Speaker of Parliament Anita Among has raised concern over the devastating impact of illicit financial flows on Africa’s development, calling for stronger accountability measures to curb the losses.
While officially opening the African Organization of Public Accounts Committee (AFROPAC) conference and the 5th General Assembly in Kampala, Among revealed that the continent loses approximately $88 billion annually about 325 trillion Ugandan shillings due to illicit financial flows.
“This massive loss has severe consequences on service delivery and infrastructure development in African countries,” Among said.
“It is imperative that accountability committees take a firm stance against illicit financial flows, working without fear or favor, even in the face of pressure from powerful individuals.”
She also called on accountability committees to closely monitor Treasury operations, noting that these are often at the heart of illicit financial flows in many African countries. “We must work together to address this challenge, which undermines our economic stability and development,” she emphasized.
The Chairperson of AFROPAC, Medard Lubega Seggona, and the Chairperson of the Southern African Development Community Organization of Public Accounts Committees (SADCOPAC), Warren Mwambazib, echoed Among’s concerns.
They emphasized the need for regional cooperation in tackling financial irregularities and formulating policies on debt management, climate change, and service delivery.
A report by the African Development Bank highlights that illicit financial flows significantly reduce tax revenues in African countries, with an estimated $50 billion lost annually.
Similarly, the Economic Development in Africa Report 2020 by the UN Conference on Trade and Development (UNCTAD) estimates that Africa loses about $88.6 billion 3.7 percent of its gross domestic product (GDP)—each year due to these financial outflows.
The five-day AFROPAC conference and General Assembly seek to address these challenges and foster regional collaboration in the fight against illicit financial flows.