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BusinessGhana faces an annual loss of $1.4bn due to illicit financial outflows...

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Ghana faces an annual loss of $1.4bn due to illicit financial outflows – Tax Justice Network Africa

The country is singled out as one of the leading nations experiencing substantial revenue losses due to tax evasion, tax exemptions, and systemic tax inefficiencies.

Speaking to journalists at the African Parliamentary Network on Illicit Financial Flows and Taxation Summit in Ghana, Francis Kairu, Strategic Programmes Director at TJNA, stressed the critical need to tackle these challenges urgently.

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“Our governments must also acknowledge that the problem is a major issue, and I think the biggest challenge in our generation now is the issue of illicit financial flow,” he added: “Ghana is one of the countries that loses the most because you have natural resources, you have a huge population that is being taxed.”

Mr. Kairu elaborated on the impact of multinational corporations operating in Ghana, noting, “You also have multinational companies in this country, and you are losing over $1.4 billion every year to the activities of these multinationals and illicit financial flows. Ghana is one of the countries that grant tax exemptions and tax holidays every other day.”

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The wider African landscape presents similar concerns, with the continent experiencing an annual loss of nearly $89 billion from illicit financial flows, according to a report by the United Nations Conference on Trade and Development (UNCTAD).

The report characterizes Africa as a ‘net creditor to the world,’ signifying a significant outflow of capital from the continent.

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Nearly half of the total financial loss is attributed by experts to the under-declaration of export values for commodities like gold, diamond, and platinum.

Companies involved in these activities face accusations of tax and royalty evasion, intensifying the financial drain on the continent.

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