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Africa's Lost Billions - Illicit Flows Examined at #ADF9

"Illicit financial flows are unrecorded capital flows derived from: (a) proceeds of theft, bribery and other forms of corruption by Government officials; (b) proceeds of criminal activities, including drug trading, racketeering, counterfeiting, contraband and terrorist financing; and (c) proceeds of tax evasion and laundered commercial transactions. Estimates from various recent studies including 'Financing Africa's post-2015 development agenda' reveal that, from 1970 to 2008, Africa lost $854 billion to $1.8 trillion in illicit financial flows... The loss of funds through illicit financial flows undermines revenue generation and reduces the benefits from economic activities, particularly in the extractive sector (ECA, 2013). It also undermines Africa's ability to mobilize resources generated by such sectors to fund developmental goals" - UNECA.

 

A panel convened at the 9th African Development Forum held in Marrakech, Morocco, to discuss the complex implications of curbing illicit financial flows, as an innovative means of financing development in Africa.



Photo: UNECA

A panel convenes to discuss the complex implications of curbing illicit financial flows, as an innovative means of financing development in Africa during the 9th African Development Forum held in Marrakech, Morocco.

  • Africa:   Tracking Africa's Stolen Billions

    Economic Commission for Africa, 15 October 2014

    Illicit financial flows are a major drain on Africa's resources for development. International coordination is needed to slow the flow of stolen assets. Read more »

Photo: UNECA

Dr. Abdalla Hamdok, Deputy Executive Secretary, Economic Commission for Africa on the Illicit Financial Flows panel at the 9th African Development Forum #ADF9

Documents

Chart depicts Illicit Financial Flows from Africa.

Documents

  • Africa:   Duarte - Focus On Institutions for Development

    Economic Commission for Africa, 15 October 2014

    Governance and institutional reform are central to Africa's solutions to asset flight and inequality, says Cabo Verde's finance minister. Read more »

Photo: UNECA

Cristina Duarte, the finance minister of Cabo Verde, in reference to illegal flow of money out of Africa, said that "it is time that African leaders stood up and took a stance on the issue. Institutions need to be strengthened to ensure that flows can be stopped and perpetrators brought to justice, the panel concluded. Fragile environments created by weakened institutions attract predatory tendencies."

Photo: UNECA

Founder and Executive Chair, Mandela Institute for Development Studies (MINDS), South Africa, Nkosana D Moyo, joined a panel on "New Forms of Partnerships" at the 9th African Development Forum (#ADF9). In reference to Africa's illicit capital flows, he remarked, "We have to look within and act together. It is true that economic indicators show us that Africa is rising but it would be good to find correlation between indicators and activities. I believe, the world is excited about us because we have resources and we have our markets. But we should not become a dumping ground for other peoples’ goods."

InFocus