Illicit Financial Flows in Africa: Major Initiatives, Achievements and Perspectives

Over the past two decades, illicit financial flows (IFFs) have ceased to be a mere “statistical anomaly” and have become a major political issue at the heart of debates on Africa’s economic sovereignty. Their magnitude has forced governments, regional institutions and international actors to react. Initiatives have emerged—sometimes ambitious, sometimes limited—but all reflect a growing awareness: without a collective and structured response, the continent will remain trapped in a silent hemorrhage.

This article reviews the main initiatives undertaken, the results they have delivered, and the challenges that continue to undermine their effectiveness. It concludes with perspectives that highlight the need to consolidate and deepen these achievements for Africa’s future.

I. Pan-African Initiatives: The Leadership of the African Union and the RECs

The first line of response to IFFs came from African institutions themselves. The African Union (AU) and the Regional Economic Communities (RECs) recognized the gravity of the problem and launched structuring initiatives to make the fight against IFFs a continental priority.

The High-Level Panel on IFFs (2011–2015)

In 2011, the AU and the United Nations Economic Commission for Africa (UNECA) established the High-Level Panel on Illicit Financial Flows, chaired by Thabo Mbeki. Its 2015 report remains a reference, estimating annual losses between USD 50 and 88 billion, mainly due to trade misinvoicing (65%), organized crime (30%) and corruption (5%)¹. Its recommendations—beneficial ownership registers, stronger judicial cooperation, and transparency in extractive industries—laid the foundations for a continental agenda.

Agenda 2063 and Strategic Planning

Building on these findings, the AU’s Agenda 2063, adopted in 2015, identified the reduction of IFFs as a key priority. This long-term framework stresses that illicit outflows are a major obstacle to sovereignty and economic integration.

The Role of RECs: Regionalized Responses

At the regional level, RECs have designed responses tailored to their contexts:

• ECOWAS (Economic Community of West African States) created in 1999 the GIABA (Inter-Governmental Action Group against Money Laundering in West Africa), covering 15 countries to coordinate action against money laundering and terrorist financing.
• CEMAC (Economic and Monetary Community of Central Africa) adopted in 2019 a strict reform of its foreign exchange regulations to curb illicit outflows.
• SADC (Southern African Development Community) and EAC (East African Community) are working on harmonizing fiscal and customs policies to better control cross-border financial flows.

This first layer of institutional responses was later reinforced by global and sectoral initiatives.

II. International and Sectoral Initiatives: A Global Mobilization

Beyond Africa’s borders, the fight against IFFs has been part of a global movement to regulate financial flows. Several initiatives aim to foster transparency and limit base erosion and profit shifting.

BEPS and Global Tax Reform

In 2013, the OECD (Organisation for Economic Co-operation and Development) and the G20 launched the BEPS Project (Base Erosion and Profit Shifting). Over 140 countries, including some 40 in Africa, participate². Its Pillar 2, adopted in 2021, sets a minimum global corporate tax rate of 15%. However, this measure is criticized for benefiting mostly wealthy countries hosting multinational headquarters.

The Global Forum and the AEOI

Launched in 2009, the Global Forum on Transparency and Exchange of Information for Tax Purposes now counts 168 members, including 40 African states. Its key mechanism is the AEOI (Automatic Exchange of Financial Account Information), implemented since 2017, enabling states to share banking data and identify offshore accounts³. Twenty African countries already participate.

EITI: Extractive Transparency

Since 2003, the Extractive Industries Transparency Initiative (EITI) has required governments and extractive companies to publish their revenues and payments. With 26 African member states, the initiative has revealed major discrepancies, notably in Nigeria and the Democratic Republic of Congo (DRC)⁴.

StAR: Stolen Asset Recovery

Launched in 2007 by the World Bank and the UNODC (United Nations Office on Drugs and Crime), the StAR Initiative (Stolen Asset Recovery) supports countries in tracing, freezing, and repatriating stolen assets. Nigeria, for example, successfully recovered part of the billions embezzled under the Abacha regime⁵.

ATAF and the Africa Initiative

Created in 2009, the African Tax Administration Forum (ATAF) brings together 40 countries. In partnership with the OECD, it launched the Africa Initiative in 2014 with 37 African members to promote the implementation of the AEOI and strengthen expertise on transfer pricing⁶.

These initiatives have broadened the scope of action while complementing African-led efforts.

