To support this, the United Nations Conference on Trade and Development (UNCTAD); in its last report published on the evening of Monday, 28 September 2020; is categorical: “Africa is a net creditor of the rest of the world”.
Indeed, “… every year, the equivalent of 3.7% of Africa’s GDP leaves the continent illegally. From 2000 to 2015, 836 billion dollars disappeared..” The total stock of the continent’s external debt in 2018 was $770 billion. This means that Africa has “given” $66 billion more than it has received, making it “a net creditor of the rest of the world.”
This is how UNCTAD explains this. According to her, as many as $89 billion are leaving Africa through misused means known as “illicit leakage, illegal tax, and commercial practices and criminal activities…”. This amount is equal to official development assistance (ODA) and foreign direct investment (FDI) that the continent receives. However, Africa needs nearly $200 billion in investment to achieve the SDGs (Sustainable Development Goals), according to UNCTAD.
According to UNCTAD, “…these outflows cover both illicit leakage and illegal tax and commercial practices such as false invoicing of trade, criminal activities from illegal markets, corruption or theft”.
Moreover, in 2015, UNCTAD had identified $40 billion in illicit leakage related to the export of extractive products (mineral raw materials), of which “… 77% were concentrated in the gold supply chain, followed by diamonds (12%) and platinum (6%)”. However, the UN body believes that these figures probably do not reflect the phenomenon and its impact.
Following the observation and description of the phenomenon, UNCTAD recommends possible solutions; which solutions must include “…international tax cooperation and measures to combat corruption”.
Indeed, the authors of the UNCTAD report believe that; “the international community should devote more resources to capacity-building of the tax and customs authorities of developing countries”.
He warned: “Without decisive action, Africa will not be able to close this large funding gap to achieve the SDGs with current government revenues and development aid.”
To developing countries in general, particularly in Africa, to ensure that the recommendations of the United Nations Conference on Trade and Development become international laws applicable to everyone.
Source: Web Manager
