'Illicit Financial Flows' Putting Needed Water Projects at Risk
Thanks to growing investor interest, increasing respect for democratic reforms, and its vast food production potential, the Africa Rising narrative is only getting better.
But Africa’s development success story will only be complete when the continent plugs the hemorrhaging of its financial resources badly needed for its own development. Africa is losing an estimated 50 billion dollars annually through illicit financial flows (IFFs) — half of all global losses and the equivalent of Morocco’s Gross Domestic Product (GDP).
According to the World Bank, IFFs refer to the deliberate loss of financial resources through under-invoicing, which researchers say is a blot on the ‘Africa Rising’ narrative. Worst, IFFs are depriving Africans of needed resources to access better food, education and health care. Despite a decline in the prevalence of undernourishment in Sub-Saharan Africa, the World Food Programme says the region still has the highest percentage of population going hungry, with one in four persons undernourished.