South Africa urges G20 to address illicit financial flows costing Africa over R1.58 trillion annually
South Africa has urged the world's largest economies to take more decisive action against illicit financial flows
Image: Jacques Naude / Independent Newspapers
South Africa urged the world's largest economies to take more decisive action against illicit financial flows depriving African countries of essential resources needed for their development.
During her opening address at the G20 Development Working Group meeting in KwaZulu-Natal on Sunday, Maropene Ramokgopa, the Minister in the Presidency for Planning, Monitoring, and Evaluation, emphasised that the continent around $88.6 billion (over R1.58 trillion) each year due to illegal financial activities.
South Africa has urged the world's largest economies to take more decisive action against illicit financial flows
Image: GCIS
"The issue of Illicit Financial Flows remains a critical challenge for many countries, especially on the African Continent. According to the African Union Economic Commission for Africa’s High-Level Panel on the Illicit Financial Flows, led by former President of South Africa, His Excellency, President Thabo Mbeki, the African Continent loses an estimated $88.6 billion annually due to the Illicit Financial Flows," she said.
"Evidence from sources such as Transparency International and Corruption Watch find that many cases of Illicit Financial Flows coming out of Africa end up in wealthy nations, far from where the corruption originated from."
South Africa has also voiced strong support for the continued work of the Financial Action Task Force
Image: GCIS
South Africa also voiced strong support for the continued work of the Financial Action Task Force in identifying systemic gaps and enhancing international cooperation.
Ramokgopa urged the G20 to adopt a development-focused approach to financial integrity, emphasising transparency, fairness, and capacity building.
“We urge the G20 to adopt a development-centred approach to financial integrity, grounded in transparency, fairness, and capacity support,” she said.
The G20 is an international forum comprising 19 countries and the European Union. Its members account for about 85% of global gross domestic product (GDP), over 75% of international trade, and around two-thirds of the world’s population.
South Africa became first African country to become the president of the G20 in December 2024 and will hand over the presidency to the US at the end of 2025.
mthobisi.nozulela@iol.co.za
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