The article sheds light on the subject of IFFs.It reveals that the money lost through IFFs can be enough to wipe out Africa’s total external debt of around $250 billion and still leave $600 billion for poverty alleviation and economic growth. The direct effects of illicit financial flows include lost investment in poverty reducing programmes such as health, education and job creation. The indirect effects include lower per capita investment and income. Over the course of the last 50 years these have gradually evolved. They have become more complex. Centralised public sector corruption has transformed into decentralised private sector corruption.The main sources of Illicit financial flows typically arise from corruption, illegal exploitation, and tax evasion. Thus they are primarily a governance problem arising from weak institutions and inadequate regulatory infrastructure. The article also unravels efforts crucial to stemming the scourge of IFFs.
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