Up to $1.4 trillion siphoned out of Africa in 30 years – Report
The African continent suffered an economic loss of between $597 billion and $1.4 trillion in a 30-year period from 1980 to 2009 in net resource transfers through licit and illicit ways, according to a new report published May 29, 2013.
“Between 1980 and 2009, the economies of Africa lost between $597 billion and $1.4 trillion in net resource transfers away from the continent,” said the report titled “Illicit Financial Flows and the Problem of Net Resource Transfers from Africa: 1980-2009”.
These transfers include both licit flows, such as investment, foreign aid, debt relief, and remittances moving into and out of the continent, and illicit flows, such as the proceeds of crime, corruption, and tax evasion moving out of the continent, according to the report which was produced by the Global Financial Integrity (GFI) and the African Development Bank (AfDB).
Launched at the ongoing AfDB 48th Annual Meetings in Marrakech, Morocco, the report revealed that the resource drain on Africa over the past thirty years is almost equivalent to the continent’s current GDP.
And according to AfDB’s Chief Economist, Prof. Mthuli Ncube, the resource drain is “holding back” Africa’s lift-off.
“The traditional thinking has always been that the West is pouring money into Africa through foreign aid and other private sector flows, without receiving much in return. Our report turns that logic upside down – Africa has been a net creditor to the rest of the world for decades,” said Raymond Baker, President of the Washington-based research and advocacy organization, the GFI.
The report recommends policy measures that must be taken to stop the draining of Africa’s resources.
The report requires banks and tax havens to regularly report to the Bank of the International Settlements (BIS), detailed deposits by sector, maturity, and country of residence of deposit holders.
It recommends that the problem of shell companies should be addressed by requiring that all corporations, foundations, and trusts confirm beneficial ownership information in all banking and securities accounts.
It says capacity issues and corruption domestically within African tax authorities must also be addressed.
The report also recommended a pursuance of automatic cross-border exchange of tax information on personal and business accounts, ideally on a multilateral basis.
By Ekow Quandzie in Marrakech, Morocco
NOT SURPRISE BECAUSE WITH ALL THE RESOURCES AFRICA HAD NOTHING TO SHOW FOR. ALL THE BLACK CONTINUE NOT AMONG WHITE FOLKS WHY BECAUSE OF MENTALITY OF LEADERS IN THIS REGION AND SOONER THESE LEADERS ARE LET GO THE BETTER THE CURRENT AND FUTURE GENERATIONS WILL BE. IT USELESS FOR THESE LEADERS KEEP STEALING FROM THEIR OWN PEOPLE.