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Article

1 Sep 2014

Author:
Briggs Bomba, Trust Africa, in allAfrica

Opinion piece identifies illicit outflows and tax avoidance as major contributors to Africa's persistent poverty and underdevelopment despite continent's abundant natural resources

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“Africa: Why Are We So Poor? Yet We Are So Rich?”, 12 Aug 2014:  Africa's poverty persists in the midst of a wealth of natural resources...[In the light of] [t]he disparity between sustained GDP growth rates and Africa's seemingly obstinate and perverse state of underdevelopment, extreme poverty and deepening inequality…[t]he question that is being asked by many…is this: Why are we so poor? Yet we are so rich?... By exploiting weaknesses in investment contracts and loopholes in valuation, pricing and taxation regimes, corporations are able to use all sorts of devices to minimize their tax exposure and illicitly move capital out of the region to preferred "tax haven" jurisdictions. These illicit flows rob poor countries of greatly-needed public revenue that could be mobilized and invested to fight poverty, build infrastructure, improve livelihoods and finance development…

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