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Illegal financial outflows affecting Africa’s development goals, AU Official says


GOOBJOOG NEWS | NAIROBI: The African Union has said fighting illegal financial outflows from the continent will boost efforts to achieve inclusive growth and sustainable development.

Acting head of the economic policy and research division at the Department of Economic Affairs and the AU Commission Patrick Ndzana Olomo said that  illicit financial outflows through theft or tax evasion reduces Africa’s ability to raise its own resources and achieve its development goals.

“Part of the reason for Africa’s financing deficits is the pervasive issue of illicit financial flows to jurisdictions outside the continent,” Olomo said during the 2023 African Parliamentary Network on Illicit Financial Flows and Taxation Conference held in Nairobi, Kenya on Wednesday.

The two-day meeting brought together more than 100 parliamentarians from over 40 African countries to discuss policy trends and challenges in tackling illicit financial flows.

Olomo revealed that Africa currently faces an estimated financing gap of over 200 billion U.S. dollars annually.

He noted that the lack of sufficient resources is exacerbated due to increased challenges in accessing not only private finance but also overseas development assistance, hence the need to improve domestic resource mobilization efforts.