Africa Loses Over $300 Billion to Illicit Financial Flows Every Year

According to tax experts, Africa’s definition of illicit financial flows is enabling looters to steal money from the continent, thereby weakening its growth. Consequently, they want the continent’s authorities to expand the definition to include tax evasion and other benefits that accrue from transnational crimes, bribery, embezzlement, and other illegal activities. The experts argue that a broader definition will improve policymaking on the continent, encouraging international cooperation and fostering transparency. Illicit financial flows refer to illegal financial transactions across countries’ borders, including activities like money laundering, terrorism financing, and tax abuse. These activities weaken domestic institutions, particularly on the continent, eroding public trust. They also lead to lost revenues, which hinders sustainable development and exacerbates poverty.

SOURCE: EAST AFRICAN