Zambia losing US$3 billion through illicit financial flows

A study by the civil society in Zambia has revealed that the country is losing US$3 billion annually through illicit financial flows.

Speaking during the launch of the ‘stop the bleeding’ campaign, a campaign against illicit financial flows in Lusaka this morning, Centre for Trade Policy and Development (CTPD) Executive Director Isabel Mukelabai says Government is being urged to act against illicit financial flows and stop the bleeding from the Zambian economy.

Ms. Mukelabai says the money being lost can be used to finance the provision of public services such as health and education as well as critical national development projects which are key to industrialization.

She says according to an assessment done by the civil society; the country is able to finance 70% of its budget using domestic resources if a plan is put in place to stop illicit financial flows.

She says it is very saddening to see government constantly going to borrow at very huge costs.

Ms. Mukelabai states that government should be more prudent and look at more meaningful ways of beginning to address the issue of domestic resource mobilization.

She says there is serious need to ensure a proper financing mechanism for development is put in place as the country cannot continue to depend on donor funds to drive key social services for the Zambian people.

Ms. Mukelabai further states that the country must take deliberate steps aimed at enhancing capacity to generate revenue and to stop the bleeding.

The Stop the bleeding campaign is part of the Africa wide campaign against illicit financial outflows.