Africa loses $89 bln a year to illicit financial flows, extractive commodities hit the most

African countries are losing $88.6 billion each year to illicit financial flows (IFFs), which is equivalent to 3.7% of the continent’s economic output, according to a report released by the United Nations.
The United Nations Conference on Trade and Development (UNCTAD)’s report released Monday shows that the IFFs originate mainly from extractive industries.
Of the estimated $40 billion of IFFs derived from extractive commodities in 2015, 77% were concentrated in the gold supply chain, followed by diamonds (12%) and platinum (6%).
“Illicit financial flows strip government treasuries of needed resources for development expenditure,” said UNCTAD secretary-general Mukhisa Kituyi. 
“The report’s findings confirm that such financial flows are high in Africa and have been increasing over time.”
The African continent lost $836 billion to illicit capital flight between 2000 and 2015, said UNCTAD.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished