“This is the culmination of public pressure and the perseverance of the Mbeki panel. African leaders are sending a clear signal that they plan to clamp down on the loss of more than $50bn per year from Africa.
“Multinational companies are identified as the biggest culprits largely through tax dodging. These companies are depriving Africa of vitally needed funds to pay for schools and hospitals, and are undermining the continent’s ability to reduce poverty and increase growth.
“Africa’s leaders must now ensure that the recommendations are promptly implemented to stem the flight of cash and that the money is spent for the benefit of all its people.
“But this can’t be achieved by Africa alone. Rich countries, where most of the money ends up, must support through global action to end corporate tax dodging - including the establishment a UN body to lead the re-writing of the global tax rules.
“Joint action by rich and poor countries on international tax dodging can raise the money we need to end poverty.
“The adoption of the report on illicit financial flows comes at a critical time as Africa looks for sustainable ways to fund development including the implementation of the Sustainable Development Goals to be approved by the UN in September.”
For more information or interviews contact: Charlotte Armstrong, charlotte.armstrong@actionaidorg or +44 (0) 7738 884014