M&G Africa

16 Jun 2015 14:20

The continent bled out about $1 trillion between 1980 and 2008; that's a lot of money that would have caused dramatic change at home if well spent.

 

AFRICA loses massive financial resources of about $50 billion each year through illicit activities of multinational companies and rich individuals. 

These resources, if retained in the continent, could be invested in productive sectors of economies to lift Africa’s growing population from poverty.

According to the African Union/Economic Commission for Africa High Level Panel, chaired by former South African president Thabo Mbeki, on Illicit Financial Flows (IFFs) from Africa report the continent lost about $1 trillion between 1980 and 2008. 

The multiplier effects of these losses are much larger. IFFs from Africa in real terms mean loss of jobs, income, decent education, health facilities and other basic infrastructure critical to transforming the economy of countries in Africa and the socio-economic conditions of Africans.

According to the High Level Panel’s report the major perpetrators of IFFs from Africa are multinational companies, especially those operating in Africa’s extractive sector, mostly in oil, gas and mining. These activities pose a major threat to sustainable development and security

It is against this backdrop that the Interim Working Group (IWG) of the African IFF Campaign Platform came about, comprising six Pan-African organisations namely; Tax Justice Network-Africa (TJN-A), Third World Network-Africa (TWN-Af), Africa Forum and Network on Debt and Development (AFRODAD) the African Women’s Development and Communication Network (FEMNET), the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa) and TrustAfrica supported and joined by the Global Alliance for Tax Justice (GATJ) will launch a unified African campaign platform on Illicit Financial Flows. 

Dubbed “Stop the Bleeding”, the launch will take place on June 25, 2015 in Nairobi, Kenya.