My previous post ended with a question, who gets the benefits from all African natural resources? The point was to understand the paradox of having at the same time so much natural resources and a very high human poverty on the continent. In other words, Africans continue to see their environment exploited and transformed every day without any substantial compensation to their daily life, something is wrong.

In 2015, a report on Illicit Financial Flow (IFF) stated that Africa is losing yearly more than $50 billion in illicit financial outflows. This includes tax abuse, market abuse, corruptions, and money laundering. As quoted by Mbeki, “illicit financial outflows whose source is Africa end up somewhere in the rest of the world.”[i] That is where the product of African resources is hidden. It is important to note that this amount higher than all inflows received as development assistance in Africa. Basically, if stopped, Africa can finance its own development without any foreign help!

In order to change the trend and give the chance to the continent to take advantage over its resources, African governments will need the support from the international community. For example, a strict control over offshore companies and tax haven may make difficult the outflow and keep on the continent what belongs to the continent. In the meantime, African governments is required to undertake deep reforms promoting transparency and the rule of the law, and combatting corruption and nepotism.

This is the way Africa will be able to reach ambitious objectives such as reducing inequalities and poverty, promoting sustainable development, social justice, and equal opportunities.

[i]The Illicit Financial Flows Report Commissioned by AU/ECA Conference of Ministers of Finance, Planning, and Economic Development. Retrieved from https://www.uneca.org/sites/default/files/PublicationFiles/iff_main_report_26feb_en.pdf

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