The African Development Bank (AfDB) has allocated a €1.2 million (US$1.3 million) grant to provide training to help resource-rich countries improve their mining revenues.
The support comes at a time when concerns are growing about revenue losses in resource-rich countries through trade-based money laundering (TBML) and profit shifting.
First of its kind
AfDB has approved the first of its kind grant from the Transitional Support Facility for the project on Financial Modelling for the Extractive Sector (FIMES). The project will be implemented in Africa’s transitional countries from 2020 to 2022.
The FIMES project will train policymakers responsible for the extractive sector to realise greater returns from natural resource investments in their countries.
The bank’s African Natural Resources Centre (ANRC) will implement the pilot project in eight beneficiary countries: Guinea, Liberia, Niger, Mali, Madagascar, South Sudan, Sierra Leone and Zimbabwe.
“The FIMES project will equip transitional countries with the right skills and knowledge to enhance domestic resource mobilisation for accelerated growth and sustainable development,” says Vanessa Ushie, manager of ANRC’s policy analysis division.
AfDB research shows that many African governments do not extensively use financial models to inform investment decisions, or monitor revenue flows from extractive industry concessions, leading to significant revenue losses for the state.
Categories: Trade Based Financial crimes News