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

Trezor Expands Passphrase Limit to Enhance Wallet Security

Trezor has increased the passphrase limit for its hardware wallets from 50 to 128 characters to enhance security for users' cryptocurrency holdings.

user avatarDavid Robinson

Animoca Brands Expands Institutional Business with New Fund Management Authorization

Animoca Brands has received authorization to manage collective investment funds in Abu Dhabi, enhancing its institutional business.

user avatarAndrew Smith

Operational Challenges in Tokenized Asset Settlements Highlighted

Ongoing trials of tokenized assets in Hong Kong reveal significant operational challenges, including the need for consistent collateral and payment processes, as well as complexities in handling redemption requests.

user avatarTando Nkube

T7X Aims to Boost Market Liquidity with Native Digital Securities

T7X aims to revolutionize trading for Reg A and Reg D holdings by introducing native digital securities for secondary market trading, enhancing liquidity for investors.

user avatarZainab Kamara

T7X Introduces Innovative Native Issuance Model for Tokenized Stocks

T7X introduces an innovative native issuance model for tokenized stocks, integrating compliance and ownership verification into the token issuance process.

user avatarJacob Williams

Bitbase Unveils Major Brand Upgrade with New Mascot BENIE

Bitbase announces the launch of Bitbase 20, featuring a new brand identity and mascot, BENIE.

user avatarSon Min-ho

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.