But loans to governments and the private sector (at more than $50bn) can turn into unpayable and odious debt. In fact, even this assessment is enormously generous, because it assumes that all of the wealth flowing into Africa is benefitting the people of that continent. If African countries are to benefit from foreign investment, they must be allowed to - even helped to - legally regulate that investment and the corporations that often bring it. Needless to say, the funds are not currently forthcoming. Our climate crisis was not caused by Africa, but Africans will feel the effect more than most others. $36bn is owed to Africa as a result of the damage that climate change will cause to their societies and economies as they are unable to use fossil fuels to develop in the way that Europe did.
Today’s report estimates that $29bn a year is being stolen from Africa in illegal logging, fishing and trade in wildlife. There are also more indirect means by which we pull wealth out of Africa. OPINION: Africa’s natural resources – From curse to a blessing The City of London is awash with profits extracted from the land and labour of Africa. Then there’s the $30bn that these corporations “repatriate” – profits they make in Africa but send back to their home country, or elsewhere, to enjoy their wealth. These so-called “illicit financial flows” amount to around 6.1 percent of the continent’s entire gross domestic product (GDP) – or three times what Africa receives in aid. Essentially multinational corporations “steal” much of this – legally – by pretending they are really generating their wealth in tax havens. Some of this is direct, such as $68bn in mainly dodged taxes. Sure, there’s money going in: around $161bn a year in the form of loans, remittances (those working outside Africa and sending money back home), and aid.īut there’s also $203bn leaving the continent. Based on a set of new figures, it finds that sub-Saharan Africa is a net creditor to the rest of the world to the tune of more than $41bn.
That’s the essence of a report ( pdf) from several campaign groups released today. INFOGRAPHIC: Mapping Africa’s natural resources When we read it, we reinforce assumptions and stories about Africa that we’ve heard throughout our lives.
It’s a simple statement, repeated through a thousand images, newspaper stories and charity appeals each year, so that it takes on the weight of truth. Africa is poor, but we can try to help its people.
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