Nairobi: The Head of Programs at Transparency International Kenya, Gibson Mwaita, has emphasized that Africa's ongoing battle against corruption and illicit financial flows (IFF) will remain incomplete without full disclosure of beneficial ownership. He highlighted that anonymous corporate structures continue to protect corrupt individuals, facilitating tax evasion, conflicts of interest, and the illegal transfer of billions of dollars out of the continent each year.
According to Ghana Web, Mwaita shared these insights during an interview with Ernestina Serwaa Asante at the AFROMEDI VI event held in Nairobi, Kenya. He noted that those who expose corruption and financial misconduct often face intimidation and legal risks, underscoring the need to protect whistleblowers and journalists to dismantle corruption networks and uphold public interest.
The Extractive Industries Transparency Initiative defines a beneficial owner as the actual person who profits from or controls a company's activities, as opposed to a proxy or legal entity. Mwaita stressed that asset recovery is crucial for promoting fiscal justice, and beneficial ownership transparency plays a vital role in revealing the anonymous company ownership structures that facilitate corruption, tax evasion, and illicit financial flows, particularly in the extractive sector.
He further explained that access to information is essential for public accountability. Citizens, journalists, and oversight institutions must have timely access to debt agreements, extractive contracts, public expenditure data, and revenue flows to effectively scrutinize public resource management and borrowing decisions. "Whistleblower protection is equally critical," Mwaita added.
This year's AFROMEDI VI focused on the theme, 'Partnering with Media to Advance Socio-Economic Justice and Africa's Common Position on Debt,' highlighting the media's role in addressing governance deficiencies and amplifying citizens' voices. Mwaita argued that access to information is crucial for oversight institutions, journalists, and citizens to examine public resource management and borrowing decisions.
Despite Africa's wealth in natural resources, the continent continues to struggle with debt, weak governance systems, and illicit financial flows. Mwaita pointed out that Africa consumes more imports than it produces, undermining its capacity to retain value and sustainably finance its development.
Recent data indicates that Africa loses approximately $90 billion annually through illicit financial flows, a sum comparable to its yearly debt repayments and significantly greater than the development aid it receives. Experts caution that without stronger transparency measures, beneficial ownership registries, and coordinated asset recovery mechanisms, the continent will find it challenging to achieve sustainable growth.
The sixth edition of the AFRODAD Media Initiative (AFROMEDI VI) was organized by the African Forum and Network on Debt and Development (AFRODAD) in partnership with TI-Kenya and Stop the Bleeding in Nairobi, Kenya.