How Africa loses $88bn annually to Illicit financial flows

IN a telling revelation at the African Organisation of Public Accounts Committee (Afropac) Conference in Kampala, Speaker Anita Among exposed the devastating impact of illicit financial flows (IFFs) on the continent, with Africa losing an estimated $88 billion (about R1.6 trillion) annually.

The figures, described as a “haemorrhage of resources”, underscore a crisis that continues to cripple development and impoverish millions across the continent.

Speaking at the conference, held at the Golden Tulip Hotel this week, Among did not mince her words: “The impact of this loss has and continues to be felt by our citizenry through foregone health facilities and services, schools, roads, rural electrification, and development of natural resources,” she declared.

Her remarks laid bare the human cost of IFFs, which divert funds desperately needed for public services and infrastructure.

The conference, themed “Strengthening Legislative Action to Combat Illicit Financial Flows and Foster Public Financial Resilience”, brought together key stakeholders to address what has become a systemic threat to Africa’s economic stability.

Among commended public accounts committees (PACs) for their efforts in tackling fiscal mismanagement but stressed that more must be done. “Transparency, good governance, and strong institutions are essential to promoting accountability in Africa,” she asserted.

Among also revealed that the Association of African Parliament Speakers would push for increased funding for Afropac, a move she described as critical to curbing the financial drain. “We will take it up and we will support Afropac to grow so that we are able to save the money we have as Africa,” she pledged.

Afropac chairperson, Medard Sseggona, echoed Among’s sentiments, emphasising the need for collaboration in the fight against IFFs. He praised regional bodies such as the African Union, the South African Development Community Organisation of PAC (Sadcopac), and the East and West African Associations of Public Accounts Committees for their support. “By collaborating, we can create a united front against those who aim to illegally drain Africa’s common wealth and resources,” Sseggona said.

He also welcomed the Global Fund as a new partner, highlighting the importance of international cooperation in addressing the issue. Sseggona urged African parliaments to take decisive action, calling on governments to increase funding for Afropac.

“By the time we conclude this conference, we should have actionable resolutions that will strengthen and enhance public financial oversight and equip our countries with tools needed to effectively combat illicit financial flows,” he said.

Despite the progress made, challenges remain. Mark Botomani, the secretary-general of Afropac, pointed out that ensuring governments implement PAC recommendations is a persistent hurdle.

“The fight against illicit financial flows includes ensuring that public resources are harnessed for sustainable development, economic growth, and the wellbeing of the citizenry,” Botomani said. His remarks underscored the gap between policy and practice, a gap that continues to undermine efforts to hold governments accountable.

Afropac, established in 2013, has been at the forefront of promoting good governance, accountability, and transparency in public resource management across Africa. However, the scale of the IFF crisis demands more than rhetoric.

The $88bn lost annually is not just a statistic; it represents schools unbuilt, hospitals unstaffed, and roads unpaved. It is a stark reminder of the systemic corruption and weak governance that continue to plague the continent.

As the conference continued and ended on Friday, the question remains: Will African leaders translate these discussions into concrete action?

The time for half-measures is over. The continent’s future depends on its ability to stem the tide of illicit financial flows and reclaim its stolen wealth. The world is watching.