The President of the African Development Bank (AfDB), Mr. Akinwunmi Adesina, has revealed that Africa is losing more than US$580 billion annually to corruption and illicit capital outflows, a staggering figure that continues to cripple economic growth across the continent.
In an interview with Bloomberg, Adesina stressed that these losses are a major barrier to development, outweighing the continent’s capacity to fund critical infrastructure and social services.
He likened the situation to pouring water into a leaking bucket, noting that no amount of external support can fix Africa’s challenges if internal financial leakages are not addressed.
According to AfDB data, the continent loses approximately US$1.6 billion every day to financial misconduct. This includes US$90 billion in illicit financial flows, US$275 billion lost through profit-shifting by multinational companies, and US$148 billion drained through corrupt practices.
These massive losses come at a time when Africa faces an annual infrastructure funding gap of US$170 billion. Instead of investing in development, many African nations are burdened by rising debt service costs, with over half now spending more on interest payments than on healthcare.
Adesina pointed out that while concessional loans and debt restructuring are helpful, the most effective path forward is to plug the financial leaks.
“Curbing corruption and stopping illicit capital flight is the key to retaining Africa’s wealth and reducing dependence on external borrowing,” he said.
As Africa’s total debt nears US$2 trillion, experts are warning that unless concrete steps are taken to improve financial governance, the continent’s long-term economic prospects could remain under threat.
