Africa loses $50bn to illicit financial flow annually– AfDB

The African Development Bank (AfDB) says that Africa loses about $50 billion annually to illicit financial flow in the continent. Mr Ebrima Faal, Director, AfDB, Nigerian office disclosed this at workshop on the Role of Parliament in Combating Illicit Financial Flows from Africa, in Abuja. “Estimates on Illicit Financial Flows are highly disparate due to differences in methodologies. Current estimates suggest Africa could be losing more than 50 billion dollars annually in Illicit Financial Flows.

“This is about the same size as total FDI or total remittance flows and slightly higher than overseas development assistance (ODA),’’ he said. According to him, these estimates may well be lower than actual outflows as accurate data do not exist for all African countries. He noted that some discrete forms of illicit financial flows are excluded and  not easy to track or estimated. Commenting on the Objectives of the workshop, he said it was to review the challenges of and learn from the good practices adopted by experts in their fight against illicit financial flows.

He added that part of the objectives was also to share experiences in recovering the proceeds of crime from criminals. “Thirdly, to explore with you the role that parliamentarians can play in facilitating the work of the practitioners,’’ he said. Faal noted that the role of the Parliaments in promoting economic recovery and sustainable development was fundamental. He said Parliaments had the constitutional mandate to both oversee government and to hold government to account.

“They also play a primary role in promoting good economic and financial governance through effective oversight of the public budget and expenditure management. It is a vital democratic institution serving as a bridge between the state and society. In carrying out its legislative, oversight and representative roles, Parliaments help strengthen good governance for enhanced growth and poverty reduction. In this regard, the African Development Bank is committed to support the capacity building of African Parliaments, to help strengthen their oversight function,’’ he added.

Also, Mr Adeyemi  Dipeolu, Special Adviser to the Vice president on Economic Matters said that studies had proved that illicit financial flow had negative impact to the African economies. He said that act had reduced availability of resources for development; undermine efforts to ensure growth and development. He added that illicit financial flow had also weakened international cooperation in Africa adding  that it contributed to austerity measures witnessed in the region.

This, he said had triggered negative effect on growth. He called on the parliamentarians to ensure good legislation to put to an end the act in the region. He called for transparency and accountability in the system.