- Trust Africa says illicit flows depriving African countries revenue
KOMBO KACHEMBA
Accra, Ghana
MULTINATIONAL corporations have for decades siphoned Africa’s mineral wealth while evading taxes, with Zambia among the worst affected, says Trust Africa executive director Ebrima Sall.
Speaking at the 5th African Conference on Debt and Development (AfCoDD V) in Accra, Dr Sall said mining giants use profit-shifting and misinvoicing to avoid paying taxes.
“These companies claim they are not making profits, yet evidence shows substantial revenues are being moved to offshore accounts and tax havens,” he said.
He warned that illicit financial flows, estimated at nearly US$100 billion annually, deprive governments of resources for schools, hospitals and infrastructure, forcing them to borrow, worsening the debt crisis.
“Debt restructuring merely eases pressure. What Africa needs is outright cancellation of foreign debt, especially given the historical exploitation that built Western economies at Africa’s expense,” Dr Sall said, citing post-World War II debt relief to Germany as a precedent.
He said Africa has adopted measures such as African Mining Vision and Common African Position on Asset Recovery, but implementation remains weak.
Strengthening tax authorities and political will were key to stopping the plunder, he added.
AfCoDD V, held under the theme ‘Africa’s debt crisis: A reparations and reparative justice framework analysis,’ drew policy analysts, researchers, civil society groups and African institutions to push for strategies rooted in justice and equity.
“What we lose through illicit flows far exceeds what we receive in aid. If we plug the holes, we won’t need to beg or borrow,” Dr Sall said.