptionally strategic partnership and consistent support in improving Lesotho’s tax systems. The recognition was made during the 2nd Taxpayer Appreciation Day in Maseru on 26 Sept 2025.
The award reflects years of close collaboration between ATAF and RSL, particularly in the area of international tax and transfer pricing. Supported jointly with the World Bank Group, ATAF has assisted RSL to build expertise to tackle complex cross-border tax challenges. This has included capacity building, legislative reforms, and direct audit assistance, all of which have had a measurable impact on Lesotho’s tax system.
Receiving the award on ATAF’s behalf, ATAF Executive Secretary- Ms. Mary Baine, welcomed the honour: “This recognition is not just for ATAF, but for our shared journey with the Revenue Services Lesotho. By strengthening transfer pricing rules, building audit capacity, and supporting practical cases, we are helping Lesotho secure revenues that finance its own development priorities. This is at the heart of ATAF’s mission — to work alongside our members to enhance domestic resource mobilisation and ensure that Africa’s growth is funded from within,” she said. She further congratulated RSL under the leadership of Dr Mathabo Makoko on exceeding their annual target by M261.2 million, and recording stellar growth in their tax to GDP ratio from 22% in 2022 to 23.5% in 2024; underscoring that this exceeds the African average of 15% for the last couple of years according to ATAF’s annual publication- the African Tax Outlook.
Building capacity and strengthening laws
Since the launch of the in-country programme, ATAF has trained over 50 officials from RSL across various departments, covering topics such as commodity exports, distribution arrangements, and financial transactions. The training has strengthened RSL’s ability to address tax risks in specialised sectors that are often difficult to audit.
On the legislative side, ATAF has been instrumental in improving Lesotho’s transfer pricing regulations. Initial reforms in 2018 aligned Lesotho’s rules more closely with international standards. A new round of updates is now underway in 2025, with ATAF supporting RSL in reviewing the mining fiscal regime and thin capitalisation rules, and aligning domestic provisions with evolving global best practices.
Tangible results in Audit assistance
The most visible impact has been in direct audit assistance. Working alongside RSL’s audit teams, ATAF has provided guidance in financial analysis, transfer pricing assessments, and dispute resolution. These efforts have led to over 10 concluded tax assessments across mining, retail, and financial services, yielding USD 36.9 million in assessments, USD 19.5 million in reduced losses, and USD 2.1 million in collections.
Looking ahead
Looking ahead, ATAF’s collaboration with RSL will extend into new areas, including VAT gap analysis and monitoring, frameworks for taxing High Net Worth Individuals (HNWI), and technical mentoring.
The award highlights not only the achievements of the ATAF–RSL partnership but also the value of sustained technical assistance in strengthening African tax systems. Through targeted training, legal reforms, and direct audit support, ATAF’s work in Lesotho demonstrates how collaboration can translate into real revenue gains and lasting institutional capacity.