Akufo-Addo warns African leaders: Illegal financial outflows hindering development

In a compelling address, President Nana Addo Dankwa Akufo-Addo of Ghana, who also serves as the African Union (AU) Champion on Financial Institutions, has called on African Leaders to work with a sense of urgency to stop the illicit financial outflows from the continent.

The outgoing president called on his colleagues to pay serious attention to and arrest the situation, which was depriving Africa of significant resources that could be used to support its development.

The President gave the charge at the opening of the Sixth African Union (AU) Mid-Year Coordination meeting in Accra on Sunday.

The meeting aims to harmonise the AU’s policies with those of the Regional Economic Communities (RECs) and the Regional Mechanisms (RMs) to deepen the Union’s integration agenda and deliberate on pressing interregional trade and operations.

The meeting is on the theme “Educate an African Fit for the 21st Century: Building Resilient Education Systems for Increased Access to Inclusive and Lifelong Quality and Relevant Learning in Africa.”

He said, “Despite the recommendations and the call to action, we have struggled to curb effectively these flows. The persistence of illicit financial flows undermines our ability to finance development projects, weakens governance structures and perpetuates inequality.

“It is imperative that we intensify our efforts to implement the Commission’s recommendations, strengthen our legal or regulatory frameworks and enhance international cooperation to combat these illicit activities.

“By reclaiming these lost resources, we can boost our development financing and ensure that the wealth generated within Africa remains in Africa to benefit our people,” he stated.

President Akufo-Addo stressed the need for the African Union to consider a proposal requiring African nations to deposit 30% of their reserves into African multinational banks, rather than leaving them in foreign banks earning little to no interest.

By doing so, he added, Africa can harness its resources to strengthen its financial institutions, enhance self-reliance, and boost economic capacity