Civil Society Organisations unveil campaign to curb illicit financial flows in Zambia, Africa

An African campaign, Stop The Bleeding, meant to curb Illicit Financial Flows (IFFs) from the region while ending tax holidays for big business and unfair tax incentives, has been launched in Zambia by three organisations.

The aim of the campaign, launched by the African Forum and Network on debt and Development (AFRODAD), in partnership with Centre for Trade Policy and Development (CTPD) and Civil Society Organization (CSO) Debt Alliance, is meant to have one voice in stopping IFFs.

While Zambia launched it on Friday in Lusaka, the campaign had already been launched in Tanzania, Uganda, Cameroon and Malawi. Speaking on behalf of the three organisations, CSO Debt Alliance Coordinator, Peter Mumba, said achieving the Sustainable Development Goals (SDGs) remained precarious as long as IFFs drained essential resources needed for human rights and supportable development.

Mumba noted that effectively curbing IFFs could secure an estimated US$90 billion annually, which is about 3.7 percent of Africa’s Gross Domestic Product (GDP). Specifically, for Zambia, he recalled that the United Nations Economic Commission for Africa reported a 10 percent GDP loss annually due to corporate tax evasion, with copper trade mis-invoicing accounting for 65 percent of all such incidents in Africa.

Read more: Study identifies shortcomings in G20 framework, calls for new sovereign debt restructuring mechanism

“According to the United Nations Conference on Trade and Development (UNCTAD), countries with high levels of IFFs spend significantly less on crucial sectors like health and education compared to countries with lower IFFs.

“This depletion of the tax base and the resulting discouragement of public and private investment hinder economic growth and sustainable development. Therefore, it is imperative that Africa adopts innovative methods to mobilize domestic resources and external private capital while combating IFFs,” Mumba said.

A day before the launch of the campaign, the three organisations held a conference on debt and development where African countries, including Zambia, were challenged to have critical discussions around strategising on how to broaden the tax base in the wake of debt repayments which require more resources.

AFRODAD Policy Analyst and Advocacy Officer, Shem Joshua, pointed out the need for these strategies as countries mobilised resources for debt repayments. Joshua said the forum advocated for broadening the tax base and not putting pressure on few individuals who were already paying tax.

“We have to make sure not to put pressure on individuals paying tax but put in place strategies to broaden the tax base.

“Most African countries do not have these strategies to get more resources and these are some of the questions which should be answered here at the conference,” he said.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.