INTRODUCTION

In 1961, four years after winning political independence for Ghana, President Kwame Nkrumah described Africa as a continent where the paradox of poverty existed amid plenty, and scarcity amid abundance (Worger, Clark & Alpers 2010: 156). He argued that true economic independence could be won only through African unity and solidarity, and saw that era as a unique moment filled with great opportunity for Africa. He believed that, individually, the independent states of Africa – some of them potentially rich, others poor – could do little for their people. Nevertheless, together, by mutual help, they could achieve much (Worger, Clark & Alpers 2010).

Nkrumah's ideas are more important today than ever. Illicit financial flows (IFFs) are eroding current advances in the rule of law, democracy, human rights, social and economic justice and – above all – African unity and solidarity. Revenue leaves Africa via both legal and illegal means, often with African states’ collusion (UNECA 2015). Consequently, African states lack adequate revenue to fulfil their human rights obligations, conduct free, fair and regular elections and pursue peace, security and stability.

In 2016 the “Panama Papers” revealed that prominent political leaders, government officials, judges and people related to them from at least 16 countries in Africa were listed as shareholders, directors and beneficiaries of secret offshore shell and mailbox companies. In 2017 the “Paradise Papers” presented a similar situation regarding at least ten individuals or companies from seven countries in Africa. In 2018 the revelations expanded with information from the “Mauritius leaks”. More recently, in 2021 the Pandora Papers revealed that nearly 50 politicians and public officials from 18 African states were connected to offshore entities.

These revelations confirmed findings by the African Union High-Level Panel on IFFs regarding tax havens, financial secrecy jurisdictions and opacity on beneficial ownership of firms (UNECA 2015). The evidence presented a network of offshore accounts and complicated investment vehicles shrouded in secrecy, allowing tax avoidance and evasion. The South African president, Thabo Mbeki, contended that if not earlier, at least now, firm action from African governments and the rest of the world was essential (UNECA 2015).