CHRISTIAN AID: ‘ILLICIT’ CAPITAL FLIGHT IMPOVERISHING AFRICANS

‘..For every dollar coming in as official development aid, ten dollars flow out of Africa in illicit acts...’, Christian Aid Manager for East Africa, Dereje Alemayehu has said.

Dr Alemuyehu said this, at a Thomson Reuters Foundation Finance and Economic reporting course for journalists, in the Ugandan capital.

The illicit financial outflows are through transfer of profits, tax avoidance and evasion, commodity mis-pricing and transfer pricing by multi-national companies.

Dr Alemuyehu explained that from 2000 to 2009, illicit financial outflows from Africa were estimated at 333.8 billion dollars, depriving the continent of significant resources for social-economic development.

He said it is no use asking for increased aid without seeking means of stopping the outflow of huge amounts of financial resources.

‘..Africa takes lead in the ranking of sources of these illicit acts and as Christian Aid, we project future loses to grow by 22.5 per cent..,’ Dr Alemuyehu further explained.

Dr Alemuyehu strongly rebuked African leaders over this illicit act, demanding for their positive responsiveness over this matter.

 ‘...The notion that more resources flow out of Africa is now accepted, it is not disputed...

‘..We ask from African policy makers that they recognise that there are more resources from Africa leaving through illicit acts...

 ‘..Therefore, we ask that these acts be categorised as criminal or corruption offences..,’ Dr Alemuyehu added.

In a report, titled ILLICIT FINANCIAL FLOWS FROM LEAST DEVELOPED COUNTRIES 1990-2008, Global Financial Integrity, a US-based research and advocacy organisation, has also raised concern about this.

The report has also ranked Zambia 10^th, among Africa’s top sources of illicit capital outflows, at 6.8 billion dollars, equivalent to one and half times, the country’s current annual budget.

Zambia has proposed the setup of the Anti-Finance and Economic Crimes Commission, which is expected to stop acts of transfer pricing of copper, the country’s major export.