Africa losing 58 billion dollars annually

It seems we are condemned to poverty.  It is us the poor who lose to the rich. According to a group of organisations including Health Poverty Action, the African Forum and network on Debt and Development and the World Development Movement among others, USD 192 billion is flowing out of the African continent every year in profits made by foreign companies through tax evasion (Paul Redfan, a special correspondent of the East African newspaper, issue of July 26-august 1, 2014).

In contrast USD 134 billion flows into the continent in form of loans, foreign investment and aid. The result is Africa is losing USD 58 billion a year. The report claims that this loss is not only repatriation of profits but illicit financial flows, illegal logging and fishing among other things. The report says that Africa is forced to say a further USD 10.6 billion to adapt to the effects of climatic change that it did not cause.  Mr. Martin Drewey, the Director of Poverty Health Action describes it as looting. He says “let us use more accurate language. It is sustained looting the opposite of generous giving.” When you do not have income and the little you have is siphoned away, you are condemned to poverty. It is not surprising that there is a school of thought that says that poor Africans should be given money rather than let them work. Is Africa’s leadership aware of this challenge?