President Akufo-Addo has urged African leaders to act swiftly to halt the illicit financial outflows from the continent.
He emphasized the need for serious attention to this issue, which is robbing Africa of crucial resources that could drive its development.
The President made this appeal during the opening of the Sixth African Union (AU) Mid-Year Coordination meeting in Accra on Sunday.
The meeting’s objective is to harmonize the AU’s policies with those of the Regional Economic Communities (RECs) and Regional Mechanisms (RMs) to advance the Union’s integration agenda and discuss critical issues related to interregional trade and operations.
The meeting is on the theme “Educate an African Fit for the 21st Century: Building Resilient Education Systems for Increased Access to Inclusive and Lifelong Quality and Relevant Learning in Africa.”
A host of African Heads of State and Governments, the heads of the regional economic communities, the heads of the regional mechanisms, and members of the AU commission, along with continental stakeholders, participated in the meeting.
Addressing the gathering, President Akufo-Addo emphasized the urgent need to implement the recommendations of the Mbeki Commission on illicit financial flows from Africa, which, since 2011, has highlighted the alarming rate at which resources are being illegally siphoned out of the continent.
He stressed that decisive action must be taken to stop this outflow and retain these crucial resources for Africa’s development.
“Despite the recommendations and the call to action, we have struggled to curb effectively these flows. The persistence of illicit financial flows undermines our ability to finance development projects, weakens governance structures and perpetuates inequality.
“It is imperative that we intensify our efforts to implement the Commission’s recommendations, strengthen our legal or regulatory frameworks and enhance international cooperation to combat these illicit activities.
“By reclaiming these lost resources, we can boost our development financing and ensure that the wealth generated within Africa remains in Africa to benefit our people,” he stated.
Furthermore, the President emphasized the need for the AU to consider the proposal for African countries to deposit 30 percent of their reserves in foreign multinational banks.
He suggested that instead of allowing these resources to remain idle in international banks, often with negative interest rates, placing them in African multinational banks would enhance the continent’s self-reliance and strengthen the capacity of its financial institutions.
“By retaining a sizable portion of our reserves within the continent, we can enhance the stability and liquidity of our financial systems, providing a stronger foundation for economic growth,” he said.
President Akufo-Addo expressed optimism that this approach would enable African banks to back large-scale development projects and foster a more resilient financial ecosystem, reducing reliance on external financial institutions.
“I am hopeful that the EU Commission will complete its evaluation of the proposal soon so that action can be taken on it as quickly as possible,” he said.
AU Chairperson Mr. Mohamed Ould Ghazouani stated that the Union is targeting to raise approximately $100 billion. He emphasized that effective coordination between the AU and regional blocs is crucial for advancing continental integration and achieving the goals of Agenda 2063, which focuses on inclusive and sustainable socio-economic development over the next 50 years.
Mr Ghazouani highlighted that a robust economic integration among African nations would strengthen the AU’s influence at key global institutions, including the United Nations General Assembly, the International Monetary Fund, G20 nations, and the World Bank.
He also noted that the African Continental Free Trade Area (AfCFTA) provides an excellent framework for enhancing bilateral trade and fostering economic integration across the continent.