AfDB wants intensified efforts at curbing illicit financial flow in Africa

…say $6.7 billion lost to tax avoidance annually

In the ongoing battle to safeguard Africa’s financial systems, experts are sounding the alarm for increased measures to combat illicit financial flows.

The continent faces a significant challenge as it grapples with the detrimental impact of funds siphoned away through corruption and other illicit activities.

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Recognizing the urgency of the situation, experts are advocating for heightened efforts and strategic interventions to curb the flow of illicit finances, aiming to fortify Africa’s economic stability and foster sustainable development.

Lamin Barrow, Director General of the Regional Development and National Governments (RDNG) at the African Development Bank Group, delivered a warm welcome at the closing session of the Executive Training Program on “Enhancing Accountability, Transparency, and Curbing Corruption and Illicit Financial Flows in Africa.”

The event, commenced from December 11 to 13, marked the final module before the graduation of the first cohort of the Public Finance Management Academy for Africa (PFMA) Public Finance Management Executive Training Series.

Addressing participants, Barrow expressed gratitude to the Ministry of Finance, Federal Republic of Nigeria, for hosting the event. He acknowledged the commitment of the training’s founding partners, including the World Bank and IMF, and other institutional collaborators, in co-creating and implementing the program since its initiation in March 2022.

The PFMA’s 18-month Executive Training course, which began in June 2022, covered the public financial management cycle and ecosystem. The final module focused on “Enhancing Accountability, Transparency, and Curbing Corruption and Illicit Financial Flows in Africa.”

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Barrow emphasized the challenges posed by corruption and financial crimes in Africa, citing a report by the United Nations Conference on Trade and Development (UNCTAD). The report highlighted that corporate tax contributes one-sixth of the continent’s government revenues, with ten percent lost to tax avoidance, representing $6.7 billion annually.