This study conducts a literature review of the causes, nature and extent of illicit financial flows in the natural resources sectors of Africa with emphasis on Ghana and makes recommendations for addressing this menace. Available research evidence shows that illicit financial flows in the extractive sectors occur through three main sources, namely corruption, illegal exploitation, and tax evasion. The quest for structural transformation in Africa requires raising the continent’s productive capacity. However, achieving this developmental state in Africa has been significantly constrained by the financial structures of illicit financial flows (IFFs). IFFs undermine the potential for economic transformation in the continent through, draining tax revenues and scarce foreign exchange resources, stifling growth and socioeconomic development, and weakening governance .
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