Estimated $50b exported illegally out of Africa – Mbeki

Former South African President, Thabo Mbeki says an estimated $50 billion is exported illegally out of the African continent.

“This money is exported illegally instead of being invested in the continent,” he said Saturday to a United Nations Economic Commission for Africa (UNECA) high level panel in Johannesburg, according to a News 24 report.

Mbeki said, “Almost $25 billion comes into the continent. That means it loses twice the capital it receives in financial assistance.”

The high level panel, chaired by Mbeki, would investigate illicit and financial flows of finance out of the continent.

He said it would take a year for the panel to complete its investigation.

Mbeki was of the view that the loss needs to be addressed before it undermined the prospect of Africa’s development.

According to Mbeki, “The panel will study the flow of money and understand how it is done. The African continent will expect the panel to provide practical measures to stop the flow.”

“As a panel we have no punitive measures. The panel will make proposals to those with punitive power and explain how it [the flow of money] is done.”

According to the report, he said the panel would provide sufficient information about the different methods of the outflow.

This would include over-invoicing and under-pricing of exports and money laundering strategies.

“In some instances mining companies will export platinum…and in the customs records they will say they are exporting tin, which has a lower price,” he was quoted to have said.

By Emmanuel K. Dogbevi