Corruption drains $148 billion annually from Africa, according to the African Union. At an estimated 25 percent of the continent’s average gross domestic product, the AU calls it a huge drain on Africa’s productivity.
At the 31st AU Summit in Mauritania last week, African heads of state said they want to prevent billions more being stolen by seeking to abolish banking secrecy and tax havens.
They also discussed a mechanism to return corruptly acquired funds, most of which are hidden in countries that allow the practices.
However, Senegalese tax inspector Elimane Pouye says the fight against corruption in Africa requires more than just statements at international summits.
These measures are usually just a facade, he said, adding that donors put pressure on states to show they are fighting corruption so that they can receive aid.
Offshore entities are not illegal, but banking secrecy in places like Mauritius and Luxembourg can be