Africa Loses Some $89 Billion a Year to Illicit Financial Flows
A new report estimates Africa loses around $89 billion every year to illicit financial flows. The figure exceeds the continent's combined official development aid and foreign direct investment. The report calls for an acceleration of tax-justice and transparency reforms.
According to a new international report relayed by Anadolu Agency, the African continent loses around $89 billion every year to illicit financial flows. The figure is higher than the combined total of official development assistance and foreign direct investment received by the continent.
The report cites transfer pricing by multinationals, invoice manipulation and capital movements routed through tax havens as the leading channels. Mining, hydrocarbons and precious metals are highlighted as the sectors with the largest leakages. Officials note that the losses cut into resources that could otherwise fund education, healthcare and infrastructure.
The report calls on the African Union to strengthen tax justice, beneficial-ownership transparency and cross-border audit mechanisms. It also says the speed at which African banking systems align with international cooperation standards will be decisive in containing the leakage.
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