Adnan Adams Mohammed
Ghana’s economy is currently among high rated countries in the African continent battling significant revenue losses through tax evasion, tax exemptions, and systemic tax inefficiencies.
This, according to Tax Justice Network Africa, Ghana looses approximately US$1.4 billion annually due to illicit financial flows. This amount could do alot to improve the standard of living of the people.
Also, according to a report by the United Nations Conference on Trade and Development (UNCTAD), the African continent looses nearly US$89 billion annually due to illicit financial flows. The report identifies Africa as a ‘net creditor to the world,’ indicating a substantial outflow of capital from the continent. The alarming situation has flamed passions and concerns of some politicians and civil society organizations to raise awareness while proffering solutions.
“Our governments must also acknowledge that the problem is a major issue, and I think the biggest challenge in our generation now is the issue of illicit financial flow”, Francis Kairu, Strategic Programmes Director at TJNA, in an interview with journalists during the African Parliamentary Network on Illicit Financial Flows and Taxation Summit held in Ghana, emphasised the urgency of addressing these issues.
“Ghana is one of the countries that loses the most because you have natural resources, you have a huge population that is being taxed.”
Ghana is one of the countries that grant tax exemptions and tax holidays every other day.”
However, tax experts and some economists attribute almost half of the total financial loss to the situation of ‘under-declaration’ of export values for commodities such as gold, diamond, and platinum.
Companies engaged in such practices are accused of evading taxes and royalties, exacerbating the continent’s financial drain.
Also speaking at the event, Joseph Osei-Owusu, first Deputy Speaker of Parliament of Ghana, indicated that: “If we allow so much illicit outflow when our public needs, need to invest in public infrastructure, unfortunately, we will borrow and not provide services.”
“Illicit financial flow is a global phenomenon, but a dire situation in the country not because of the staggering figures,” he said.
APNIFFT is a flagship programme coordinated by Tax Justice Network Africa (TJNA) with an overall objective to provide an opportunity for its members, the African legislators, to strategise, learn from each other and build their capacities in tackling illicit financial flows (IFFs) and tax injustices in the continent.
APNIFFT was first conceptualised in 2015 and eventually launched in 2017 by TJNA. Since its inception, APNIFFT’s operational strategy has focused on national-level legislative interventions to combat the continent’s IFF issues.
This has been operationalised through country-based (National) parliamentary caucuses that now serve as a basic unit of engagement and mobilisation of Members of Parliament (MPs). These basic units then combine to form regional caucuses, based on membership of regional economic councils, to form the continental caucus.
The network currently boasts a total of 702 members from 41 countries in Africa.
It meets with MPs and members of Civil Society Organisations through capacity-building sessions and meetings to fast-track Africa’s conversation and action around illicit financial flows.
Mr Osei-Owusu, also the New Patriotic Party (NPP) MP for Bekwai said laws were not the weakest thing but their implementation.
He expressed concerns at the high level the continent was experiencing financial outflows which were perpetuating the kind of damage the slave trade had had done to Africa.
