Dr. Ibn Chambas, the African Union’s High Representative for Silencing the Guns, has called on Ghana and neighboring nations to aggressively tackle illicit financial flows (IFFs), arguing that clamping down on such leaks could dramatically reduce dependence on foreign aid and contentious loans.
Speaking virtually at the Governance Forum on Elections and Governance in Ghana, organized by the Africa Centre for Governance and Economic Management (AGEM) and Friedrich Ebert Stiftung (FES), Chambas revealed that Africa loses over $60 billion yearly to IFFs—a figure matching the continent’s total donor aid receipts in 2023.
“Why seek IMF loans with punishing conditions when we can recover equivalent funds by stopping these financial hemorrhages?” Chambas asked, highlighting Ghana’s annual loss of $3 billion through tax evasion, under-invoicing, and illicit transfers. He cited investigations by Ghana’s Economic and Organised Crime Office (EOCO), which uncovered $1.8 billion illegally moved abroad between 2018 and 2020, alongside $1.5 billion in unreported gold exports by mining firms during the same period.
The forum, attended by Chief Cabinet Secretary Kwaku Danso Boafo, academics, and civil society leaders, aligned with President John Mahama’s National Economic Dialogue set for March 3–4. Chambas stressed that curbing IFFs requires tighter customs oversight, transparency in extractive industries, and leveraging trade frameworks like the African Continental Free Trade Area (AfCFTA) to retain revenue. “Aid dependency is not a development strategy,” he asserted, urging reforms to close loopholes exploited by corporations and corrupt actors.
Chambas also pinpointed governance failures, noting Ghana’s struggle to translate political pledges into action. “The issue isn’t planning—it’s delivery,” he said, advocating for costed policies, clear funding plans, and rigorous implementation monitoring. His remarks resonate amid Ghana’s efforts to stabilize its economy after a 2022 debt default and a $3 billion IMF bailout, with public skepticism rising over unfulfilled infrastructure and social promises.
Experts argue that stemming IFFs could ease fiscal pressures, funding critical projects without accruing debt. Yet challenges persist, including weak enforcement and entrenched corruption. As Ghana’s dialogue unfolds, Chambas’s appeal underscores a pivotal choice: plug the leaks fueling inequality or remain shackled to external lenders. For a nation rich in gold and ambition, the path to self-sufficiency may hinge on this reckoning.
