Are tougher African fiscal terms achieving their aim?
World-class exploration success in a number of Sub-Saharan countries has encouraged governments to toughen fiscal terms. However, it is unclear if increasing government take is achieving the aim of maximising government revenues. Tougher terms increase the economic threshold of future discoveries and can discourage further exploration investment. But if fiscal change is managed correctly, countries can avoid creating the ‘boom-and-bust’ cycles in investment and revenue generation.