Capital Flight Undermining Africa

Emerging Markets Comments (2)

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.

Link to the article:

» Emerging Markets » Capital Flight Undermining Africa
On March 4, 2014

2 Responses to Capital Flight Undermining Africa

  1. The News Fly says:

    I want to thank to the efforts you have put into composing this blog post. I am hoping the same top-quality blog post from you in the upcoming as well. In fact your creative writing abilities have inspired me to get my own blog now. Truly the blogging is spreading its wings rapidly. Your write up is a good example of it.

  2. Actually I think this is among the most vital information for me. And i am glad reading your article. But want to remark on some general things, the web site style is ideal, the articles is really excellent. Thank you for sharing with us. I think it would be effective for all. Good job, cheers! invites you to read

Leave a Reply

Your email address will not be published. Required fields are marked *

« »