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Africa: Academic urges economic justice actors to fight both illegal and licit financial flows, adopt more nuanced approach

Author: Patrick Bond, University of Kwazulu Natal in Pambazuka News (Africa), Published on: 2 September 2015

'Retreat of foreign investment from Africa means less looting', 2 Sep 2015:…[A] Zimbabwe NGO conference…was dedicated to fighting illegal capital flight from across the African continent…[Will] the region’s…economic-justice NGOs take the next step and also consider fighting legal financial outflows…?...My argument to the conference…[was that while] so-called “illicit financial flows” (IFFs) reflect…the corrupt ways that wealth is withdrawn from Africa, mostly in the extractives sector…even if IFFs were reduced, there’s another reason that FDI leaves Africa much poorer: what I term Licit Financial Flows (LFFs)…legal profits and dividends sent home to TNC headquarters after FDI begins to pay off…[M]ore nuance is important in terms of which firms are…looting. It’s not just…Western TNCs…South African…companies…[that also] draw out excessive FDI profits [include]…British American Tobacco, SAB Miller…MTN…Vodacom…Naspers…Standard, Barclays, Nedbank and FirstRand [banks]…Sasol…and…Anglo American…The result is the systematic internal looting of Africa by South Africa…[Also refers to Investec, Old Mutual, Didata, Mondi, Liberty Life, De Beers, BHP Billiton, Vale, Rosatom, and Vedanta]

Read the full post here

Related companies: Anglo American Barclays BHP Billiton British American Tobacco De Beers (part of Anglo American) Dimension Data FirstRand Group Investec Liberty Life Lonmin Mondi (part of Anglo American) MTN Naspers Group Nedbank Old Mutual SABMiller (part of Anheuser-Busch InBev) Sasol Standard Bank Vale Vedanta Resources Vodacom