Africa Loses $1.6 Billion Daily Due to Illicit Financial Flows

user avatar

by Giorgi Kostiuk

2 years ago


The African Development Bank (AfDB) has revealed that Africa is losing nearly $1.6 billion daily due to illicit financial flows and tax planning associated with multinational organizations, resulting in annual losses of approximately $587 billion.

Africa's Losses from Illicit Flows

According to the African Development Bank, illicit financial flows encompass the movement of funds across borders that are illegal in their source, transfer, or application. Chief Economist of AfDB, Kevin Urama, pointed out that adding illegal financial flow to corruption intensifies Africa's predicament, leading to a $275 billion loss due to tax evasion.

Causes and Solutions

Kevin Urama emphasized that Africa loses thrice as much as it gains from the global market and should focus efforts on stopping resource leakage. The International Monetary Fund (IMF) and other bodies have stressed the need to enhance quality and accountability of institutional systems and policies to combat this issue.

Role of International Organizations

Organizations like the United Nations Conference on Trade and Development (UNCTAD) and the International Monetary Fund (IMF) play significant roles in combating illicit financial flows, focusing on preventing tax evasion and stabilizing financial integration while emphasizing robust international standards.

Addressing capital leakage in Africa requires a comprehensive approach, including enhancing domestic governance and working with international organizations and financial operators.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Solayer Pay Launches Direct Stablecoin Deposits for Enhanced User Experience

Solayer Pay has launched a feature allowing direct stablecoin deposits from five major blockchain networks, simplifying the funding process for users.

user avatarAyman Ben Youssef

CMCC Global Introduces Tokenized Fund Strategies

CMCC Global is introducing two fund strategies as tokenized securities through Tether's Hadron infrastructure and Bitfinex Securities under El Salvador's regulations.

user avatarTando Nkube

Senator Blumenthal Investigates Tether's Payments to Consultancy

Senator Blumenthal investigates Tether's payments to consultancy Nxum over potential ethics concerns.

user avatarKofi Adjeman

Blockchain Association Pushes for Crypto Tax Legislation

The Blockchain Association advocates for bipartisan changes to cryptocurrency tax regulations, seeking a de minimis exemption for small transactions and clarity in tax reporting for digital asset users.

user avatarNguyen Van Long

Starknet Community Votes to Explore Independent Post-Quantum Layer 1 Network

The Starknet community is exploring the possibility of transforming into an independent post-quantum secure layer 1 network, with a recent poll showing strong support for research into this initiative.

user avatarSatoshi Nakamura

SoFi Introduces SOFIE Tokenized Deposit for Earning Interest

SoFi has launched a new tokenized deposit product named SOFIE, allowing consumers to earn interest on dollar balances while facilitating blockchain transfers.

user avatarJesper Sørensen

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.