President Nana Akufo-Addo of Ghana is leading the charge for African leaders to take urgent action to curb illicit financial outflows from the continent.
Speaking at the Sixth African Union (AU) Mid-Year Coordination meeting in Accra, President Akufo-Addo emphasized the need to address the situation, which is draining Africa of vital resources that could fuel its development.
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,” seeks to align the AU’s policies with Regional Economic Communities (RECs) and Regional Mechanisms (RMs) to advance the Union’s integration agenda.
President Akufo-Addo stressed the importance of implementing the recommendations of the Mbeki Commission on illicit financial flows, which highlighted the massive scale of illegal resource outflows from Africa. He highlighted that these outflows impede the continent’s ability to finance development projects, weaken governance structures, and perpetuate inequality.
In addition, President Akufo-Addo proposed that African countries deposit 30% of their reserves in African multinational banks, instead of foreign institutions. This move aims to bolster the continent’s self-reliance and enhance the capacity of its financial institutions to support large-scale development projects.
Furthermore, AU Chairperson Mr. Mohamed Ould Ghazouani mentioned the Union’s ambition to raise $100 billion to support export-oriented businesses in Africa and facilitate economic integration on the continent. Effective coordination between the AU and regional blocs is seen as vital in achieving Agenda 2063, which aims for inclusive and sustainable socio-economic development over the next 50 years.
Mr. Ghazouani highlighted that strong economic integration among African countries would enable the AU to have a stronger presence on the global stage, including at the United Nations General Assembly, the International Monetary Fund, G20 nations, and the World Bank. He also lauded the African Continental Free Trade Area (AfCFTA) for providing a platform for African nations to enhance bilateral trade and promote economic integration.
President Akufo-Addo’s call to action and proposals at the AU meeting underscore the commitment of African leaders to combat illicit financial outflows, strengthen regional integration, and drive sustainable development across the continent.
