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Honest Accounts? The true story of Africa’s billion dollar losses

Added 24 Jul 2014
This report published by Eurodad members Jubilee Debt Campaign and World Development Movement (WDM), along with several other organisations, including Eurodad partners AFRODAD and Tax Justice Network, reveals that Africa is losing $192 billion every year to the rest of the world – almost six and a half times the amount of ‘aid’ given back to the continent. This research is the first attempt to calculate Africa’s losses across a wide range of areas. These include: illicit financial flows; profits taken out of the continent by multinational companies; debt payments; brain drain of skilled workers; illegal logging and fishing and the costs incurred as a result of climate change.

The report calculated the money leaving Africa every year and compared this to the resources flowing in. The findings show that Africa loses:
  • $46.3 billion in profits made by multinational companies
  • $21 billion in debt payments, often following irresponsible loans
  • $35.3 billion in illicit financial flows facilitated by the global network of tax havens
  • $23.4 billion in foreign currency reserves given as loans to other governments
  • $17 billion in illegal logging
  • $1.3 billion in illegal fishing
  • $6 billion as a result of the migration of skilled workers from Africa 
In addition to these resource flows Africa is forced to pay a further:
  • $10.6 billion to adapt to the effects of climate change that it did not cause
  • $26 billion to promote low carbon economic growth
If these financial outflows and costs are compared with inflows into Africa, the result is a net annual loss of $58.2 billion. This is over one and half times the amount of additional money needed to deliver affordable health care to everyone in the world. If the rest of the world continues to raid Africa at the same rate, $580 billion will be taken from the African people over the next ten years.

Read the full report here or click on the download button below.