Uganda is losing approximately $500 million (Shs1.74 trillion) annually to money laundering and other illicit financial flows, according to data from the Uganda Revenue Authority and the Ministry of Finance. This figure represents about 0.6 percent of the $88.6 billion that Africa loses annually to such schemes.
Africa loses
At the ongoing high-level Africa Civil Society Conference, focusing on strengthening Africa’s fight against money laundering, terrorism financing, and illicit financial flows, taking place in Gaborone, Botswana, financial experts revealed that Africa is losing up to $88.6 billion annually through money laundering and illicit financial outflows. The Executive Director of Civic Advisory Hub-Uganda, Mr Yona Wanjala, said if Africans were to successfully tackle this challenge, it would save a lot of money to invest in transformation. ‘Africa is grappling with challenges of money laundering and terrorism financing. Statistics reveal that on an annual basis, we lose close to $88.6 billion. If this money were ploughed back, it would help us achieve many goals,’ Mr Wanjala said.
Africa’s commitment
The conference, organised by Civic Advisory Hub-Uganda, Spaces for Change (Nigeria), the Ministry of Labour and Home Affairs of Botswana, and the Institute for Combating Illicit Financial Flows at the University of Botswana, has brought together civil society leaders, government representatives, regional bodies, regulators, and financial institutions to renew their commitment to combating money laundering, countering terrorism, and disrupting its financing across Africa.ing vice
While officiating at the conference held under the theme ”Placing civic space at the heart of combating money laundering, countering terrorism, and its financing in Africa,” the President of Botswana, Mr Gideon Boko, urged African leaders to put an end to the theft of public resources, highlighting it as one of the major sources of laundered funds. ‘What money is this that is being laundered? Where does it come from? Why do we have the problem? This is because of this ingrained weakness or propensity to enrich themselves to amass obscene levels of wealth. Those who hold public office turn the public purse into their own private chest of resources. They steal resources entrusted to them and appropriate these for their own benefits,’ he said
LAUNDERING FIGHT IN UGANDA
As Uganda prepares for its next Financial Action Task Force (FATF) evaluation in 2028, the country faces a critical test in its fight against money laundering and terrorism financing. While the country registered a major milestone by coming off the FATF ”grey list” in February 2024, experts have since warned that the risk of backsliding remains high.