African Countries Lose $80bn Yearly To Illicit Financial Flows

African Countries Lose $80bn Yearly To Illicit Financial Flows

By Tunde Osho

Africa countries lose in excess of $80 billion annually through illicit financial flows (IFF) and tax haven from the mining industry alone.

The coordinator of the African Minerals Development Centre (AMDC), Dr. Kojo Busia made this revelation during a High-Level meeting of the Ghana National Suppliers Development Programme (NSDP) put together by the African Minerals Development Centre, the African Centre for Economic Transformation (ACET), German Cooperation.

Ghana’s Minister for Lands and Natural Resources, John-Peter Amewu reiterated the effort government is making through its flagship one district, one factory program to create jobs for the youth in the mining industry but in a sustainable and legal way.

He bemoaned the current nature of illegal mining in Ghana and said government will not relent in its efforts to clamp down on illegal mining operators by totally destroying their business.

Similarly, Dr. Kojo Busia stressed that the ADMC will support the government of Ghana one district, one factory policy because it is in sync with the industrialization policy of the African Union and the African Minerals Development Centre.

The Africa Mining Vision was adopted by the African Union member states in 2009 as the continental framework for the development of the minerals sector in Africa.

According to Dr. Busia, UNECA estimates that between 2000-2010, more than half of Illicit financial flows from Africa came from the extractive industry. This represents 56.2%.

He further stated that the Africa Mineral Development Centre will finalize a report on the funding of Ghana’s National Suppliers Development Programme, Define and pursue an institutional environment, define the roles of all Stakeholders with a National Supply Development Agenda.

“Africa is helping to industrialize the rest of the world rather than using it to better its own,” Dr. Busia said.

He further stated that “$80 billion is lost in illicit financial flows annually in Africa through the extractive industry and tax haven which is not accounted for which the rest of the world use to develop itself.”

Prof. Gyan-Baffour, Minister for Planning presenting a keynote address at the official launch of the National Suppliers Development Programme on behalf of the Vice President of Ghana, said” Government is developing a programme to help professional suppliers.

This government is laying down the foundation to change the economic transformation of this country.”

He promised government will replace the red cup with a red tape to prevent Corruption in the mining industry.