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President Nana Addo Dankwa Akufo-Addo has urged African leaders to act urgently to curb illicit financial outflows from the continent. Speaking at the opening of the Sixth African Union (AU) Mid-Year Coordination meeting in Accra on Sunday, he highlighted the need for serious intervention to address a problem that is depriving Africa of crucial resources for its development.
The meeting, themed “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,” aims to align AU policies with those of Regional Economic Communities (RECs) and Regional Mechanisms (RMs). This coordination is intended to advance the Union’s integration agenda and address pressing regional trade and operational issues.
President Akufo-Addo underscored the importance of implementing the recommendations from the Mbeki Commission on illicit financial flows, which reported in 2011 on the massive scale of illegal resource siphoning from Africa. Despite calls to action, he noted, the continent has struggled to effectively tackle these flows. “The persistence of illicit financial flows undermines our ability to finance development projects, weakens governance structures and perpetuates inequality,” he said.
He stressed the need to intensify efforts to enforce the Commission’s recommendations, strengthen legal frameworks, and enhance international cooperation to combat these illicit activities. By recovering lost resources, Africa can increase its development financing and ensure that wealth generated within the continent benefits its people.
Additionally, President Akufo-Addo proposed that African countries consider depositing 30 percent of their reserves in African multinational banks instead of allowing them to remain idle in foreign banks with low or negative interest rates. He argued that this strategy would bolster the continent’s self-reliance and enhance the capacity of its financial institutions. “By retaining a sizable portion of our reserves within the continent, we can enhance the stability and liquidity of our financial systems, providing a stronger foundation for economic growth,” he said.
The President expressed optimism that the EU Commission would soon complete its evaluation of this proposal, paving the way for prompt action.
AU Chairperson Mr. Mohamed Ould Ghazouani mentioned that the Union aims to raise approximately $100 billion. He emphasized that effective coordination between the AU and regional blocs is vital for achieving continental integration and advancing Agenda 2063, which seeks inclusive and sustainable socio-economic development over the next 50 years.
Mr. Ghazouani noted that stronger economic integration would enhance Africa’s presence in global institutions such as the United Nations General Assembly, the International Monetary Fund, the G20, and the World Bank. He also highlighted the role of the African Continental Free Trade Area (AfCFTA) in facilitating bilateral trade and promoting economic integration among African countries.
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