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Comment on Misinvoicing – The hidden hand of illicit financial flows by Anonymous
['Malcolm Ray', 'Root', '--M-A-Box-Bp', '--M-A-Box-Bp-L', '.M-A-Box', 'Width', 'Margin-Top', 'Important Margin-Right', 'Important Margin-Bottom', 'Important Margin-Left']
Comments for Good Governance Africa
Drawing on overall trends in illicit financial flows out of Africa between 1980 and 2018, a recent Brookings Institute Africa Growth Initiative policy brief explains transfer pricing in a colder light.
Using trade misinvoicing and net errors and omissions to calculate aspects of illicit financial flows between 1980 and 2018, the Brookings data show that sub-Saharan Africa received nearly $2 trillion in FDI but lost more than $1 trillion in outbound illicit financial flows.
The top four emitters of illicit flows – South Africa, the Democratic Republic of Congo (DRC), Ethiopia and Nigeria – account for more than 50% of total illicit financial flows from Africa (see Table 1).
Reflecting the dramatic increase in China-Africa trade between 1980 and 2018, China hosted 16.6% of all estimated illicit flows from sub-Saharan African countries, almost double that of the United States (9.1 %).
In its final report, the DTC pointed out that tax haven jurisdictions and harmful preferential tax regimes distort financial and investment flows among countries.