The risks associated with these flows are more dangerous than that for illegal arms and drugs
Head of Tax Policy Unit at the Ministry of Finance, Daniel Nuer has urged African governments to implement tighter measures against illicit financial flows.
According to him, the risks associated with these flows are more dangerous than that for illegal arms and drugs.
He made the call during a stakeholder engagement organised by the Ghana Integrity Initiative and Tax Justice Network Africa. Nuer cautioned, “We all agree that the natural resource sector plays a significant role in global illicit financial flows, as such, the risk of illicit financial flows intermingling with more dangerous flows such as arms and drugs.”
The tax policy expert added that to mitigate the effects of the coronavirus pandemic on economies particularly across Africa, governments must gear towards wide-ranging tactics to combat the illicit flows from the extractive sectors on the continent.
“African governments must do all within their power to block all avenues of illicit financial flows from the continent in order to make the most of their mineral resources and their revenue thereof,” he added.
The United Nations Conference on Trade and Development, UNCTAD’s, Economic Development in Africa Report of 2020 reveals that curbing illegal financial flows could almost cut in half the annual financing gap of US$200 billion that Africa faces to achieve the Sustainable Development Goals.
According to the report, an estimated $88.6 billion, equivalent to 3.7 percent of Africa’s GDP, leaves Africa every year in the form of illicit financial flows.
