Domestic Resource Mobilization: Fighting Against Corruption and Illicit Financial Flows

Abstract

The AU Commission’s report provides an in-depth analysis of issues related to domestic resource mobilization and illicit financial flows in Africa. The first part addresses key questions such as: how governments can respond to illicit financial flows in Africa; what lessons can be learned from Asia; and what role south-south co-operation might play in combating illicit financial flows. The second part presents specific actions that are being taken by AU member states, to mobilise domestic resources and fight against corruption and illicit financial flows. The report aims to encourage peer learning among member states and development partners. Tackling trade invoice irregularities, tax evasion, abusive transfer pricing, criminal financial flows and corruption will help mobilise additional resources for the implementation of Agenda 2063 and reduce Africa’s reliance on external funding. The report is the result of a collaboration between the African Union Commission, AU member states, the OECD Development Centre and other international organisations.