Akinwumi Adesina: Africa Must Plug $580bn Leak to Reduce $2tn Debt

African Development Bank President, Akinwumi Adesina, emphasized the urgent need for African governments to tackle corruption and illicit financial flows, which cost the continent $580 billion annually. Adesina stressed that addressing these issues is crucial as Africa's debt approaches $2 trillion.

He highlighted the importance of taking visible action to curb these outflows and access concessional financing. Adesina noted that illicit financial flows, rising debt, and corruption are the most pressing challenges facing African economies.

Africa loses significant funds through tax evasion, trade misinvoicing, corruption, and money laundering, which could otherwise be used for infrastructure, education, health, and job creation. The African continent faces an annual infrastructure backlog of up to $170 billion, making it essential to reduce these financial leakages to meet development needs.

Despite this, many governments are struggling with high debt servicing costs, with half of African governments spending a significant portion of their revenue on interest payments, leaving little room for social investments.