Africa is Plundered for Billions Each Year, Research Confirms. | Cuba Inside The World – The research claims that approximately US$203 billion flowed out of the country in 2015 in the form of repatriated profits of multinational corporations, money moved into tax havens, and costs imposed by climate change adaptations. This massive outflow of capital from the historically colonized continent far exceeds that which flows into it, which according to the coalition is only US$162 billion.
“Africa is rich,” the study notes. “ Its people should thrive, its economies prosper. Yet many people living in Africa’s 47 countries remain trapped in poverty, while much of the continent’s wealth is being extracted by those outside it.”
The study also notes the role that Western governments and international organizations have in “pushing economic models that fuel poverty.”
For example, the study describes how extractivist companies which export minerals, oil, and gas, are able to export massive quantities of wealth while paying little in taxes due to institutionalized tax incentives. The study notes however that these tax policies “are the result of long standing policies of Western governments insisting on Africa lowering taxes to attract investment.”
Companies are also frequently able to avoid paying what little taxes they do owe through the illicit use of tax havens.