Illicit financial flows rob Africa and its people of their prospects, undermining transparency and accountability and eroding trust in African institutions, said UNCTAD Secretary-General Mukhisa Kituyi. The agency said that total illicit capital flight from Africa amounted to USD 836 billion between 2000 and 2015.
The largest component of illicit capital flights from Africa, totaling USD 40 billion in 2015, was related to extractive commodities more than three-fourths of it in gold alone, followed by diamonds and platinum, UNCTAD said. It cautioned the data was incomplete and such figures were likely an underestimate of the true tally.
Illegal capital outflows from three countries Nigeria, Egypt and South Africa accounted for more than four-fifths of the total annually during that three-year span, with Nigeria alone making up nearly half of that, according to UNCTAD calculations. Cracking down on such illegal outflows could help African countries retain capital for investment in roads, railways, schools, and healthcare, the agency said.
UNCTAD said African countries generally aren't doing enough to reform the international tax system in ways that could help, and said local judicial authorities often lack proper tools to combat tax evasion.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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