African leaders speak out against illicit financial flows

Several African leaders and former leaders are urging the continent’s governments to make firm moves to counter illicit fund flows (IFFs).

The leaders were speaking in Kigali, Rwanda, earlier his month during the fifth African Leadership Forum.

Rethink needed

Former president of Tanzania, Benjamin Mkapa, urged African leaders to be innovative in combating IFFs by rethinking their countries’ economic development models.

Mkapa, who organised the forum, said that to confront the problem of IFFs, it was important to firmly tackle people and organisations complicit in channelling money out of Africa’s legitimate economies.

Tougher stance

The former president called for tougher regulations and monitoring of financial institutions, customs systems and tax authorities as well as an end to what he described as the “laxity of other state organs”.

“Governments should encourage innovation and private initiatives but not be an obstacle to enterprises,” he added.

Other comments

Responding to the point that Africa may well lose more through IFFs than it receives in development aid, Rwanda’s President Paul Kagame told the forum that Africa should finance its own development by ensuring public funds are properly captured and spent on social and economic development.

Former president of Somalia, Hassan Sheikh Mohamud said it was a priority for fragile states to adopt systems whereby the proceeds of natural resource exports are retained in states’ coffers.

Categories: Trade Based Financial crimes News

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