According to a United Nations study, Africa loses about $89 billion a year in illegal financial flows such as tax evasion.
That's more than the continent receives
government development aid.
A report released on Monday by the United
Nations Conference on Trade and Development called Africa a "net lender to
the world."
Exports of goods such as gold, diamonds
and platinum account for half of the total lost each year. Under fraudulent
payment of taxes and royalties, companies declare the value of exports.
The agency says understanding the true
value of a commodity deprives developing countries of foreign exchange and tax
revenues.
Economists argue that despite being
dependent on aid, Africa is actually a net exporter of capital due to tax cuts
and people hiding cash in tax havens.
The lost funds could be used’ to provide
social services such as staff hospitals that are under pressure from the
coronavirus epidemic.
Activists say countries should introduce
stricter rules on multinational companies and ways to return profits.
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