Africa lost $836bn (£650bn) in illegal movement of money out of the continent in the 15 years to 2015, a new report by the UN agency for trade and development (UNCTAD) estimates.
Compared with Africa’s total external debt of $770bn in 2018, this makes Africa a “net creditor to the world”, the report notes.
The illegal outflow of money is mainly related to the export of high-value goods such as gold, diamonds, and platinum. Revenues are lost through corruption, theft and tax evasion.
“Illicit financial flows rob Africa and its people of their prospects, undermining transparency and accountability and eroding trust in African institutions,” said UNCTAD Secretary-General Mukhisa Kituyi.
The report cautions that although the amounts of the illegal flows are large, the figures could underestimate the problem and its impact.
The report notes that the the loss undermines African government's ability to provide services like healthcare, education, and infrastructure.
“Illicit financial flows and corruption are inhibiting African development by draining foreign exchange, reducing domestic resources, stifling trade and macroeconomic stability and worsening poverty and inequality." the UNCTAD secretary-general said.
Latest Stories
-
We didn’t sneak out 10 BVDs; they were auctioned as obsolete equipment – EC
2 hours -
King Charles to resume public duties after progress in cancer treatment
2 hours -
Arda Guler scores on first start in La Liga as Madrid beat Real Sociedad
3 hours -
Fatawu Issahaku’s Leicester City secures Premier League promotion after Leeds defeat
3 hours -
Anticipation builds as Junior Speller hosts nationwide auditions
3 hours -
Etse Sikanku: The driver’s mate conundrum
4 hours -
IMF Deputy Chief worried large chunk of Eurobonds is used to service debt
4 hours -
Otumfuo Osei Tutu II celebrates 25 years of peaceful rule on golden stool
4 hours -
We have enough funds to pay accruing benefits; we’ve never missed pension payments since 1991 – SSNIT
5 hours -
Let’s embrace shared vision and propel National Banking College – First Deputy Governor
5 hours -
Liverpool agree compensation deal with Feyenoord for Slot
5 hours -
Ejisu by-election: There’s no evidence of NPP engaging in vote-buying – Ahiagbah
5 hours -
Ejisu by-election: Independent ex-NPP MP’s campaign team warns party against dubious tactics
6 hours -
ZEN Petroleum supports Tse-Addo Future Leaders School
7 hours -
NPP must win back Adentan seat in 2024 polls – Obeng Fosu
7 hours