Download: Concept Note

Illicit Financial Flows (IFFs) are described as Africa’s “most silent and ruinous affliction,” commanding losses of $50 to $80 billion annually through opaque methods like trade misinvoicing and tax evasion, and stealthily leaching wealth into international financial centers. This systemic looting, which involves a deep-rooted collusion between African elites, multinational corporations, financial institutions, and offshore centers, fundamentally hinders domestic resource mobilization, undermines social services, erodes governance, and is considered the single most significant deterrent to Africa’s fiscal self-determination and peacebuilding potential. The text emphasizes that the struggle against IFFs must be moved to the center of international economic governance discussions as “the elephant in the room” because the recovery of these illicitly exported resources is critical for realizing Africa’s Agenda 2063 ambitions, ensuring inclusive development, and countering cycles of poverty, grievance, and instability.