President Nana Addo Dankwa Akufo-Addo has called on African leaders to urgently address the issue of illicit financial flows from the continent, emphasizing the need to prevent Africa from losing valuable resources that could be used for development. He made these remarks during the Sixth African Union (AU) Mid-Year Coordination meeting in Accra on Sunday, which focuses on aligning AU policies with those of Regional Economic Communities (RECs) and Regional Mechanisms (RMs) to advance the Union’s integration agenda. Key topics include economic integration and interregional trade.
The theme of the meeting is “Educate an African Fit for the 21st Century: Building Resilient Education Systems for Increased Access to Inclusive and Lifelong Quality and Relevant Learning in Africa.” Attendees include African Heads of State and Government, leaders of regional economic communities, heads of regional mechanisms, AU commission members, and other stakeholders.
President Akufo-Addo highlighted the need to act on the findings of the Mbeki Commission on illicit financial flows from Africa, which was reported back in 2011. The commission revealed a large scale of resources being illegally taken out of the continent. “Despite the recommendations and the call to action, we have struggled to curb effectively these flows. The persistence of illicit financial flows undermines our ability to finance development projects, weakens governance structures and perpetuates inequality. It is imperative that we intensify our efforts to implement the Commission’s recommendations, strengthen our legal or regulatory frameworks and enhance international cooperation to combat these illicit activities. By reclaiming these lost resources, we can boost our development financing and ensure that the wealth generated within Africa remains in Africa to benefit our people,” he stated.
Additionally, President Akufo-Addo suggested that African countries should consider keeping 30 percent of their reserves in African multinational banks instead of foreign banks, where the reserves often have negative interest rates. “By retaining a sizable portion of our reserves within the continent, we can enhance the stability and liquidity of our financial systems, providing a stronger foundation for economic growth,” he said. He expressed hope that the EU Commission would soon complete its evaluation of this proposal, allowing for swift action.
AU Chairperson, Mr. Mohamed Ould Ghazouani, said the Union aims to raise about $100 billion to support export-oriented businesses in Africa to boost their production. He stressed the importance of effective coordination between the AU and regional blocs to achieve continental integration and meet the goals of Agenda 2063, which focuses on inclusive and sustainable socio-economic development over 50 years. Mr. Ghazouani added that strong economic integration among African countries would give the AU a larger presence at international organizations like the United Nations General Assembly, the International Monetary Fund, G20 nations, and the World Bank. He also noted that the African Continental Free Trade Area (AfCFTA) provides a good framework for enhancing bilateral trade and promoting economic integration in Africa.
Source: GNA
