President Nana Addo Dankwa Akufo-Addo has urged his fellow African leaders to act decisively and swiftly to stem the tide of illicit financial outflows from the continent.
Addressing a gathering at the Sixth African Union (AU) Mid-Year Coordination meeting, President Akufo-Addo emphasized the need for immediate and concerted efforts to tackle this issue, which is siphoning off substantial resources that could otherwise be utilized for Africa’s development.
President Akufo-Addo emphasized the critical need for African nations to pay serious attention to the issue of illicit financial flows (IFFs) and to take concrete steps to address it. He pointed out that these outflows are depriving the continent of significant resources that could be used to support development projects.
“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.”
President Nana Addo Dankwa Akufo-Addo
The President stressed the importance of implementing the findings of the Mbeki Commission on illicit financial flows from Africa, which were published in 2011. The commission reported an alarming scale at which resources were being illegally siphoned out of the continent.
“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.”
President Nana Addo Dankwa Akufo-Addo
In addition to addressing IFFs, President Akufo-Addo proposed that African countries should deposit 30 percent of their reserves in African multinational banks rather than foreign ones. He argued that retaining these resources within the continent would enhance the stability and liquidity of Africa’s financial systems.
The President expressed optimism that this approach would empower African banks to support large-scale development projects and create a more resilient financial ecosystem, less dependent on external financial institutions.
“I am hopeful that the EU Commission will complete its evaluation of the proposal soon, so that action can be taken on it as quickly as possible,” President Akufo-Addo added.
Supporting Export-Oriented Businesses
In his address, AU Chairperson Mr. Mohamed Ould Ghazouani highlighted the Union’s aim to raise about $100 billion to support export-oriented businesses on the continent.
He noted that effective coordination between the AU and regional blocs is critical for establishing continental integration, which would contribute to achieving Agenda 2063. This agenda aims for inclusive and sustainable socio-economic development over a 50-year period.
“A strong economic integration among African countries would enable the AU to have a more significant presence at international forums such as the United Nations General Assembly, the International Monetary Fund, G20 nations, and the World Bank.”
Mr. Mohamed Ould Ghazouani, AU Chairperson
Mr. Ghazouani added that the African Continental Free Trade Area (AfCFTA) provides a conducive framework for African countries to enhance bilateral trade and promote economic integration.
The Sixth AU Mid-Year Coordination Meeting, where President Akufo-Addo made his remarks, aims to harmonize the AU’s policies with those of the Regional Economic Communities (RECs) and the Regional Mechanisms (RMs) to deepen the Union’s integration agenda.
The meeting, themed “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,” focuses on pressing issues such as economic integration, interregional trade, and operations.
A host of African Heads of State and Governments, the heads of regional economic communities, the heads of regional mechanisms, and members of the AU commission, as well as continental stakeholders, are participating in the meeting.
This gathering underscore the collective commitment of African leaders to tackle the challenges facing the continent, from illicit financial flows to education and economic integration.
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