Ghana and other African nations must crack down on illicit financial flows (IFFs) to reduce reliance on donor aid, Dr. Ibn Chambas, the African Union’s High Representative for Silencing the Guns, said.
Speaking virtually at the Governance Forum on Elections and Governance in Ghana: Managing for Results, Dr. Chambas said Africa loses more than US$60 billion annually to illicit transactions—an amount equivalent to the continent’s total donor inflows in 2023. Ghana alone loses about US$3 billion each year through tax evasion, under-invoicing, and unauthorized transfers, he said.
“Why go to the IMF for loans with harsh conditions when we can mobilize similar funds domestically by tackling IFFs?” he said. “Aid dependency is not a development strategy.”
Revenue Leakages
Ghana’s Economic and Organised Crime Office (EOCO) found that between 2018 and 2020, US$1.8 billion was illegally transferred abroad without records, Dr. Chambas said. Another US$1.5 billion in gold exports went unreported by mining companies during the same period, worsening the country’s fiscal challenges.
The forum, organized by the Africa Centre for Governance and Economic Management (AGEM) and Friedrich Ebert Stiftung (FES), brought together policymakers, academics, and civil society leaders, including Chief Cabinet Secretary Kwaku Danso Boafo. The discussions aligned with Ghana’s National Economic Dialogue, scheduled for March 3–4 under President John Mahama.
Stronger Oversight Needed
Dr. Chambas called for tighter customs enforcement, improved transparency in the extractive sector, and better utilization of regional trade frameworks like the African Continental Free Trade Area (AfCFTA) to boost revenue retention.
He also stressed the need for greater accountability in governance, urging policymakers to ensure campaign promises are backed by clear funding plans and implementation benchmarks.
“Ghana doesn’t have a planning problem—it has a delivery problem,” he said. “We need to execute projects efficiently, from start to finish.”
A key issue highlighted at the forum was Ghana’s struggle to implement campaign promises effectively. Dr Chambas underscored the need for a structured approach to governance, where political pledges are costed, funding sources are clearly outlined, and implementation is monitored at every stage.
Given economic headwinds, tightening financial oversight and reducing illicit flows could ease fiscal pressures and fund critical infrastructure and social programs without resorting to external borrowing, he said.
