Rwanda and Madagascar have signed a deal for the Indian Ocean island to adopt Kigali’s electronic tax invoicing technology, aiming to accelerate efforts to modernise tax administration and boost domestic revenue mobilisation.

The agreement cements Rwanda’s position as an emerging hub for tax administration modernisation in Africa. The country played a pivotal role in designing Kenya’s electronic Tax Invoicing Management System (eTIMS), which was rolled out in 2023.

Digital push Madagascar is looking to draw on Rwanda’s 13 years of experience in electronic tax invoicing.

In 2013, Rwanda launched Electronic Billing Machines (EBMs) to digitise tax invoicing, improve VAT compliance, and reduce tax evasion. The handheld, GPRS-enabled machines allowed VAT-registered taxpayers to generate certified invoices and, for the first time, transmit sales data to the taxman in real time.“Today, over 94.0 percent of Value Added Tax registered taxpayers in Rwanda use the electronic invoicing system, contributing 31.4 percent of the total tax revenue collection in the financial year 2024/25. The impact extends to other taxes like Income Tax and trading licences. We are pleased to share our experience and technological solutions,” said Ronald Niwenshuti, RRA Commissioner-General.

Madagascar’s Director-General of Taxes, Edmond Rafaralahy, said the country was seeking not just a tool but an entire ecosystem.“This marks a decisive step in the implementation of the e-invoicing project in Madagascar ... This legal framework is the foundation upon which we will build an effective transfer of expertise,” he said.

The deal comes eight months after the island established a framework for mandatory and centralised electronic tax invoicing through Decree No. 738/2025 of July 2, 2025.

The decree requires electronic invoices to capture full identification of the seller and buyer; serial number and invoice acceptance date; a full description of goods and services, including quantity, unit and total prices excluding taxes; applicable tax rates and amounts; and payment terms and due date.“The purpose of this decree is to modernise tax and commercial practices through the introduction of electronic invoicing. Unless otherwise provided by law, any taxpayer subject to the obligation of issuing invoices is required to use the e-invoicing system. Invoices issued or received by means other than the e-invoicing system are not recognised as valid,” the decree stated.

IMF pressureMadagascar has been under a $658 million three-year programme with the International Monetary Fund (IMF) since June 2024. Tax revenue mobilisation is a key target under the programme and guides the fund’s disbursements.“The Directorate-General of Tax Administration and the Directorate General of Customs Administration will work on the implementation of a strategy to increase tax revenue. To achieve the key objective of increasing net domestic tax revenues by 2.4 percent of GDP between 2023 and 2027, measures including the operationalisation of the new digitised system for Integrated Tax Administration have been identified,” a July 2025 IMF statement said.

Antananarivo has adopted a staggered approach to rolling out mandatory electronic invoices.

Large businesses will have six months to comply, medium-sized firms one year, and small and micro taxpayers two years to integrate their systems with those of the tax authority once rollout begins.

The move brings Madagascar into the fold of a growing number of African economies, making electronic tax invoicing mandatory to improve transaction visibility and widen the tax base.

Kenya adopted the system in 2024, Ghana began a phased rollout in 2022, and Zambia implemented it in 2024.

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