Africa suffers from capital flight

Jun 06, 2013

Capital outflows are a major obstacle to development. However, between 1980 and 2009, illegal capital flights in the order of $1,220 to $1,350 billion were added to the recorded transfers, leading to an increase in net transfers from $597 billion in 1980 to $1,400 billion in 2009.

These figures, a result of a joint study by the African Development Bank (AfDB) and Global Financial Integrity (GFI) were presented at the 48th Annual Meetings of the African Development Bank (ADB) in Marrakech, Morocco.

Chief Economist and Vice President of the AfDB
Mthuli Ncube worried that "the drain of resources out of Africa over the last thirty years - almost the equivalent of the current GDP of Africa – is
impediment to the take-off of the continent. "

Taking into account the unrecorded illegal flows, Africa is a net exporter of capital (a creditor to the rest of the world).