Africa loses $89 billion annually to illicit financial flows…ITUC-Africa

By AKOR SYLVESTER-Abuja

The ITUC-Africa has raised the alarm over the debt status of many African nations, saying Africa loses $89 billion yearly to illicit financial flows.

It said such a huge amount would have been enough for the continent to develop, provide required amenities, and feed its people very well.

On this concern, the ITUC-Africa and its affiliate unions have commenced a continental awareness campaign rally tagged: “stop the bleeding, break debt chains”, in Zambian’s capital city, Lusaka.

The President of ITUC-Africa, Comrade Martha Molema, while addressing the representative of Zambian government on behalf of other governments in the continent, said that African nations need debt relief to enable them stand on their feet and attain meaningful development.

She urged African governments to desist from mortgaging the future of its people and unborn children through borrowing.

The rally, was part of the lineup activities of the ongoing 14th New Year School of the African Regional Organisation of the International Trade Union Confederation, in Lusaka.

At the school, African workers had unanimously posited that the skyrocketing debt of African countries in the international financial institutions, will further exacerbate low wages, hunger and suffering in the continent as a result of austerity measures.

With over five thousand Africans comprising  ITUC-Africa members from different trade unions across the continent, members of Zambian Congress of Trade Unions (ZCTU), concerned citizens, students from universities and  secondary schools who converged at Garden Corner Chilulu Lusaka, the rally procession kickstarted by 9am.

The mammoth crowd had on their hands placards inscribed: “The global financial system works against Africa, restructure it”, “Debt relief: Fairness for African citizens,” “Public debt takes away money for health,” “Lower the cost of sovereign borrowing for countries at risk debt distress,” “Drop the debt; Africa can’t breathe,” “Unsustainable debt unpoprotiontly hurt women and girls,” “More debt, more taxes, more inequalities,”  “We demand debt relief for Africa’s development” and many more.

Tagged “urgent call for bold and transformative solutions to address Zambia’s and Africa’s debt crisis, the African workers’ demand reads; “We, the African Labour Movement represented by the African Regional Organisation of the International Trade Union Confederation, the Zambia Labour Movement represented by Zambia Congress of Trade Unions (ZCTU), the Zambia Debt Alliance, the Stop the Bleeding Campaign, CSOs, Churches and citizens come before you with an urgent plea for bold and transformative solutions to alleviate the crippling debt crisis facing not only Zambia but also many nations across Africa and the global South.

“Our demands are clear, and our resolve unwavering as we stand in solidarity with workers, vulnerable citizenry and communities affected by the burdens of debt, inequitable trade policies, and the climate crisis. The current plight of African and Zambian workers, exacerbated by the weight of national debt and a broken global financial architecture, cannot be understated.

“The burden of debt on African workers and citizens perpetuates poverty, exacerbates inequality, and hinders access to essential services, while undermining economic development and perpetuating cycles of dependency.

“We refuse to negotiate from a position of fear, for we are not a global liability but rather the victims of historical exploitation and systemic injustice perpetrated by slavery, colonialism, environmental exploitation, and the exacerbation of climate crises.

“The global financial rules are rigged and skewed against Africa and most economies in the global south. At the core of our struggle lies the insidious practices of illicit financial flows (IFFs) that siphon off rightful earnings through tax evasion and avoidance, perpetuating poverty and inequality among our people. The policies enforced by international financial institutions such as the World Bank often exacerbate our debt burden, prioritizing structural adjustments that further marginalize workers and vulnerable segments of society.

“Privatization of public services and state-owned enterprises, championed by powerful private players and supported by these institutions, only serves to commodify human dignity and exacerbate inequality. Women, who bear the brunt of unpaid care work and are disproportionately affected by regressive tax policies, are forced into unsustainable debt cycles as basic services become inaccessible.

“Despite previous debt relief efforts, the underlying structural problems remain unaddressed, perpetuating a cycle of poverty and economic dependence. Zambia’s relationship with the World Bank and IMF spans decades, yet solutions offered thus far fail to alleviate our plight, serving the interests of creditors rather than the well-being of our people.

“We demand immediate action: Advocate for structural reforms addressing the root causes of Zambia and other African countries’ debt crisis, including transparency, accountability, and fairness in labour practices and fiscal policies.

“Encourage multinational corporations headquartered in their respective countries to refrain from wage evasion, unfair tax practices, and exploitative resource management, in favour of equitable and sustainable practices. Advocate for a restructuring of the global financial architecture to prioritize the rights and needs of workers over the interests of powerful financial institutions and multinational corporations.

“Support the call for the establishment of a UN Tax Convention that will help to improve the governance of global tax administration in a more transparent, inclusive, democratic, effective and fair manners.

“We call upon the diplomatic community to advocate for structural reforms, transparency, and accountability in fiscal policies and labour practices. Multinational corporations must adhere to national laws, pay fair taxes, and observe ethical business practices for the benefit of all citizens.

“Our message is that Africa will not continue to negotiate out of fear, blackmail and within a rigged global rule regime. We demand our continent genuinely engaged in ways to reverse the historical injustices we have suffered as a people.

“We shall continue to hold our leaders accountable for the fiscal governance of our economies because we believe that continent can build a future of dignity, equality, and prosperity for all.”

Speaking, the President of ZCTU, Comrade Blake Malala, said; “African workers have woken up and will not keep quiet on the issue of debt and borrowing anymore. We shall henceforth engage and hold our governments accountable for the sake of our children and their unborn children.”