Illegal cash flows cost Africa billions - UN report

According to a United Nations study, Africa loses about $89 billion a year in illegal financial flows such as tax evasion.

Illegal cash flows cost Africa billions - UN report

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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