Breaking the Chain: Combating Illicit Financial Flows through Responsible Business Conduct and Enhanced Remedy Mechanisms 

Background 

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Every year, Africa is estimated to lose approximately USD 88.6 billion to illicit financial flows (IFFs), accounting for 3.7% of the continent’s GDP. These illicit flows significantly impact funds available for the provision of public goods and services needed to drive development. They deplete foreign exchange reserves, stifle competition, reduce government revenue, and, ultimately, enhance illegal activity such as corruption, terrorism financing, and money laundering. IFFs further erode public confidence in the rule of law and in institutional frameworks, increasing political instability in a nation.

 

Our tri-country study of Kenya, Ghana, and Tanzania provides a comprehensive overview of the legal and institutional frameworks governing IFFs at international, regional, and national levels and offers recommendations to strengthen the mechanisms to combat IFFs.

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Key Objectives
 

• Based on the findings of our study, the panel discussion will explore how IFFs undermine human rights in Africa and examine practical pathways for businesses, governments, and civil society to strengthen accountability mechanisms and promote responsible business conduct.

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Guiding Questions
 

• How do multinational corporations' tax avoidance strategies directly impact human rights in African communities?

• What role can national human rights institutions play in monitoring business-related IFFs?

• How can affected communities access remedies when IFFs deprive them of essential services?

• What innovative transparency mechanisms can strengthen accountability?

 

Expected Outcomes

 

Participants will gain:

• Clear understanding of IFF-human rights nexus

• Network connections for continued collaboration

• Concrete next steps for implementation