Illicit Financial Flows (IFFs) are a devastating drain on African economies, undermining the very foundations of sustainable development and exacerbating the challenges of poverty and inequality on the continent. These flows, which represent cross-border transfers of value illegally acquired, transferred, or used, pose a major challenge not only to domestic resource mobilization but also to governance, stability, and the achievement of Africa’s development aspirations, as outlined in the African Union’s Agenda 2063 and the United Nations Sustainable Development Goals (SDGs).
This report aims to provide an in-depth and expert analysis of the specific influence of these IFFs on the financial autonomy and capacity for action of Non-Governmental Organizations (NGOs) and development organizations that play a crucial role on the continent. These organizations, often on the front lines of providing essential services, defending human rights, and promoting local development, operate in a complex environment where resources are scarce and challenges are multiple. Understanding how IFFs affect their financial viability and strategic independence is therefore essential to fully understand the consequences of this scourge and to formulate adequate responses. This analysis is based on a critical review of the research materials provided.
The scale of the IFF phenomenon in Africa is alarming, although estimates vary depending on the methodologies and scope considered. Institutions such as the United Nations Conference on Trade and Development (UNCTAD) and the Joint High-Level Panel of the African Union and the Economic Commission for Africa (AU/ECA) estimate annual losses at at least US$50 billion, an amount that exceeds the Official Development Assistance (ODA) received by the continent.
Other estimates, such as the one cited by Tax Justice Africa, put the figure at $88.6 billion per year. In the long term, the AU/ECA High Level Panel report puts the cumulative loss over 50 years at more than $1 trillion. Global Financial Integrity (GFI) estimated illicit capital outflows between 1970 and 2008 at between $865 billion and $1.8 trillion. These figures, although subject to methodological debate, highlight the enormous shortfall in development financing in Africa, a shortfall that inevitably affects the non-profit sector’s capacity for financing and action.
