Wasted potential: Africa loses over $50 billion annually in illicit financial flows

Africa, the world’s poorest region, is losing over $50 billion a year in illegal transactions — an amount that could have been used to address the region’s glaring development needs.

This is according to a report on the region’s illicit financial flows — or money illegally earned, transferred or utilized — published early this week by a joint panel commissioned by the U.N. Economic Commission for Africa and the African Union. Putting a huge dent on African economy and development progress, IFFs are caused mainly by commercial tax evasion, trade misinvoicing, abusive transfer pricing and criminal activities including drug trade, human trafficking and illegal arms dealing as well as corruption and bribery.