Ten years after a report exposed how billions in illicit financial flows (IFFs) drain Africa’s wealth each year, the continent’s leaders have issued a fresh warning, the problem is getting worse. At the 13th Pan-African Conference on IFFs and Taxation (PAC 2025) in Johannesburg, South Africa earlier this month, experts reported that IFFs have nearly doubled over the past decade, increasing from $50 billion (Shs172.5 trillion) to $90 billion (Shs310.6 trillion) annually.
The gathering, convened by the Tax Justice Network Africa (TJNA) alongside the African Union Commission (AUC), the African Tax Administration Forum (ATAF), UNECA, and the Economic Justice Network (EJN), marked 10 years since the release of the High-Level Panel (HLP) Report on IFFs. Chaired by former South African President Thabo Mbeki, the 2015 report laid bare how billions in untaxed profits, corruption proceeds, and manipulated trade flows were quietly bleeding
Africa’s economies.
What are IFFs and why do they matter?
IFFs refer to money illegally earned, transferred, or used across borders, including proceeds from tax evasion, trade mispricing, money laundering, and profit shifting by multinational corporations. The PAC 2025 Outcome Statement describes IFFs as part of a broader pattern of global economic injustice, noting that they have ‘nearly doubled over the past decade, from $50 billion to $90 billion annually.’
Beyond that, Africa loses $240 billion (Shs828.3 trillion) to corruption, $275 billion (Shs949.1 trillion) through profit shifting, and $70 billion (Shs241.6 trillion) through other leakages each year. ‘Rooted in colonial legacies, patriarchal economies, and global financial exclusion,’ the statement reads, ‘tax regimes and IFFs continue to constitute systemic injustices that undermine Africa’s development and sovereignty.’
These figures are more than abstract statistics. Each dollar lost represents roads unbuilt, hospitals under-equipped, and classrooms unfunded. For governments already struggling with debt and limited fiscal space, illicit outflows erode development capacity and deepen inequality.
Why is this issue back in the spotlight?
When the High-Level Panel released its findings in 2015, it did more than reveal staggering losses. It offered a blueprint for reform, calling on African nations to strengthen tax systems, promote transparency, and push for fairer global tax rules. At the 2025 conference, former president Thabo Mbeki reflected on that journey and warned that despite awareness, the crisis remains unresolved.
‘When the High-Level Panel submitted its report, we sought to make visible what had for too long been hidden-the massive haemorrhaging of Africa’s resources through IFFs. We showed that IFFs were not an abstract problem, but a very real drain on Africa’s capacity to finance its own development,’ Mbeki said.
While acknowledging reforms such as beneficial ownership registers and automatic exchange of information, Mbeki cautioned that Africa’s progress has not matched the scale of the challenge.
‘The struggle against illicit financial flows and for tax justice is ultimately a political one,’ he said. ‘It is about sovereignty, about whether Africa’s wealth will continue to enrich others while our people remain in poverty.’
Who is leading the fight?
A decade on, the fight against IFFs has matured into a continent-wide movement combining technical expertise, political advocacy, and civil society mobilisation.
There are players like the African Tax Administration Forum (ATAF). Representing 42 African tax authorities, ATAF has been at the centre of Africa’s technical push to combat tax evasion. Ms Mary Baine, ATAF’s executive secretary, told delegates that the organisation’s work has yielded measurable results.
‘Cumulatively, assessments totalled $5.4 billion (Shs18.6 trillion), and collections reached $2.5 billion (Shs8.6 trillion),’ she said. ‘In the first seven months of 2025 alone, ATAF achieved $230.1 million (Shs794.1 billion) in additional assessments and $217.2 million (Shs749.6 billion) in collections, primarily from transfer pricing and VAT on digital services.’ ATAF’s focus has included developing transfer pricing frameworks, improving information exchange, and helping member countries legislate against tax evasion.
Yet Baine warned that new forms of financial crimes-cryptocurrency abuse, trade mispricing, and offshore shell companies-are making the fight more complex. To build on its success, ATAF launched the Revenue Action for Development in Africa (RADA) initiative, aiming to double revenue collections within five years to support health, infrastructure, and climate goals.
‘We have the capabilities and the right partners to accomplish it,’ Baine said. ‘ATAF remains committed to mobilising domestic resources in Africa.’
Another player is Tax Justice Network Africa (TJNA). Civil society has been instrumental in keeping the issue alive on the public agenda.
