Africa Loses €85.5 Billion Annually Due to Illicit Financial Flows
The African continent is deprived of nearly €85.5 billion annually due to illicit financial flows, hindering its development, according to the United Nations. These illegal cross-border financial flows, which are illegal in origin, transfer, or objective, drain the resources necessary for development. The African Tax Administration Forum (ATAF), a coalition of 44 African countries, is intensifying its efforts to combat these illicit financial flows and recover lost tax revenues.
"Illicit financial flows weaken Africa's ability to finance its development and undermine the financial foundations necessary for sustainable growth," explains Logan Wort, Executive Secretary of the African Tax Administration Forum. To date, ATAF has enabled its members to recover over €1.7 billion in tax revenues, a significant milestone in the fight against illegal financial flows. Aware of the complexity of these financial crimes, ATAF is working to improve tax systems across Africa. Moreover, the guidance notes and approaches proposed by ATAF constitute essential resources for its members in the fight against illicit financial flows.
"Through joint initiatives, we are making significant progress in reducing illicit financial flows and improving domestic resource mobilization," he adds. These mechanisms are essential for improving transparency and combating illicit financial flows. "The signing and ratification of the African Multilateral Agreement on Mutual Assistance in Tax Matters (AAMATM) by member states will mark a turning point in our fight against illicit financial flows," emphasizes Logan Wort. "This will facilitate cooperation between African nations, making it more difficult to conceal and impunity for illegal activities."
The actions taken by the African Tax Administration Forum demonstrate the importance of a concerted strategy to address the challenge of illicit financial flows. By recovering lost resources due to these flows, African countries can reinvest in vital sectors such as education, health, and infrastructure, thereby stimulating growth and improving the quality of life for millions of people.
