#Davos2021: Nana Akufo-Addo on how to prevent illicit outflows from Africa

Ghana’s president Nana Akufo-Addo highlighted the systematic efforts made by powerful companies that do business in Africa to facilitate the illegal transport of resources and wealth outside the continent. He was speaking to CNBC Africa’s Godfrey Mutizwa, on the need to prevent illicit outflows from the continent.

Mon, 01 Feb 2021 14:31:47 GMT

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President Akufo-Addo highlighted the detrimental impact of powerful companies facilitating illicit outflows of resources and wealth from Africa, with an estimated annual loss of $50 billion.
The president called for tax reforms and cross-border cooperation to address illicit financial activities, emphasizing the need for concerted action to stem the outflow of resources.
Investing in education and digital growth was identified as a key driver of economic development, with Ghana prioritizing public responsibility for high school and tertiary education to empower its citizens and drive progress.

As the world gathers virtually for the annual meeting of the World Economic Forum in Davos, Ghana's President Nana Akufo-Addo has drawn attention to the significant issue of illicit financial outflows from Africa. In an interview with CNBC Africa's Godfrey Mutizwa, President Akufo-Addo underscored the detrimental impact of powerful companies engaging in activities that facilitate the illegal transport of resources and wealth out of the continent. He emphasized the urgent need for collaboration and action to address this pressing issue that is draining billions of dollars from Africa's economies each year. President Akufo-Addo expressed deep concern over the staggering figures associated with illicit financial outflows from Africa, pointing to an estimated $50 billion being lost annually. This amount, he noted, is equivalent to a significant portion of the combined GDP of African economies, which is valued at $3.5 trillion. The president stressed that if Africa could stem the tide of illicit outflows and retain these resources within the continent, it would have a transformative effect on the region's development prospects. One key proposal put forth by President Akufo-Addo is the implementation of tax reforms and enhanced cooperation with foreign tax and criminal authorities to combat illicit financial activities. He called for a systematic effort to address this issue and highlighted the importance of education and digital growth in fostering economic development. In Ghana, the government has taken steps to prioritize education by making senior high school education the responsibility of the state, with plans to extend this approach to tertiary education as well. The president emphasized that investing in human capital through education is crucial for the future prosperity of Ghana and other African nations. By ensuring that education is accessible to all, countries can empower their citizens and drive sustainable development. President Akufo-Addo underscored the need for continuous dialogue and collaboration with international partners to tackle the root causes of illicit financial flows and pave the way for a more prosperous and self-reliant Africa. In conclusion, President Akufo-Addo's remarks at Davos 2021 shed light on a critical issue facing the continent and underscored the importance of decisive action to prevent illicit outflows from Africa. With a clear commitment to addressing this challenge through cooperation, reform, and investment in education, African nations can work towards a more sustainable and equitable future for all.