IN a significant development, the African Union (AU) highlighted its commitment to tackling illicit financial outflows from the continent, aiming to expedite efforts toward achieving inclusive growth and sustainable development. The announcement was made during the 2023 African Parliamentary Network on Illicit Financial Flows and Taxation Conference, held in Nairobi, Kenya.
Patrick Ndzana Olomo, the acting head of the economic policy and research division at the Department of Economic Affairs of the AU Commission, addressed the regional forum and underscored the detrimental impact of illicit financial outflows on Africa’s capacity to mobilise resources for its development objectives. Illicit flows, whether through theft or tax evasion, have been identified as a major hindrance to the continent’s progress.
‘Part of the reason for Africa’s financing deficits is the pervasive issue of illicit financial flows to jurisdictions outside the continent,’ Olomo stated, emphasising the urgency of addressing this critical issue.
The conference, which convened over 100 parliamentarians from more than 40 African countries, provided a platform for discussing policy trends and challenges associated with combating illicit financial flows. Participants deliberated on strategies to curb such activities and enhance domestic resource mobilization.
Olomo also shed light on the daunting financing gap that Africa currently faces, estimating it to be in excess of $200bn annually. This staggering shortfall has far-reaching implications for the continent’s ability to fund its development projects and meet the needs of its growing population.
He further noted that the challenge is compounded by difficulties in securing private finance and overseas development assistance. As such, the focus is shifting towards improving domestic resource mobilisation efforts to bridge the financing gap and support the AU’s aspirations for inclusive growth and sustainable development.
The AU’s determination to combat illicit financial flows is a crucial step towards addressing the financing deficits and advancing the continent’s long-term development goals, emphasising the need for collaborative efforts to ensure a prosperous future for Africa.
