Long a cry from development agencies, NGOs and such, capital flight should be framed in two categories: 1) lack of political leadership, and 2) an economic reality.
FABA efforts must realize their own leaders are the source of capital flight………….HK
How Capital Flight is undermining Africa’s Development
Capital flight is a major way in which African Countries have been forced into poverty.
According to Forum Syd, 2011, between US$ 1.26-1.44 trillion disappear from Africa every year ending up in tax havens facilitated by Multinational companies. The sum of money that leaves developing countries each year as unreported capital outflows, referred to as illicit capital, amounts to 10 times the annual global aid flows and twice the debt developing countries pay each year.
Forum Syd is an international non-governmental organization working with people and people’s right. Some of the 15 African countries with the highest amounts of capital flight include Tanzania, Mozambique and Ghana. For example, between 2002-2006, Tanzania alone lost up to USD 660m per year in capital flight. In comparison, the health budget of Tanzania amounts to USD 7.6 million and women die every day while giving birth.
These lost monies could significantly contribute to development by way of combating hunger, disease and reduce poverty.
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