Chenai Mukumba, the Executive Director of TJNA, said the next decade must move beyond advocacy to real implementation.
‘A decade after the High-Level Panel Report, the conversation around IFFs is more urgent than ever,’ she said. ‘Despite progress in awareness and advocacy, the scale of financial outflows continues to undermine Africa’s capacity to finance its own development.’ Mukumba stressed that leaders must turn promises into measurable results. ‘We are at a critical juncture where words and commitments must translate into tangible action. We need champions from across the continent who will ensure that Africa’s wealth works for its people.’
The African Union Commission (AUC) has also made its presence felt. For the African Union, combating IFFs is integral to the continent’s quest for economic sovereignty. Dr Patrick Ndzana Olomo, acting Director of Economic Development, Integration and Trade, said Africa has reached a moment of transformation.
‘There is a transformative shift underway-an inclusive process that is bringing all stakeholders together in the fight against illicit financial flows,’ he said. ‘If we want to finance our own development, we must combat IFFs across the continent and mobilise our domestic resources. Africa has the resources; what we need now is the political will.’
His remarks echoed ongoing efforts to reposition Africa within global tax negotiations, particularly through the UN Framework Convention on International Tax Cooperation, an initiative pushed by the Africa Group to make global rule-making more inclusive. There is also the Economic Justice Network (EJN). Faith-based organisations are lending moral weight to the campaign. Mandla Mbongeni Hadebe, the Executive Director of EJN, reminded delegates that the battle is about more than economics.
‘Our fight against illicit financial flows is not merely technical, it is moral,’ he said. ‘It is about reclaiming Africa’s resources for its people, ensuring that the riches of our land and our labour benefit those who contribute to their creation.’ Calling the conference ‘a rallying cry for action,’ Hadebe added, ‘The fight against illicit financial flows is a fight for life, dignity, and justice. Where our treasure is, there our heart must be also in the service of justice.’
What is next on the agenda?
After four days of debate, delegates adopted a joint Outcome Statement setting out the continent’s next steps. Among the key actions is the rollout of the Anti-IFFs Policy Tracker, a digital tool that will monitor how countries implement anti-IFF legislation. The platform, they said, could save governments up to 2.5 percent of revenue annually through improved transparency and data-sharing.
The statement also called for stronger domestic resource mobilisation (DRM), shifting revenue collection from a narrow tax exercise to a broader economic strategy that empowers local governments, leverages central banks, and expands fiscal autonomy.
At the global level, delegates reaffirmed Africa’s backing of reforms to the international tax architecture, particularly the UN Tax Cooperation Framework, led by the Africa Group.
The goal is to move global tax rulemaking away from exclusive OECD processes to a more equitable multilateral system.
Another major priority is the promotion of health and climate-related taxes, particularly those anchored in the polluter-pays principle, to generate sustainable financing for healthcare, climate adaptation, and low-carbon development.
Finally, the Outcome Statement urged governments to align tax policies with Africa’s industrialisation agenda, ensuring incentives promote value addition, job creation, and local ownership, turning tax policy into a lever for structural transformation rather than a short-term revenue fix.
‘Equitable tax systems are pivotal in financing public goods, building accountable states, and fostering industrialisation,’ the statement concluded, calling for ‘bold and coordinated action’ across African institutions.
So what does the future look like?
Closing the conference, Thabo Mbeki urged African nations to combine technical expertise with political unity. He praised the Africa Group’s success at the United Nations, where developing countries are now helping shape the UN tax convention.
‘Through political unity, driven by the Africa Group, the world finally recognised the need for a universal and inclusive forum,’ he said. ‘But technical competence must be matched with political mobilisation.’
Looking ahead, Mbeki outlined three priorities: strengthening domestic tax capacity, linking taxation to industrialisation, and ensuring Africa’s strong voice in global tax governance.
‘It is not enough to collect more revenue,’ he said. ‘We must design tax policies that actively support Africa’s industrialisation and job creation. Taxation must become a tool of economic strategy, not merely of revenue collection.’
The message from PAC 2025 was clear: Africa knows what to do and now must act. The frameworks exist, the data is clear, and the political pathways are opening. What remains is the will to follow through.
As the Outcome Statement put it: ‘This declaration marks a turning point: we honour the legacy of the HLP Report and commit to building a future where Africa’s wealth serves its people, not external interests.’ For a continent losing $90 billion a year, that commitment could determine whether Africa finally reclaims its financial destiny or continues to watch its wealth flow offshore.