Latest news with #illicitFinancialFlows
Zawya
23-06-2025
- Business
- Zawya
Central African Republic : African Development Bank Strengthens Capacity to Tackle Illicit Financial Flows and Manage Resource-backed Loans
The African Development Bank Group ( has successfully concluded a high-level workshop and policy dialogue aimed at enhancing the Central Africa Republic's capacity to combat illicit financial flows (IFFs) and improve the governance of resource-backed loans. Held in Bangui from 10-13 June 2025 under the theme ' Harnessing Africa's Wealth: Curbing Illicit Financial Flows for Resilient Growth and Development, ' the four-day event brought together 80 officials from key government ministries, including Finance, Economy, Planning, Environment, Mines and Geology – as well as civil society, the private sector, and local communities. The sessions were convened by the African Development Institute (ADI) ( and the Natural Resources Management and Investment Centre (ECNR) ( as part of the Bank's GONAT initiative, which supports improved natural resource governance in fragile and transitional states. High-level panelists included Prof. Richard Filakota, Minister of Economy, Planning and International Cooperation who also serves as the Bank's Governor for the Central African Republic; Mr. Rufin Benam Beltoungou, Minister of Mines and Geology; and Prof. Chantal Laure Djebebe, Minister and Advisor to the Prime Minister on natural resources. Illicit financial flows are a major challenge across the continent, draining billions of dollars annually and severely constraining the ability of African countries to mobilize domestic resources for development. 'The Central African Republic is rich in natural resources – gold, diamonds, uranium, copper, forests, among others. However, without enhanced oversight, institutional capacity, and sound strategic planning, these resources can become a source of political instability, illicit activities, and unsustainable debt,' warned Minister Beltoungou. Workshop participants emphasized the growing use of resource-backed loans – facilities collateralized by natural resources – to finance infrastructure development. While these instruments can unlock critical funding, they also pose risks. 'Resource-backed loans are loans collateralized by natural resources and can help finance infrastructure such as roads, hospitals, and schools. However, caution is needed in managing repayment conditions, especially when a country lacks full control over its resource accounting,' emphasized Médard Goudozoui, a geological engineer and training beneficiary. The capacity-building sessions introduced a suite of practical tools and analytical methods for detecting and addressing IFFs in the Central African Republic. 'We explored techniques such as the Partner Country Method, trade misinvoicing, and international indices like the Financial Secrecy Index and the Corruption Perception Index – all of which help identify discrepancies between export declarations and customs records in partner countries,' noted Fanta Mariette Samba-Vomi, a geological engineer and Director of the Mining Cadastre. According to her, such tools are critical in detecting anomalies related to under- or over-valuation of exported resources – as often seen in the gold and diamond sectors in the CAR. Gender inclusion in governance processes was also featured during the workshop. 'We welcome the GONAT project's focus on inclusive governance, with a target of at least 40% female participation. As a Bank, we recognize that transformative and sustainable change is only possible when the voices of women and local communities are integrated into policy formulation processes,' said Mamady Souaré, Country Manager of the African Development Bank Group in the Central African Republic. Echoing this, Alexia Molotouala, Head of Division at the Permanent Secretariat of the Kimberley Process, stated: 'Increasing women's involvement is critical because they play a key role in affected communities. Their participation enhances transparency, fairness, and policy effectiveness. Inclusive governance also promotes social cohesion and sustainable development.' Dr. Eric Ogunleye, Director of the African Development Institute emphasized the broader impact of the sessions. 'It is our firm belief that the knowledge and tools acquired will go a long way in fostering stronger oversight of resource-backed loans and better governance of extractive resources.' Distributed by APO Group on behalf of African Development Bank Group (AfDB). Contact: Solange Kamuanga-Tossou Principal Regional Communication Officer African Development Bank media@ About the GONAT Project: GONAT is a flagship initiative of the African Development Bank Group. Designed to improve governance in the natural resources sector to facilitate domestic resource mobilization in fragile and transition states, the project specifically targets the Central African Republic, Chad, the Democratic Republic of Congo, Mozambique, Sierra Leone, and Zimbabwe. Natural resource sectors covered under GONAT include oil, gas, minerals, forestry, fisheries, and wildlife. About the African Development Bank Group: The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information:
