President Nana Akufo-Addo has called on African countries to act with urgency to stem the flow of illicit funds from the continent.
He said there was a need to seriously pay attention to and stop the current situation that is depriving Africa of vital resources that could be utilised to support its development.
The President made the call at the opening ceremony of the 6th African Union (AU) Mid-Term Coordination Meeting in Accra on Sunday.
The meeting aims to harmonise AU policies with those of the Regional Economic Communities (RECs) and Regional Mechanisms (RMs) and deepen the EU’s integration agenda.
They will discuss pressing issues such as economic integration, regional trade and governance.
The theme of the conference was “Educating Africans for the 21st Century.”st “21st Century: Building Resilient Education Systems to Increase Access to Inclusive, Lifelong, Quality and Relevant Learning in Africa”
The conference is being attended by a large number of African Heads of State and Government, heads of regional economic communities, heads of regional mechanisms, members of the AU Commission and stakeholders from the continent.
President Akufo-Addo told the rally that efforts must be made to implement the findings of the Mbeki Commission on Illicit Financial Flows from Africa, which in 2011 found an alarming amount of money was flowing illegally out of the continent.
“Despite recommendations and calls for action, we have struggled to effectively curb these flows. When illicit financial flows continue, they undermine our ability to fund development projects, weaken governance structures and perpetuate inequalities.”
“There is an urgent need to intensify efforts to implement the Commission’s recommendations, strengthen legal and regulatory frameworks and enhance international cooperation to combat these illegal activities.”
“By recovering lost resources, we can increase development funding and ensure that wealth generated within Africa stays in Africa and benefits its people,” he said.
The President further stressed that the AU must consider a proposal for African countries to deposit 30 percent of their reserves in foreign multinational banks.
He suggested that depositing this money in African multinational banks, rather than leaving it in international banks with negative interest rates, would make the continent more self-reliant and its financial institutions more capable.
“Keeping a significant portion of reserves within the continent will enhance the stability and liquidity of our financial system and provide a stronger foundation for economic growth,” he said.
President Akufo-Addo was optimistic that this approach would enable African banks to support large-scale development projects and build a more resilient financial ecosystem that is less dependent on financial institutions.
“We hope that the EU Commission will soon complete its assessment of the proposal so that we can act as soon as possible,” he said.
AU Chairman Mohamed Ould Ghazouani said the AU was seeking to raise around $100 billion to help the continent’s export-oriented companies increase production.
He noted that effective coordination between the AU and regional blocs is crucial in establishing continental integration and will contribute to the achievement of Agenda 2063, which aims for inclusive and sustainable socio-economic development over 50 years.
Ghazouani said stronger economic integration among African countries would enable the AU to have a greater presence in the UN General Assembly, the International Monetary Fund, G20 countries and the World Bank.
He added that the African Continental Free Trade Area (AfCFTA) has provided African countries with a framework that can help enhance bilateral trade and foster economic integration.
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