Africa is losing an estimated $88 billion each year to tax evasion, money laundering, and corruption, according to the African Union—nearly double the figure reported a decade ago. The system is perpetuated by multinational corporations shifting profits to tax havens and corrupt elites siphoning wealth offshore. Experts say these illicit financial flows not only strip governments of vital revenue for schools, hospitals, and infrastructure but also entrench corruption and weaken state capacity. While global initiatives like automatic bank data sharing and a new United Nations framework on tax justice offer hope, progress remains slow. Analysts warn that this financial drain is particularly catastrophic for resource-rich nations already burdened by high debt, as it deprives citizens of basic services and cripples development. They argue that for Africa to achieve fiscal sovereignty, it must figure out a way to curb these illicit flows.
DW