Mail & Guardian
20-06-2025
- Business
- Mail & Guardian
African tax awakening: Reclaiming our revenue, reclaiming our voice
The African Tax Administration Forum was created to stop Africa from bleeding money through illicit financial flows, loopholes and skewed tax treaties. Graphic: John McCann/M&G Fifteen years ago, as African governments struggled with rising development needs and shrinking fiscal space, we acknowledged an uncomfortable truth: Africa was bleeding revenue. Illicit financial flows, legal loopholes and tax treaties skewed against our interests were draining the continent. What we needed was a bold, continental response, technically capable, politically grounded and unapologetically African. That's why we created the African Tax Administration Forum (ATAF). What began in 2009 as a conversation in Pretoria about taxation, sovereignty and state-building soon evolved into a movement. I was then a group executive at the South African Revenue Service (Sars), part of a small team determined to build something that would outlast us. By the time the ATAF was formally launched in Uganda's capital Kampala, 25 countries had already signed up. Today, we are 44 strong. Our early structure mattered. The Executive Council brought together seasoned leaders like Mary Baine of Rwanda and Daniel Ablorh-Quarcoo of Ghana, professionals who had long understood the political economy of taxation in Africa. We weren't there to imitate international models. We were there to build something from within. Since our formation, we've helped member countries reform laws, build audit capacity and navigate international tax policy. ATAF-supported work with the Zambia Revenue Authority, for example, helped recover more than $64 million in tax from the mining sector between 2020 and 2022, money that funds schools, hospitals and infrastructure. In Uganda, we supported the audit of its vital coffee sector, recovering $79 million in reassessed taxes. Importantly, we have always taken an African-to-African approach. When Rwanda needed support on revenue forecasting, it was Sars that provided it. When Mauritius began implementing digital taxation, lessons were shared from across the continent. These peer-based interventions were not just about capacity, they were about building trust, building relationships and building a new tradition of collaboration. The ATAF was never just about numbers. It was about power. For decades, Africa was expected to receive decisions, not shape them. I've sat in too many rooms where our voices were noted but not counted. The ATAF changed that. We made our presence felt in the Organisation for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Sharing, or Beps. We stood behind the call for a UN tax convention. And while we didn't always get the deal we deserved, we were no longer on the margins. We were in the room and we stayed there. Along the way, we built infrastructure: the ATAF Tax Academy, a research network focused on African data, and the Women in Tax Network that centres equity in policy conversations. These weren't symbolic add-ons, they were designed to shift power from outside actors to African experts. Today, the challenges have evolved. Digitalisation, climate finance, AI and regional integration bring new tax implications. The ATAF is responding by developing a tax technology innovation hub — our way of future-proofing the fiscal sovereignty of our member states. Our work with the AU and the African Development Bank is expanding and we are gearing up to offer a new generation of tools and strategies that meet the moment. We also understand the geopolitical context. The return of trade tariffs, the rise of economic nationalism and shifts in multilateralism all affect Africa's fiscal future. These trends might not speak the language of tax, but they are tax, hidden in pricing structures, supply chains and new power blocs. That's why the ATAF's role is more relevant than ever. As South Africa prepares to host the G20, the world's attention will briefly turn to Africa. This is our chance not just to be visible but to be consequential. The ATAF stands ready to provide technical depth, policy direction and a platform for a united African voice. For me, this journey has been about African success, African belief and building a good African institution. I've seen what's possible when African countries work together with courage, competence and clarity. To the next generation of African tax leaders I want to say this: 'You belong in the room. Be bold. Be prepared. Build coalitions. Ask hard questions. And, above all, keep our agenda centred on justice, dignity and sovereignty and work hard to obtain results.' The ATAF proves that African collaboration isn't just possible, it's powerful. We will tax, we will govern and we will build on our own terms. This is the African tax awakening. And it has only just begun. Logan Wort is the executive secretary of the African Tax Administration Forum.
