President Nana Addo Dankwa Akufo-Addo has urged African leaders to urgently address illicit financial outflows from the continent, which are depriving Africa of crucial resources needed for development.
Speaking at the opening of the Sixth African Union (AU) Mid-Year Coordination Meeting in Accra on Sunday, President Akufo-Addo emphasized the need for serious attention to halt these financial losses.
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 the AU’s policies with those of the Regional Economic Communities (RECs) and Regional Mechanisms (RMs) to advance the Union’s integration agenda and address pressing interregional trade and operations.
High-ranking African Heads of State and Governments, heads of RECs and RMs, members of the AU Commission, and other continental stakeholders participated in the meeting.
President Akufo-Addo highlighted the need to implement the 2011 recommendations of the Mbeki Commission on illicit financial flows from Africa, which revealed the alarming rate at which resources are illegally siphoned out of the continent.
“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,” he stated.
He called for intensified efforts to implement the Commission’s recommendations, strengthen legal and regulatory frameworks, and enhance international cooperation to combat these illicit activities. Reclaiming these lost resources would boost development financing and ensure that the wealth generated within Africa remains on the continent to benefit its people.
Additionally, President Akufo-Addo proposed that African countries deposit 30% of their reserves in African multinational banks instead of foreign banks with often negative interest rates. This move would enhance the continent’s financial stability, liquidity, and self-reliance.
“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.
He expressed optimism that the AU Commission would soon complete its evaluation of the proposal, enabling swift action.
AU Chairperson Mr. Mohamed Ould Ghazouani stated that the Union aims to raise about $100 billion and emphasized the importance of effective coordination between the AU and regional blocs for continental integration, which would contribute to achieving Agenda 2063—a 50-year plan for inclusive and sustainable socio-economic development.
Mr. Ghazouani also noted that strong economic integration among African countries would enhance the AU’s influence in international organizations such as the United Nations General Assembly, International Monetary Fund, G20, and World Bank. The African Continental Free Trade Area (AfCFTA) provides a framework for African countries to enhance bilateral trade and promote economic integration.