From The New Times via AllAfrica

Africa loses over $192b each year through profit repatriation and tax dodging by foreign companies, a new report by like-minded continental civil society groups led by Health Poverty Action, and Curtis Research, a UK-based research firm, has indicated.

The July 2014 report, “Honest Accounts? The true story of Africa’s billion dollar losses” that was released last week, also indicates that the continent suffers a net loss of $58b a year compared to $30b it receives in aid from development partners.

According to the report, the continent could lose $580b in the next 10 years if the loopholes that promote profit repatriation are not plugged.

“Almost $46.3b in profits made by multinational companies and another $21b in debt payments is lost every year,” the report indicates.

Though the report did not indicate the loss incurred by particular countries, it further shows that over $35.3b is lost in illicit financial flows facilitated by the global network of tax havens and $23.4b in foreign currency reserves.

Africa also loses about $17b in illegal logging, $1.3b in illicit fishing and $6b from the migration of skilled workers to other continents.

What this means

“This means African citizens are losing almost six and a half times what their countries receive in aid each year. Or, for every £100 given in aid, £640 is ‘given back’.

This demands that we rethink our role in addressing poverty in Africa,” Martin Drewry, the director of Health Poverty Action, said in a statement in London during the release of the report.

Read more at AllAfrica