Illicit money flows pose Africa development dilemma
Subject Illicit money flows from Africa. Significance Illicit financial flows (IFFs) could cost sub-Saharan African (SSA) states up to 50 billion dollars per year in lost revenues, according to a high-level UN panel. The new report, commissioned by the African Union and SSA finance ministers, highlights the detrimental development consequences of IFFs -- in a context where many states are battling with declining commodity export revenues and rising debt burdens. Impacts In SSA states with weak macroeconomic fundamentals and rising debt servicing costs will exacerbate fiscal losses caused by IFFs. Nevertheless, the attractiveness of bond issuances as a form of cheap capital (with minimal conditions) means further issuances are likely. Yet buyers of SSA paper are likely to become more discerning, making it harder for issuers to borrow on favourable terms. Efforts to curtail poaching will be assisted by drone technology in Southern Africa, but their effective use risks community-level blowback.