Africa is losing an estimated $40 billion every year through illicit financial flows (IFFs) in the extractive sector—a major setback to economic development and job creation, according to Mr. Antonio Pedro, Deputy Executive Secretary of the United Nations Economic Commission for Africa (ECA).
Pedro made this known at the High-Level Policy Dialogue in New York, which concluded the 2025 African Dialogue Series themed "Justice for Africans and People of African Descent Through Reparations."
The event, organised by the UN Office of the Special Adviser on Africa and the African Union's Permanent Observer Mission to the UN, gathered global leaders to explore ways to address the continent's economic challenges.
Pedro stressed that these financial leakages are depriving African nations—particularly small businesses and local communities—of critical resources. "Africa cannot afford to continue exporting jobs through raw material exports," he said, pointing out that the extractivist economic model inherited from colonialism remains a major barrier to structural transformation.
He warned that IFFs are more than just accounting irregularities—they are symptoms of deeper economic injustice. Addressing them, he said, must be central to the continent's development policy if Africa hopes to meet its annual need for 20 million new jobs for its growing youth population.
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Pedro urged African governments to move from rhetoric to action by implementing homegrown frameworks such as the African Mining Vision and the African Green Minerals Strategy, both of which advocate for industrialisation, value addition, and local content in mineral resource management.
He added that reforming global financial and governance systems, strengthening local capacities, and promoting sustainable practices across the extractive sector are essential. "It's a joint responsibility—governments, mining firms, financial institutions, and local communities must work together to align expectations and unlock shared prosperity," he said.
Pedro also called for a unified African voice on the global stage to push for fairer international trade and finance policies. He said policy integration across key sectors—trade, industry, energy, and infrastructure—is needed to achieve transformational change.
"The African Dialogue Series is a crucial platform," he concluded. "But beyond the dialogue, we must act decisively to stop illicit outflows, prioritise sustainable development, and ensure that Africa's wealth benefits its people—especially the millions of small businesses that form the backbone of its economy."
