Youths urged to join fight against illicit financial flows

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Civil Society Organizations recommend that the youth embrace digital activism against rampant illicit financial inflows which have continued to rob Uganda and Africa as a continent of resources critical for development.

According to Herbert Kafeero, Programmes and Communications Manager at SEATINI Uganda, IFFs threaten the future and it’s important that younger people use their potential and change the narrative, as well as allow for inclusivity in fighting the vice.

He was speaking during “StopTheBleeding” Campaign dialogue held at Makerere University Business School, an engagement aimed at creating awareness around illicit financial inflows.

“Youth in Africa must step up, the $88.6b lost to illicit financial flows globally every year could fuel innovation, education, and entrepreneurship. Use platforms like X to hold policymakers accountable and advocate for economic policies,” Kafeero noted.

Illicit financial flows refer to the illegal movement of money or assets across national borders, often involving crimes such as corruption, tax evasion, money laundering, and terrorist financing.

A 2013 report by the African Development Bank and Global Financial Integrity found that Africa lost between $1.2 trillion and $1.4 trillion to illicit financial flows from 1980 to 2009, equivalent to about $1,146 (sh3.7m) per person on an inflation-adjusted basis.

“Your engagement is crucial in tackling illicit financial flows and reclaiming our resources for development. Together, StopTheBleeding. Currently, one of the sticky issues around the international tax negotiations revolve around how multinational corporations should be taxed,” Mukasiri Sibanda, StopThe Bleeding Consortium Coordinator highlighted.

He added that while African nations struggle with debt and funding challenges, billions in Illicit Financial Flows escape our continent each year, rendering the African continent poorer.

“We are accumulating debt yet debt is a deferred tax. This is because at some point in the future, the government will use taxation to pay the debt. The role of parliament, judiciary and media is important in regard to debt and taxation.

The global tax system according to the tax policy experts “has worsened the trade with Africa” by advocating for trade policies which favors developed economies.

Illicit financial flows aren’t just numbers, they impact on critical projects that translate to economic development such as roads, hospitals and generally affects livelihoods.

It is estimated that Uganda loses about sh2 trillion every year to illicit financial flow and the figure is likely to be higher given the global disparities.