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Thursday 25 January 2018

Africa loses $148 bln to corruption yearly

As the issue of corruption in the continent of Africa takes a center stage, a report by the United Nations Economic Commission for Africa (UNECA) has shown that around $148 billion is lost to the scourage yearly.Image result for Africa
Vera Songwe, the Executive Secretary of the UNECA said on Thursday that the money was lost through various fraudulent activities across the continent.
$148 billion is drained out of the continent through various corrupt activities, and the acts represent about 25 percent of Africa’s average GDP,” Songwa said in Addis Ababa.
According to her, corruption is the major sources and elements of financial flows which drains tremendous resources from the continent.
The continent loses between $50 billion and $80 billion a year due to illicit financial flows, said Songwe quoting a report of president Mbeki’s high-level panel on illicit financial flow (IFF)
For the continent that desperately requires substantial financial resources to meet its extensive development needs, including in filling its huge infrastructure gap, such a significant amount of financial resources leakage through IFF and various forms of corrupt practices is definitely something that needs to be fought with every energy that can be mustered, she added.
Africa’s development has been in sharp decline over the past several years, she said, nothing that domestically generated resources are expected to play a more prominent role in Africa’s development, including in meeting the 2030 sustainable development goals and the aspirations embodied in Agenda 2063.
Africa will register an average economic growth of 3.5 and 3.7 this year and next year amid high prevalence of poverty at about an average of 40 percent, the UNECA scribe said..
She said the growth will be supported by more favourable domestic conditions, including the restoration of oil production in a number of countries and the expected recovery, in 2018 and 2019, of the economies of Egypt, Nigeria and South Africa, Africa’s three largest economies.
“However, adjusting for population growth, the projected economic growth remains inadequate for Africa to make significant progress towards the sustainable development goals (SDGs), in particular the eradication of poverty and hunger. Although the poverty level is reducing, it is still intolerably high at about an average of 40 percent for the continent,” she added.
Songwe noted the need to upscale efforts at structural reforms, for prudent economic management and promoting regional integration.

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