Illicit financial flows in Africa are a growing concern for tax experts, as they see loopholes in the definition allowing for money to be siphoned away from the continent, hindering its economic growth. These flows encompass illegal activities like tax evasion, bribery, and embezzlement, posing a threat to developing economies by draining resources and exacerbating poverty.
To combat this issue, experts are advocating for a broader definition of illicit financial flows to include all forms of financial misconduct, not just those that are illegal. International organizations like the G20, World Bank, and African Union Commission are working to define and address these flows, with a focus on enhancing transparency and cooperation.
The debate on defining illicit financial flows comes at a time when Africa is losing billions annually, impacting its ability to fund development projects and drive inclusive growth. Former South African President Thabo Mbeki is leading efforts to combat these flows, highlighting the need for comprehensive measures to tackle this issue. It’s essential to address all forms of illicit financial activities to ensure Africa’s economic stability and progress.
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