Zimpapers Logo

African governments should design punitive and effective laws to curtail illicit capital flows, experts have said. According to the experts, Africa loses over $100 billion annually through illicit financial outflows, profit repatriation and bad treaties signed between governments and multinationals. Speaking ahead of the 9th Joint Annual Ministerial meeting for finance ministers across the continent which began on Monday in Addis Ababa, Ethiopia Josephine Uwamariya, Action Aid International-Rwanda country director, said there was need for transparent systems to ensure proper accountability, noting that these were some of “the tools that will enforce tax justice on the continent”.

She argued that promoting tax justice was essential to boost public service delivery and thus reduce poverty on the continent. “Therefore, we have to make sure that the incentives given to investors are targeted and designed to improve service delivery as well as promote sustainable economic growth on the continent.”

Finance ministers deliberated on strategic approaches that would help in the implementation, monitoring and evaluation of agenda 2063, and the Sustainable Development Goals. They are expected to launch the Economic Commission for Africa’s flagship Economic Report for Africa 2016 report. Mr Luckystar Miyandazi, Tax Power Africa coordinator for Action Aid International, said incentives given to investors must be designed in a way that does not translate into tax losses.

“A lot of money is being lost by the continent because some multilateral companies take advantage of loopholes in our laws to dodge or avoid taxes, while others siphon out money by corrupting government officials.

Meanwhile, Anthony Mothae Maruping, the commissioner economic affairs at the African Union, said the commission was designing a transformative blueprint to support the fight against illicit financial flows. – Wires-Business Reporter