AFDB, CoDA, Launch $5.9m Project to Stem Illicit Financial Flows from Africa

Ugo Aliogo

The African Development Bank (AfDB) and the Coalition for Dialogue on Africa (CoDA) have officially launched a three-year support project to improve regional coherent and coordinated response to illicit financial flows.

The project would help African stakeholders actively engaged in stemming such flows to improve domestic revenue mobilisation in the continent.

In a statement, it was disclosed that the project aims to improve regional coordination of combating illicit financial flows and the oversight and accountability of public finances, for optimal revenue mobilisation and management in African countries.

 It revealed that the project would support the coordinated implementation of recommendations of the high-level panel on Illicit financial flows and the implementation of joint strategies and initiatives related to international taxation.

The grant would support CoDA in its role as the secretariat of both the AU High-Level Panel on IFFs, the Joint Secretariat of the Consortium to Stem IFFs from Africa, and the annual African Fiscal Policy Forum.

 The statement further explained that the support would foster a coherent African response to illicit flows, in line with the AU Assembly Special Declaration on IFFs passed in January, 2015, adding that it would advance Africa’s continent-wide asset recovery agenda encapsulated in the Common African Position on Asset Recovery (CAPAR) adopted in February 2020.

 The statement noted that this would be carried out by CoDA, the African Union Commission Departments of Economic Development, Trade, Tourism, Industry and Minerals and Political Affairs, Peace and Security Department, in collaboration with other national, regional and global actors.

According to the statement, “The project targets selected African Development Bank member countries, with a particular emphasis on public sector capacities in low-income countries, to reinforce resilience via training, policy research and advocacy activities.

“The Bank’s support is in line with the objectives of its Strategy for Economic Governance in Africa (2021 – 2025), its policy and strategic framework and action plan to prevent Illicit Financial Flows in Africa (2017 – 2021, extended to 2023), and ‘High Five objective that aims to ‘Improve the quality of life’ for the people of Africa. It is consistent with ongoing similar support to regional organisations to stem illicit flows from the African continent.”

AfDB’s Deputy Director-General for Eastern Africa Regional and Business Delivery Office, Abdul Kamara, expressed satisfaction with the project, noting that it is in line with the high-level panel’s mandate to promote a coordinated response of the Bank’s regional member countries in ensuring that policies and practices are mobilised in addressing financial crime, tax avoidance, money laundering.

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