• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Africa: Over $1 trillion lost through Illicit Financial Flows

3 years ago
in Business, Economy, highlights, Home, home-news, latest News
2 min read
0 0
0
109
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Africa: Over $1 trillion lost through Illicit Financial Flows

Over $1 trillion has been lost through Illicit Financial Flows (IFFs) from the African Continent in the last 50 years.

Currently, the continent is estimated to be losing more than $50 billion annually in IFFs.

Accounting for the loss through IFFs are commercial transactions (65%), organized criminal activities (30%) and corruption (5%).

A study conducted on the continent on the loss of funds through IFFs over a 39 year period revealed that approximately $854 billion has been moved out of Africa.

“Mineral and fuel producing African countries are losing and estimated $50 billion per annum through IFFs, other estimates show that approximately $854 billion has been moved out of Africa over a 39 year period, making Africa a net creditor to the rest of the world,” noted the study.

Another study on IFFs reveals that the continent within the period from 2003 to 2012 lost some $528.9 billion.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

According to the study, the developing world has lost in excess of $6.6 trillion in IFFs outflows between 2003 and 2012 alone with Sub-Saharan Africa losing some $528.9 billion.

Of the total funds lost, West Africa accounted for 38% of all IFFs from the African Continent.

North Africa, Central Africa, Eastern Africa and Southern Africa contributed to 28%, 10%, 11% and 13% respectively to IFFs from the continent.

IFFs refer to money that is illegally earned, transferred or utilised.

Touching on the subject, Dr Ali-Nakyea, a Tax Consultant and Senior Lecturer at the University of Ghana Law School, noted that some challenges in dealing with IFFs include poor resource governance models, weak tax administrations coupled with multinational tax avoidance schemes and tax havens beyond the influence of the government.

On the way forward in dealing with IFFs, he noted that government should strengthen the capacity of its financial institutions, particularly revenue authorities and the ministries responsible for negotiating mining and petroleum contacts to monitor transfer pricing, thin capitalisation among others.

Read: Africa needs $484 billion to address economic impact of Covid-19 – Adesina

Also, government should expeditiously develop a road map and action points for implementation of the key recommendations of the High Level Panel on IFFs from Africa.

Meanwhile, Ghana is said to have lost a cumulative amount of $14.39 billion over a ten year (2002 to 2011) period through trade mis-invoicing in the extractive Industry.

This is per a report by the African Centre for Energy Policy (ACEP) on illicit financial flows (IFFs) from the extractive sector.

The report further indicates that, if the time period is taken from 1960 to 2012, then IFFs through trade mis-invoicing amounts to $40 billion.

Trade mis-invoicing in the extractive sector, the report further states, occurs in the export of gold to other countries.

“About $6 billion worth of gold exports from Ghana to India, Dubai and Switzerland between 2013 and 2016 has not been reported and accounted for,” the report revealed.

Trade mis-invoicing which falls under illicit financial flows (IFFs) is the deliberate over-invoicing or under-invoicing of exports for the purpose of avoiding paying tax to the country.

Source: norvanreports
Tags: ACEPAfrica: Over $1 trillion lost through Illicit Financial FlowsghanaIllicit Financial Flows (IFFs)
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.