Africa is estimated to lose $88 billion annually to illicit financial flows, translating to about sh325 trillion. Of this, Uganda alone is estimated to lose sh2 trillion every year.
The Speaker of Parliament, Anita Among, has called for a united front to combat the financial hemorrhage that continues to cripple service delivery and infrastructure development across the continent.
This was during the officiating opening ceremony of the African Organisation of Public Accounts Committees (AFROPAC) three-day conference and 5th General Meeting, held from March 17th to 21st at Golden Tulip, under the theme ‘Strengthening Legislative Action to Combat Illicit Financial Flows and Foster Public Financial Resilience.’
“What is alarming is that the loss of this money is felt by our indigenous people. This money comes out of the taxes that our people pay, and the impact is evident in poor service delivery. We end up with no schools, hospitals, good roads, or electricity, which stalls development in our country,” she said.
Among stressed that Africa is not a poor continent but one that has failed to harness its own resources effectively.
“We have it all. If we utilized what we have, we wouldn’t need to depend on foreign aid. If we tackle corruption, tax evasion, and illicit financing, we would not have to keep lobbying and borrowing from external sources,” she added.
As Vice Chairperson of the African Speakers’ Association, Among vowed to push for AFROPAC’s agenda at a continental level.
“We must fight for this continent. If we do not have a united Africa, then we are not going anywhere. African problems can only be solved locally, not by external forces.
Among assured participants that once Parliament resumes, Hon. Medard Lubega Ssegona, the chairperson of the Committee on Statutory Authorities and State Enterprises (COSASE), would be given space on the Order Paper to present the conference’s resolutions for formal adoption.
She urged all members of PACs across Africa to work without fear or favor, stating that their primary responsibility is to the people.
“At the end of the day, you might face pressure from the government or leadership, but remember, you are working for the people. They are watching you.”
Ssegona, (MP for Busiro East) who is also the Chairperson of AFROPAC, noted that the conference’s agenda will deliberate on several key topics, including the interlinkage between illicit financial flows (IFFs) and debt, as well as tackling financial leakages in sectors such as the extractive industries, where significant revenues often disappear without benefiting local communities.
“The role of PACs has never been more crucial. We must continue to explore how robust legal reforms, accountability mechanisms, and regional cooperation can help tighten the loopholes that allow these illicit financial flows to thrive,” he said.
He emphasized the importance of collaborating with institutions such as the African Union (AU), the South African Development Community Organization of Public Accounts Committees (SADCOPAC), the West African Association of Public Accounts Committees (WAAPAC), and the East African Association of Public Accounts Committees (EAAPAC).
“The fight against illicit financial flows is not a battle that any single country can tackle alone. AFROPAC is dedicated to promoting regional and continental cooperation to establish harmonized policies, share intelligence, and take joint action,” Ssegona stated
Ssegona further stressed that PACs must ensure that Africa secures fair and transparent financial agreements.
“Strengthening partnerships in combating illicit financial flows requires collaboration among governments, regional bodies, civil society, and the media.”
SADCOPAC calls for capacity-building and legislative reforms
Warren Mwambazi, the Chairperson of the Southern African Development Community Organization of Public Accounts Committees (SADCOPAC), echoed the need for enhanced oversight and accountability.
“At this time, when Africa is grappling with the devastating impact of illicit financial flows, this conference serves as a critical platform for us as an oversight institution to reflect, collaborate, and strategize on effective solutions to combat the loss of much-needed resources for development.”
Mwambazi noted that illicit financial flows are not just about financial outflows but also about ensuring that public resources are effectively channeled into sustainable development.
“Our collective effort in curbing illicit financial flows will yield positive results only if we work together through strengthening legislative frameworks, enhancing investigative capacity, and ensuring sustainable political will.”
He also emphasized the importance of equipping public accounts committees with the necessary skills and tools to effectively scrutinize financial transactions and expose illegal dealings.
“We are dealing with advanced mechanisms, often involving multinational actors. We need to capacitate our members to ensure they can adequately scrutinize financial flows and prevent such vices from taking root in our jurisdictions.”
Conference resolutions to be adopted
Justin Joseph Marona, the Chairperson of PAC-South Sudan and representative of EAAPAC, emphasized the importance of the conference’s resolutions, stating, “The resolutions that emerge from this conference will be Africa’s roadmap in the fight against illicit financial flows. This is a pivotal moment for us to unite and strategize, ensuring that we tackle this issue head-on, not only for our nations but for the future of the continent.”
He further stressed the need for strong regional cooperation, adding, “Only through collaboration can we close the loopholes and create a robust financial system that truly benefits our people.”
Mark Botonami, the AFROPAC Secretary General, passionately called for bold action, saying, “Africa’s wealth lies within its people and resources, but we are losing far too much through illicit financial flows. The time for talking is over; it’s time for concrete, lasting action that ensures these funds benefit the people they were meant for.”
He also emphasized the role of public accountability, stating, “True progress comes when we hold ourselves accountable. We need to think beyond traditional frameworks and empower our financial systems to self-sustain, free from external exploitation.”
In a call for innovation, Botonami noted, “Our solutions must be as dynamic as the threats we face. This conference is not just a discussion, but a Launchpad for new approaches that will redefine how we secure Africa’s financial future.