Tag Archives: EAC

Infographic:Africa’s Largest Economies By GDP.(Of MNCs Bleeding A Continent).


World Bank Dataviz.(Link to the infographic with the GDP stats).

Countries Featured In The Infographic:

South Africa,Egypt,Nigeria,Algeria,Morocco,Angola,Libya,Tunisia,Kenya,Ethiopia,Ghana and Cameroon.

Africa is not poor

Today,Africa’s combined GDP stands at $2 trillion,with many an African country’s GDP growing at 5-6% per annum.The Gross Domestic Product data provided in the infographic however,is from between the years 2005-2009 and as such,it would be vital to note that as at 2012,Kenya’s GDP for instance stood at about 34 billion dollars.South Africa-Africa’s largest economy stood at about $400 billion,almost double the 2009 mark featured in the infographic.Massive potential for growth abounds because Africa is not poor,it is being looted,or better yet,it is just mismanaged.Indeed a UN Economic Commission for Africa report probing illicit financial flows from the continent paints an appalling picture of the  amount of money leaving Africa illicitly.It says the figures on transfer of funds from the developing world to the so-called developed countries could amount to a staggering 1.5 trillion every year.Chaired by former South African president,Thabo Mbeki,the high-level panel which compiled the report points an accusing finger at Multinational Corporations  that apply different means  to siphon off vast amounts that the developing world,including Africa,desperately needs.MNCs account for 66% of global trade totaling to  $44 trillion or there about.MNCs have become the new actors as regards the causative agents of internal displacement in Africa through land grabs.The several ways Africa loses this money include,trade mispricing in invoices exchanged between importers and exporters-both local companies and MNCs,tax evasion,racketeering,counterfeiting,contraband,smuggling,cross-border movements of cash,corruption by government officials and influential businessmen as well as laundered commercial transactions.Africa has lost an estimated $854 billion from 1970- 2008,says the report.”Just one third of the loss associated with illicit financial flows would have been enough to fully cover the continent’s external debt which accumulated to $279 billion in 2008”,notes the report.Kenya’s public debt for instance,currently stands at 48.6 per cent of GDP.Ostensibly,the trend worsened with the average illicit flows amounting to $50 billion per year between 2000-2011.As regards the lucrative business that is ‘dead-aid’ to Africa with an exception of the few success stories of Rwanda maybe,for $1 received in aid,$10 is lost in illicit transfers.

West and Central Africa emerge as the leading ‘victims’ of this continental bleeding.They,both combined, account for 49% of illicit flows from Africa.North Africa accounts for 18% while Southern and Eastern Africa account for 33%.

Specific Countries Cumulative Illicit Flows:Nigeria- $212.7 billion,Egypt-$105.2 billion,South Africa-$81.8 billion,Morocco-33.9 billion,Angola-$29.5 billion,Cote d’Ivoire-$21.6 billion,Sudan-$16.6 billion,Ethiopia-$16.5 billion,Republic of Congo-$16.2 billion.

Closer home,a recent Global Financial Integrity report titled ”Illicit Financial Flows from Developing Countries”, says that countries in the East African Community saw a combined $1.33 billion lost through illicit financial transactions over the past decade.In the 10-year period,details the report;Uganda lost $680 million,Tanzania-$333 million,Rwanda-$158 million,Kenya-$112 million and Burundi-$49 million.China which is fast  becoming EAC’s largest trading partner  ,is the biggest beneficiary of these illicit flows,accounting for an average of 47% of all illicit outflows over the 10-year period,says the report-GFI.The illicit flows from developing countries and emerging markets,it is believed,could be much higher than reported owing to accurate data,the lack thereof.For more on countries in the East African Community, READ:EAC debt grows as $1.3bn silently siphoned outhttp://www.africareview.com//Special-Reports/EAC-debt-

”Africa,with its underdeveloped governance structures,is particularly vulnerable to this form of exploitation.While the outside world has always been very quick to pin the corruption label on Africa,we have always argued that it takes two to make this deadly dance work.Now it is obvious that powerful multinationals are as complicit,in fact more so,in sucking Africa’s lifeblood as the worst local despot,”writes Anne Versi for the African Business Magazine,an AIC publication,in an article titled:”Multinationals ‘Steal’ $50bn Per Year From Africa.

Illicit Financial Flows:As opposed to capital flight which encompasses both licit and illicit cross-border transfer of funds,illicit financial flows are funds that are illegally earned,transferred and used, and cover all unrecorded private financial outflows-GFI.

Source:data.worldbank.com,www.google.com/publicdata,en.wikipedia.org/wiki/Gross_domestic_product,New African Business Magazine-Blogs,Africa Review (http://www.africareview.com).