President Nana Addo Dankwa Akufo-Addo has urged African leaders to take immediate action to stop illicit financial outflows from the continent, emphasiding the significant loss of resources needed for Africa’s development.

Speaking at the opening of the Sixth African Union (AU) Mid-Year Coordination Meeting in Accra on Sunday, 21 July 2024, President Akufo-Addo highlighted the critical need to address this issue.

“Despite the recommendations and the call to action, we have struggled to curb effectively these flows. The persistence of illicit financial flows undermines our ability to finance development projects, weakens governance structures, and perpetuates inequality,” he stated.

He called for the implementation of the Mbeki Commission’s recommendations on illicit financial flows from Africa, which had highlighted the alarming scale of illegal resource siphoning since 2011.

The AU meeting, themed: “Educate an African Fit for the 21st Century: Building Resilient Education Systems for Increased Access to Inclusive and Lifelong Quality and Relevant Learning in Africa,” aimed to harmonize the AU’s policies with those of the Regional Economic Communities (RECs) and the Regional Mechanisms (RMs).

The event saw participation from African Heads of State and Governments, regional economic community leaders, regional mechanism heads, and AU commission members.

President Akufo-Addo underscored the importance of reclaiming lost resources to enhance development financing and ensure that Africa’s wealth benefits its people.

“By reclaiming these lost resources, we can boost our development financing and ensure that the wealth generated within Africa remains in Africa to benefit our people,” he said.

Additionally, President Akufo-Addo proposed that African countries deposit 30 percent of their reserves in African multinational banks instead of foreign ones.

He argued that this would improve the continent’s financial self-reliance and the capacity of its financial institutions.

 “By retaining a sizable portion of our reserves within the continent, we can enhance the stability and liquidity of our financial systems, providing a stronger foundation for economic growth,” he asserted.

Expressing optimism, President Akufo-Addo added: “I am hopeful that the AU Commission will complete its evaluation of the proposal soon so that action can be taken on it as quickly as possible.”

AU Chairperson Mr. Mohamed Ould Ghazouani highlighted the importance of effective coordination between the AU and regional blocs for continental integration. He noted that the Union aims to raise about $100 billion and pointed out that the African Continental Free Trade Area (AfCFTA) provides a framework for enhancing bilateral trade and eUSDconomic integration among African countries.

“A strong economic integration among African countries would allow the AU to have a bigger presence at the United Nations General Assembly, the International Monetary Fund, G20 nations, and the World Bank,” Mr. Ghazouani added.