NAIROBI (Xinhua) --
African governments were on Monday
urged to tighten loopholes in their revenue collection to help
fund development programs.
Alvin Mosioma, Africa
Executive Director of Tax Justice Network, a coalition of
researchers on tax systems, said once loopholes that currently
exist in collection are addressed, the continent’s domestic
revenue are likely to improve that could help in improving lives
of the populations.
"Africa can no longer let others drive its development
"We need to take ownership and use the revenues well for the
good of the population," Mosioma said during an International
Tax Justice Conference in Machakos, east of Nairobi.
He noted that Illicit Financial Flows (IFF) is bleeding the
continent dry as most multinationals involved in oil, mining and
gas industry rarely pay taxes commensurate to what they reap
from the continent.
He said the discussions on IFFs have been most urgent, yet
the developing world has lost it again after a meeting in
Ethiopia last month failed to conclusively deliberate on the
"Tax evasions by the big multinational companies severely
limit the capacity of the developing countries to raise their
domestic resources to implement development programs," he added.
According to a African Union and UN Economic Commission for
Africa joint report conducted in 2014, Africa loses massive
financial resources amounting to 50 billion U.S. dollars
annually through illicit activities of multinationals and rich
Over the last 50 years, Africa is estimated to have lost in
excess of 1 trillion dollars through IFFs alone, a sum that is
equivalent to all the Overseas Development Aid (ODA) to all
African countries received during the same period.
The report says that the effects of the loss mean loss of
jobs, income, education and equipped health facilities, areas
that are effective in transforming the economy of the countries.
Dereje Alemayehu, a Senior Academy Advisor at the Tax Justice
Network-Africa, called on African leaders to curtail IFFs and
transform the funds recovered into a powerful tool for enhancing
domestic resource mobilization to spur the continents
He said that tax is the most reliable and sustainable source
of financing development in the poor African countries, adding
that without dependence on tax, countries are forced to rely on
donations from the developed countries.
Tax Justice Network-Africa has launched an annual training
program to help bridge an existing knowledge gap on tax justice
in Africa and empower partners across Africa.
emphasises conducive business environment for investors
KIGALI Rwanda (Xinhua) --
Rwanda president Paul Kagame has called on his
leadership to do whatever it takes to provide favorable business
environment for both local and foreign investors.
The head of state was speaking while inaugurated Kigali City
Hall and a nearby commercial complex, M Peace Plaza in busy
shopping hub in downtown Capital, Kigali.
Both buildings are expected to host a number of businesses.
Addressing a wide range of members of Rwanda business
community, the president emphasized on conducive business
atmosphere saying that it attracts investments.
"Achieving transformation is to change your mindset and
believe that transformation is possible.
"The progress Rwanda has registered within a short period of
time is not the result of an overnight miracle but consistent
hard work," he noted.
Kagame said that even with the development achieved so far,
there was still more to be done and challenged the businesses to
exploit the opportunities available to them.
"The government is committed to improving the lives of its
people through providing a conducive environment for investments
to grow, creating employment opportunities and generating income
for the people," he noted.
The president also called on the government to partner with
the private sector saying that both parties must demand more
from themselves and implored them to attract more investors to
Rwanda has gone ahead to enhance investments by introducing a
new investment law that clarifies potential investment
opportunities in the country as well as the key areas the
government is marketing to investors.
The investment law, launched in Kigali in June to replace one
enacted in 2005 that was limited in scope, seeks to bring 1.12
billion U.S dollars worth of foreign direct investments (FDIs)
by the end of the year.
Figures from Rwanda Development Board (RDB) put the country’s
actual FDIs at 257 million U.S dollars in 2013 and 521 million
U.S dollars in 2014.
The post genocide country has demonstrated consistent strong
performance in the World Bank Doing Business Rankings in recent
years with good progress made across all the key indicators.
The 2015 World Bank Doing Business Report, ranked Rwanda 46th
out of 189 countries globally that are promoting conducive
environment for business.
An Ernst & Young’s report titled, "Africa 2014: executing
growth" South Africa, Egypt and Morocco, respectively, topped
the list of 15 countries on the continent that have enjoyed a
dominant share of FDI between 2007 and 2013.
Rwanda made it to that list in 15th place behind its East
African counterparts Kenya, Tanzania and Uganda which were
ranked 6th, 10th and 11th, respectively.
affecting external investment to Africa: Afreximbank
LUSAKA Zambia (Xinhua) --
Negative perceptions about the economic
environment in Africa was a key factor in militating against the
flow of external investment into Africa, says the African
Export-Import Bank (Afreximbank) in a statement emailed to
Xinhua on Monday.
Denys Denya, the bank’s executive vice-president in charge of
finance, administration and banking services, said African
governments as well as other stakeholders needed to fight to
correct the negative perceptions in order to attract capital
into the continent.
According to him, such negative perceptions often did not
reflect the true situation in countries concerned, adding that
the perceptions should be challenged with positive information
about the continent.
The official was speaking at a panel discussion on how to
attract foreign investment into Africa in Dubai organized by the
Winter School Conference of the Institute of Chartered
Accountants of Zimbabwe, according to the statement.
According to him, there were perceptions of policy
inconsistency, corruption and lack of judicial independence in
countries across the continent,
Afreximbank is the foremost Pan-African multilateral
financial institution devoted to financing and promoting intra-
and extra-African trade.
The Cairo-headquartered bank has provided credit facilities
totaling 35 billion U.S. dollars to African business since its
inception in 1993.