News and Ideas (15)
Africa loses an estimated $60 billion every year through Illicit Financial Flows (IFFs). Defined by the Global Financial Integrity as “money that is illegally earned or transferred”, this enormous hemorrhage of financial resources from the continent severely undermines Africa’s capacity for domestic resource mobilization (DRM) leaving African countries with no resources to finance development. The majority of these IFFs originate from tax evasion and tax avoidance practices perpetrated by multi-national corporations (MNCs), particularly those involved in the extractive sector. In the last 3 decades cumulative losses from the continent amount to over $1 trillion. Thus, effectively IFFs deprive countries of public revenues that could be used to address poverty and inequality.
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The Conference on Promoting International Co-operation in TCombating Illicit Financial Flows and Enhancing Asset Recovery to Foster Sustainable Development was held in Abuja, Nigeria from 5 – 7 June, 2017. The Conference was organized under the auspices of the Presidential Advisory Committee Against Corruption (PACAC) in collaboration with the Federal Ministry of Justice and Ministry of Foreign Affairs.
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Illicit financial flows (IFFs) are a large and growing problem for the African continent, with upwards of $70 billion in IFFs leaving the continent annually.1 African governments, intergovernmental organizations, industry, and civil society have come to understand the severity of the problem over the past few years.
The following list of actions are meant to address some of the first steps in addressing IFFs. These actions are foundational, involving measures that can either be undertaken more quickly and easily in some countries where some of the processes and commitments may already be underway or measures that lay the groundwork for later reforms. The result is an Accelerated IFF Agenda that governments can use as a place to begin their work to tackle IFFs in their own countries, leading to greater domestic resource mobilization and growth, resources which will be critical in making progress on the Sustainable Development Goals of the 2030 Agenda for Sustainable Development, and the African Union’s Agenda 2063, the Addis Tax Initiative, and the Africa Mining Vision.