Egypt Host 1st African Anti-Corruption Forum

As Africa Loses Over US$50 Billion

By Sylvester Samba

“Corruption is pervasive across Africa and is having a disproportionate effect on the poor, with long-term consequences for development.”

— According to the World Bank

The 1st African Anti-Corruption Forum took place in Sharm El-Sheikh Egypt on June 12-13, 2019. The topic, the role of Anti-Corruption efforts & activities in Africa’s Development.

Anti-Corruption Chairman, Ben Kaifala & Rtd. Brigadier Julius Maada Bio, President, The Republic of Sierra Leone

The head of the Sierra Leone Anti-Corruption Commission ACC Mr. Ben Kaifala was in attendance. Commissioner Francis Ben Kaifala message on corruption can undermine the efforts of governments to bring prosperity to their countries and promote violent conflicts, poverty, and underdevelopment, in many countries, and for too many decades. Mr. Kaifala noted that corruption, mostly defined as the abuse of public office for private gain, has long been a concern for many countries around the world; more so in Africa.

In many situations, and including Sierra Leone, this led to a breakdown in law and order. It also lowers the GDP of the country. Sierra Leone; a country epitomizes decades on corrupt practices. 

Dreher and Herzfeld (2005) estimate that an increase in corruption by about one point reduces GDP growth by 0.13 percentage points and GDP per capita by US$425. Corruption damage the state economy, its political system, and institutions.

The socio-economic and political cost of corruption in Africa is enormous. The Control Risk Group estimated in 2011 that developing countries lost close to US$1 trillion to fraud, corruption, and shady business transactions.

According to the Mo Ibrahim Foundation, corruption costs Africa over US$148 billion per annum – ‘equivalent to 50% of tax revenue and 25% of African GDP.’ Mostly through Illicit transactions by multinational corporations through corrupt practices, continue to deprive countries much needed financial resources.

President Bio campaigned against corruption is determined to fight corruption all its forms under his leadership. Anti-Corruption measures are critical elements to the operation of the Rule of Law. The lack of same always breeds bad international governance ratings and undermines opportunities for economic cooperation with international financial institutions, development agencies, and donor states, no matter the scores for other indicators.

According to the World Bank, corruption is pervasive across Africa and is having a disproportionate effect on the poor, with long-term consequences for development.

In the late ’90s, Western stakeholders became active in Africa’s fight against corruption. Former World Bank president, James Wolfensohn, and IMF, Managing Director, Michel Camdessus, announced donor leverage would be used to eliminate corruption. This anti-corruption campaigns western-like identity, which partly explains the failures of the anti-graft institutions.

Africa to grow, nurture own ideas, processes, and mechanisms to deal with corruption, it is a critical participatory evaluation of commissions and agencies, as well as the inclusive decision-making process. Africa remains one of the most corrupt continents and correspondingly, the poorest and most underdeveloped in many corruption perception surveys. Addressing the problem of corruption is a strategic and comprehensive way of paramount importance as a development priority for Africa.

Successful national anti-graft campaign amounts to the remarkable transformation of countries like Singapore and Malaysia from little more than fishing villages in the 1960s to an industrial metropolis and economic gateways to the Asia-Pacific sub-region today. We can say the same for Botswana, Seychelles, Rwanda, etc.

The fight against corruption will enable ordinary Africans to reach their full economic and human potentials.

Desmond Babatunde Edwards (center), Chief Justice, The Republic of Sierra Leone & ACC Chairman, Ben Kaifala (right) and others

Cross-section of delegates attending the Forum

THE PROBLEM: Almost everywhere in Africa, corruption continues to be the biggest inhibitor of development and growth

In Sierra Leone, Nigeria, Guinea, and Liberia corruption continue to impede efforts aimed at promoting democratic governance. In South Africa, Zimbabwe, Zambia, Uganda, and Malawi, corruption continues to undermine socio-economic transformation. Nigeria, Somalia, Central African Republic, Cameroon, Tunisia, Egypt, Libya, Chad, Mali, and the DRC, corruption continues to undermine peace and security of the people.

From Gabon, west to Kenya, east, corruption continues. Uganda to Senegal in the west, corruption breeds conflict, disunity, and discord.

The complexities, seriousness is captured in the Africa Progress "Mbeki" Report. The High-powered Panel on Illicit Financial Flows from Africa revealed that Africa loses over US$50bn annually through illicit financial flows and tax evasion. Far more what Africa receives in either international aid or foreign investment. The report also estimates Illicit Financial Flow from Africa, 1970 – 2008 at nearly $900 billion. Money simply disappearing – mostly going into the pockets of individuals and groups, thereby depriving parents of food for their families, medicines for children, classrooms, and potable water for communities, etc.

While personal fortunes are consolidated by a corrupt few, the vast majority of Africa’s present and future generations are being deprived of the benefits of common resources that might otherwise deliver incomes, livelihoods, and better nutrition. If these problems are not addressed, we are sowing the seeds of a bitter harvest ~ The Late, Kofi Annan, Former UN Secretary General.

Today, as part of that ‘bitter harvest,’ Africa imports $34bn worth of food.Today, as part of that ‘bitter harvest,’ Africa imports $34bn worth of food. Our roads, railways, and other public projects are non-existence.

The Progress Report estimate Africa loss US$17bn annually from illegal logging while fishing fleets flout international conventions costing West Africa alone $1.3bn. The cost, driven by corruption in most parts.

THE AFRICAN ANTI-CORRUPTION FORUM, EL-SHEIKH, EGYPT

As more African countries realize that their country development will be in jeopardy if they fail to root out corruption, many states have instituted accountability measures and created Anti-Corruption Agencies to ensure that resources trickle down to their people. Cape Verde, Mauritius, Rwanda, Botswana are amongst countries that occupy respectable positions in the Control of Corruption indexes. The African Union Convention on Preventing and Combating Corruption provided a continental backbone to the efforts of member states in the fight against corruption. A united front against corruption is getting more formidable.

THE POTENTIAL: Solving The Problem: Education, backed by a commitment by all to reject corruption at all levels and in all jurisdictions of the continent.

Anti-corruption policy-making should improve youth capacity in implementing anti-graft policies. Africa is home to over 1.2 billion people; over 60% of its population falls under the age of 35. Relevant sectors of society should be targeted to fully commit to fundamental ethical principles for public and professional life. The AU Advisory Board on Corruption should take leadership in defining the broad educational policy framework and setting the blueprint. Lack of accountability, transparency, and perpetual bad governance addressed as this, a recipe for corruption.

We're in a position to build our schools, equip our hospitals with the best brains, types of equipment, and with available medicines without the help of China or the West. We can transform Africa into a paradise. Now is the time to make that positive difference. All of us to push let us make it happen. Where else can victory be harvested; if not from us? We have to make it happen -positive difference Africa yearning realized through us.