Business a.m.
Nigeria has called on the international community to join forces in the fight against illicit financial flows (IFFs), which have become a major hindrance to economic development and stability, syphoning an estimated $50 billion annually from African nations.
President Bola Tinubu made the call in his opening remarks at the 2024 African Caucus Meeting in Abuja, highlighting the challenges confronting Africa on multiple fronts, including economics, humanitarianism, and social spheres.
But despite these challenges, the president underscored the importance of taking the necessary steps to convert Africa’s abundant natural resources and human capital into sustainable economic growth, innovation, and collaboration among African countries.
According to reports, illicit financial flows have plagued Africa for years, causing a drain on the continent’s economic resources. Often described as a complex web of activities, IFFs encompass corruption, tax evasion, money laundering, and illegal trade, among others. According to recent estimates, Nigeria and other African countries are losing as much as $50 billion annually to these illicit outflows.
President Tinubu, who was represented at the event by Vice President Kashim Shettima, stated, “We need enhanced international tax cooperation to combat illicit financial flows and ensure that multinationals contribute fairly to our economies. We must also foster global economic cooperation to tackle shared challenges and leverage opportunities.
“However, we must also acknowledge the need to take responsibility for our own development by undertaking the difficult structural and fiscal reforms required to boost long-term growth and enable reinvestment into our economies through infrastructure and effective social spending,” the president stated.
Delivering the president’s presentation titled “A Shared Vision for Africa’s Growth”, Shettima dwelled on the need for African countries to collaborate and create conditions that support a higher quality of life for their citizens. He lamented that, despite Africa’s inherent strengths in resilience, creativity, and hope, the continent continues to face a range of challenges, including poverty, debt, inequality, and conflicts, which have hindered progress towards achieving the 2030 Agenda for Sustainable Development Goals.
The African Caucus meeting, held for the first time in Nigeria, brought together African leaders to address the challenges and opportunity in intra-African trade, one of the continent’s most pressing economic issues.
The meeting drew a number of high-profile attendees from across the continent, underscoring the significance of the event in driving economic development and cooperation among African nations.
Ngozi Okonjo-Iweala, director-general of the World Trade Organisation (WTO), Amina Muhammed, deputy secretary-general of the United Nations, and Ambassador Albert Muchanga, African Union Commissioner for economic development, trade, tourism, industry, and minerals, were among the distinguished speakers who attended the meeting to share their insights and expertise on regional trade and sustainable development.
The meeting’s theme, “Facilitating Intra-African Trade: Catalyst for Sustainable Economic Growth in Africa,” discussed the importance of regional economic cooperation as a means to stimulate sustainable economic growth and development across Africa.
In his welcome address, Wale Edun, who doubles as the chairperson of the caucus and Nigeria’s minister of finance and coordinating minister of the economy, expressed optimism about the continent’s economic outlook.
Citing data from various sources, Edun noted that African nations are expected to outperform the global growth average of 3.2 percent in 2024, with an anticipated growth rate of 3.8 percent. This projection marks a significant improvement from the region’s growth rate of 3.4 percent in 2022, and Edun further estimated that the growth rate will climb to 4.3 percent in 2025.
Joining the meeting virtually, Ngozi Okonjo-Iweala, director general of the World Trade Organisation (WTO), delivered an analysis of Africa’s economic situation and potential, drawing attention to both the opportunities and obstacles facing the continent, particularly in terms of intra-African trade.
Drawing on data from the United Nations, Okonjo-Iweala highlighted the stark contrast between Africa’s low level of intra-continental trade (13% of goods trade in 2021) and that of other regions, such as Southeast Asia (21%), North America (39%), and Europe (60%). In her address, she underscored the significant potential gains for Africa through increased regional integration and called for African nations to take advantage of their significant green comparative advantages and abundant natural resources.
The WTO DG further expressed her conviction that the African Caucus Meeting provided an ideal platform for driving macroeconomic reform across the continent. In recognition of this, she pledged the full support of the WTO in assisting Africa to overcome the challenges hindering the region’s economic growth.
