The president of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has warned that Africa’s ballooning debt—currently nearing $2 trillion—cannot be sustainably managed unless the continent tackles corruption and illicit financial flows that drain more than $580 billion annually.
Speaking in an interview with Bloomberg during a visit to Maputo, Mozambique, Adesina stressed that while concessional financing andl debt restructuring are necessary, the bigger priority lies in plugging financial leakages.
He noted that Africa loses billions through tax evasion, trade misinvoicing, corruption, smuggling, and money laundering.
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“It doesn’t matter how much water you pour into a bucket if the bucket is leaking,” Adesina said, emphasizing that reducing illicit outflows would help African nations retain resources needed for infrastructure, health, education, and job creation.
AfDB estimates released in May showed that the continent loses about $1.6 billion daily to such “financial leakages,” including $90 billion annually to illicit financial flows, $275 billion through profit-shifting by multinational corporations, and $148 billion lost to corruption.
Meanwhile, Africa faces an infrastructure funding shortfall of up to $170 billion per year, according to Bloomberg’s reporting.
Adesina urged African leaders to act decisively, arguing that reducing leakages would free up capital to accelerate development and reduce dependence on debt.
Image Credit: Arise News
