Namibia loses N$1B in illicit financial flows

Namibia loses an average of N$4,6 billion annually as a result of money laundering, bribery and tax evasion through illicit financial flows (IFFs), according to a report by the think tank Global Financial Integrity.

This is as the Bank of Namibia (BoN) announced the successful conclusion of a pilot project focused on defining, estimating, and sharing data regarding IFFs from Namibia.

“A report to this effect will soon be tabled before Cabinet, and once approved, the calculations of estimated IFFs in Namibia will be disclosed,” BoN spokesperson Kazembire Zemburuka said.

A report from Global Financial Integrity released last year shows between 2009 and 2018, IFFs originating from Namibia reached a staggering N$46,9 billion, with an average annual outflow of N$4,6 billion a year.

In 2013, Namibia held the 14th position in Africa and 65th globally in IFFs, with an average of N$17,7 billion per year and a cumulative total of N$177,7 billion from 2004 to 2013.

BoN’s pilot project also calculated potential losses suffered by public finances, including uncollected value added tax, customs duties, and corporate taxes, as a result of illicit outflows.

“As an outcome of this project, and following approval by the minister of finance and public enterprises, BoN has now established a temporary IFFs national project office to administer and execute the remaining project tasks under SDG 16.4.1 and monitor the implementation National Action Plan recommendations to tackle IFFs,” Kazembire said