3 January 2013

East Africa: Uganda Biggest Conduit for Dirty Money - Report

Photo: Kate Lucy/AllAfrica
Uganda ranked the biggest recipient of dirty money.

Uganda is the biggest recipient of illicit financial flows in East Africa, according to data from the Global Financial Integrity (GFI).

The report places Uganda at position 66, with close to $680m of illicit money. Tanzania comes second in the region with about $333m, landing at the 86th position. Meanwhile, Rwanda and Kenya have lost $158m and $112m respectively, the region's smallest economy Burundi lost $49m.

The losses faced by Uganda double the 2012/13 budget allocation to agriculture, where at least three out of four Ugandans depend for a living. The Global Financial Integrity points to shady invoices, criminal activities, tax evasion and overcharging as reasons for the huge capital flight.

"... Illicit flows are mainly driven by macroeconomic issues captured by corruption perceptions indicators, the size of the underground economy, and weak regulatory institutions".

Elsewhere, the US-based organization reveals that Nigeria, ranked 7th globally, is the highest ranked African country with flows of close to $129bn, followed by South Africa that has lost $84bn. Meanwhile, the second largest economy in the World, China tops the list with $2.74tn lost, followed by Mexico at $476bn.

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