Tax evasion and black money are draining Africa

Tax evasion constitutes a means of tax avoidance and thus of waste of state public services. It slows down the achievement of the eight Millennium Development Goals (MDGs) set by the United Nations which were designed to meet the needs of the poorest in the world) and, since September 2015, that of the sustainable development goals (known as " ODD ”). The Conversation

Sf tax evasion is in the gray area between legality and illegality, violation of state laws leads to tax evasion which remains illegal. This fraud combined with dirty money from outlawed sectors (trafficking, terrorism, etc.) weakens the gross domestic product (GDP) of African states. Mauritania loses 12% of its GDP, Chad 20% or even 25% for the Republic of Congo. Consequently, illicit financial flows constitute a plague and a brake on industrialization and the emergence of African states.

Tax evasion, a major obstacle to Africa's development

MDG stands for "Millennium Development Goals". FFI stands for “illicit financial flows”. The graph shows that tax evasion and evasion weigh heavily on the timeline of countries that want to achieve their MDGs for better development. Source: Global Financial Integrity.

Illicit financial flows are vampirizing Africa

Illicit financial flows as% of GDP. Africa is losing much more than it receives in aid and foreign direct investment.

Adam Abdou Hassan, Teacher researcher, University of Rouen Normandy

La original version of this article was posted on The Conversation.

Photo credit : Flickr-CC / Future Atlas

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