44% of Africa’s financial wealth is stacked offshore with tax revenue losses of €17bn

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Illicit financial flows in Africa is now estimated at between $50 billion and $80bn, and 44% of the continent’s financial wealth is thought to be held offshore, which corresponds to tax revenue losses of €17bn, the latest Tax Transparency in Africa report has revealed.

The report added that African countries have made great strides in strengthening commitments and capacity to achieve tax transparency and exchange information on illicit fund flows in 2019.

Tax Transparency in Africa 2020, produced by the Global Forum for Transparency and Exchange of Information for Tax Purposes, the African Union and African Tax Administration Forum (ATAF), in close partnership with the African Development Bank, noted the need for African countries to engage further in revenue mobilization, a concern sharpened by the backdrop of the ongoing global novel coronavirus pandemic.

The report which was published during a virtual launch yesterday provides comparable tax transparency statistics to aid decision makers to address illicit fund flows.

The 2020 report covers 32 global forum member countries and three non-members- Angola, Guinea Bissau and Malawi.

“This annual publication of the Tax Transparency in Africa is part of the various efforts of the continent to advance global tax transparency and exchange of information agenda in Africa in order to combat corruption, tax evasion, money laundering, fraud, base erosion, and profit shifting and illicit enrichment,” said Victor Harrison, African Union Commission Commissioner for Economic Affairs, in the report’s preface.

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