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     Home > Justice & Peace >  2013-05-11 19:33:42
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Africa losing billions of US dollars to outside in tax evasion, secret mining deals and financial transfers



Prominent Africans who include the former UN Secretary General, Kofi Annan, former Nigerian President Olusegun Obasanjo and Graca Machel, the wife of former South African President, Nelson Mandela, have released this year’s Africa Progress Report. The report notes that tax evasion, secret mining deals and financial transfers are depriving Africa of the benefits of its resources. The report gave the Democratic Republic of Congo as an example, where between 2010 and 2012 five underpriced mining concessions were sold in secretive deals. The deals cost the country, 1.3 Billion US dollars in revenues which was two times the budget of the country’s education and health sectors. The report added that many mineral-rich countries needed to review their tax policies, which were designed to attract foreign investment when commodity prices were low. It quotes a review in Zambia which found that between 2005 and 2009, half a million copper mine workers were paying a higher rate of tax than major multinational mining companies. Mr. Kofi Annan told reporters in Accra that African countries are not getting the revenues they deserve because of either corrupt practices, tax evasion and other illicit activities. He said these practices are unfair and penalize the poor on the African continent. He called upon African governments to be more transparent and to work out policies that will stop the plundering of Africa’s resources. He appealed to rich countries to introduce international rules on transparency and taxation.




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