African Parliamentarians To Combat Illicit Financial Flows

African Parliamentarians To Combat Illicit Financial Flows 

By MAXIMILLA WAFULA & PATRICK KIMANZI 

Kenyan Deputy Speaker Hon. Gladys Shollei

The Steering Committee of African Parliamentary Network on Illicit Financial Flows and Taxation (APNIFFT) 2023 and the  Tax Justice.

Network Africa  today  convened the  continental conference meeting  in Nairobi , Kenya to discuss on a matter of such an importance not only to Kenya but to the continent as a whole – that of tax and illicit financial flows.

Speaking during the conference, Deputy speaker hon. Gladys Shollei said  that  "countries with high illicit financial flows spend less on their agriculture sector – key sectors in all of their economies, and also spend less on gender equality ".

African economies have faced great challenges in the past few years including the economic 

shocks of the COVID-19 pandemic in 2020 and 2021, the impact of climate change, and the supply chain disruptions of the Ukraine- Russia conflict. The  meeting carried a timely theme, 'Africa’s Leadership in Combatting Illicit Financial Flows’. 

Dr. Khanyisile Tshabalala, Chairperson Steering Committee APNIFFT.

Dr. Khanyisile Tshabalala , Chairperson Steering Committee , APNIFFT  emphasized that  "African economies have remained resilient ,  according to the African Economic Outlook 2023 report the projected growth in real GDP in 2023 is expected to be higher than the 

initial 3.8% and is estimated to now be at 4.1%. " she said. 

The Africa We Want as well as those reflected in the Sustainable Development Goals, and the  ability to raise our own resources in order to achieve our development goals is critical, particularly in light of the times we currently find ourselves in  Africa. 

Our continent currently faces increased funding squeezes with a financing gap of over USD 200 billion annually as well increased challenges in accessing not only private finance, but oversea development assistance as well as such, there is need for us to improve our domestic resource  mobilisation efforts in Africa which currently sits at a median of 13% tax to GDP. This tax to GDP ratio which is the lowest compared to all other regions. Part of the reason for this is the pervasive issue of illicit financial flows. The UNCTAD/UNECA report of 2020 showed us that Africa could stand to gain 89 billion USD every year if we could address illicit financial flows. This is close to 4 percent of our continental GDP, and I have no doubt that all of us can imagine where, if we had additional resources, we direct this. In addition to the loss of financing, the issue of illicit financial flows has ripple effects into our economies. 

And so we are gathered here to discuss how to forge the way forward for Africa , this  gathering is filled with great leaders, change-makers and opportunity that gives honourable members, 

 to connect, share knowledge, and inspire each other with fresh ideas on the fight against illicit financial flows in Africa with the goal of transforming tax policies, challenging harmful investment practices, improving tax transparency, and restoring the sovereignty of natural resources to African countries.

Ends....