Africa Loses $50 billion to Money Laundering and Tax Evasion

Due to tax evasion, money laundering and the flow of illegal funds, Africa is bleeding $50 billion every year which is a great concern to The United Nations (UN) and African Union (AU).  This issue was addressed during the second annual UN-AU conference which was held in Addis Ababa, Ethiopia on July 9th and 10th.  During the conference, the rise in armed groups and international terrorist organizations, such as the group Boko Haram in Nigeria, was noted and, because of these groups, the UN and AU will need more funds to enforce peace in the hopes of countering terrorism.

UN Secretary-General, Mr. António Guterres, urged the international community “to take action against the flow of illegal funds, money laundering and tax evasion, which cost Africa $50 billion every year.”  The UN has already made strides to improving peace in Africa by deploying peacekeeping missions in four countries in Africa; the Central African Republic (CAR), the Democratic Republic of the Congo (DRC), Mali and South Sudan.  However, due to the rise of armed groups, traditional peacekeeping motions can not be used which is why the UN chief is citing the need for more funding.

The UN chief also states that Africa as a whole “is increasingly moving in the direction of peace and enhanced security.  But we need to collaborate in such areas as peace and security.”  Steps moving towards peace and security will prove to be a key factor for Africa’s prosperity and ensuring that the UN will not fail in its dealings with the continent.


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