UN CLAIMS AFRICA LOSES $88.6-B YEARLY TO ILLICIT FUND OUTFLOWS

The United Nations (UN) has claimed that from 2000 to 2015, the total illicit capital flight from Africa reached $836 billion, which is more than what the continent receives in development aid, teleSUR reported.

According to a report by United Nations Conference on Trade and Development (UNCTAD), the illicit financial flows are "movements of money and assets across borders which are illegal in source, transfer or use."

The $88.6 million represent about 3.7 percent of Africa's gross domestic product (GDP). "Illicit financial flows rob Africa and its people of their prospects, undermining transparency and accountability and eroding trust in African institutions," UNCTAD Secretary-General Mukhisa Kituyi said.

The report highlights that mining and telecommunications and the digital economy are among the most vulnerable sectors to illicit financial flows. Furthermore, UNCTAD explains that these outflows "include illicit capital flight, tax and commercial practices like mis-invoicing of trade shipments and criminal activities such as illegal markets, corruption, or theft." The illicit financial flows represent "a major drain" on capital revenue in Africa as it jeopardizes its prospects of achieving Sustainable Development Goals.

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