III. Results Achieved

Taken together, these initiatives have delivered tangible results, reflecting growing mobilization:

• Greater transparency: establishment of beneficial ownership registers in Nigeria, Ghana, and South Africa.
• Increased tax revenues: African countries implementing AEOI recorded an average 20% increase in tax revenues linked to offshore assets⁷.
• Strengthened capacities: tax administrations have created specialized units for transfer pricing audits.
• Civil society mobilization: NGOs such as Tax Justice Network Africa (TJNA) and parliamentary networks exert mounting pressure for transparency and accountability.

These gains are significant but remain insufficient to reverse the trend.

IV. Persistent Limitations: An Incomplete Fight

Despite these advances, several structural obstacles hinder the effectiveness of the fight against IFFs:

1. Limited institutional capacities: in Cameroon, the Financial Intelligence Unit (ANIF) still operates with insufficient human and technical resources⁸.
2. Unfavorable international frameworks: the 15% BEPS minimum tax benefits wealthy countries rather than African resource exporters⁹.
3. Weak judicial cooperation: in Nigeria, of over USD 5 billion stolen by Abacha, only USD 3.6 billion have been repatriated after protracted negotiations¹⁰.
4. Regulatory lag: in Kenya, cryptocurrency transactions exceeded USD 20 billion in 2022 but remain poorly supervised¹¹.
5. Lack of harmonized data: AU estimates annual losses at USD 50 billion, compared to UNCTAD’s 88 billion, complicating assessment¹².
6. Uneven political will: in the DRC, EITI reports revealed billions unaccounted for without credible prosecutions¹³.

These limitations highlight the gap between ambitious commitments and the realities of implementation.

V. Perspectives: Consolidating and Deepening Existing Efforts

The future of the fight against IFFs lies less in creating new mechanisms than in strengthening existing ones. Five key priorities emerge:

• Strengthening transparency (EITI, ownership registers): broaden disclosure obligations and protect whistleblowers¹⁴.
• Accelerating digitalization (ATAF, Africa Initiative): modernize tax administrations through digitalization and data analytics¹⁵.
• Improving international cooperation (Global Forum, StAR): support the adoption of a UN-led Global Tax Convention, proposed in 2023¹⁶.
• Reforming global tax rules (BEPS): advocate for a higher minimum rate (20%) that better reflects African interests¹⁷.
• Mobilizing civil society (TJNA, parliamentary networks): demand systematic publication of country-by-country reporting¹⁸.

These priorities, which directly extend ongoing initiatives, chart a clear path toward a more effective and lasting fight.

A Battle for Economic Sovereignty

The fight against IFFs has advanced thanks to the combined efforts of the AU, RECs, and the international community. Yet progress remains fragile and incomplete.

This battle goes beyond numbers: it is about Africa’s economic and political sovereignty.

The next article in this series will present an overview of concrete strategies and recommendations to make this fight truly effective and sustainable.

Notes and References

1. AU & UNECA, Report of the High-Level Panel on Illicit Financial Flows from Africa, 2015 – link.
2. OECD, Addressing Base Erosion and Profit Shifting (BEPS), 2013 – link.
3. OECD, Tax Transparency in Africa 2025 – link.
4. EITI, Global Annual Report, 2023 – link.
5. World Bank & UNODC, Stolen Asset Recovery (StAR) Initiative, 2007 – link.
6. ATAF, Africa Initiative Progress Report, 2023 – link.
7. TJNA, Policy Priorities on Illicit Financial Flows, 2024 – link.
8. ANIF Cameroon, Annual Report 2023, Yaoundé.
9. OECD, Global Anti-Base Erosion (GloBE) Rules, 2021 – link.
10. Transparency International, Asset Recovery and the Abacha Case, 2021 – link.
11. Chainalysis, The 2022 Geography of Cryptocurrency Report, 2022 – link.
12. UNCTAD, Economic Development in Africa Report 2020, 2020 – link.
13. EITI-DRC, Report 2022, Kinshasa – link.
14. Open Ownership, Beneficial Ownership Transparency in Africa, 2024 – link.
15. ATAF–OECD, Digital Taxation in Africa, 2024 – link.
16. United Nations, Resolution 77/244: International Tax Cooperation at the UN, 2023 – link.
17. ATAF, Position Paper on Global Minimum Taxation, 2023 – link.

Transparency International, Country-by-Country Reporting for Multinationals, 2024 – link.