Fighting money laundering: The challenges in Africa
Crime undermines Africa’s development efforts - a range of initiatives have been undertaken to address money laundering and the financing of terrori
A 2005 study by the UNODC on Crime and Development in Africa shows the emergence of organised crime on the continent and its links to conflict. It notes that the growth in international commerce and transport has made the countries of Sub Saharan Africa, with its weak law enforcement capacity, an ‘ideal conduit’ through which to extract and trans-ship a range of illicit commodities, ranging from drugs, firearms, human beings and minerals to timber and ivory. Because crime undermines Africa’s development efforts, a wide range of initiatives have had to be undertaken, at both international and local level, to address money laundering and the financing of terrorism. However, the task of addressing these issues in the ‘African context’ remains a daunting one, raising a number of challenges. These include the scarcity of resources, highly informalised economies, cash-based economies, weak institutional frameworks, low awareness levels and competing socioeconomic development priorities.
The author argues that some of these challenges are unique to the countries of sub-Saharan Africa. It is critical for any strategy or programme addressing money laundering and terrorist financing to be informed by the African reality. The pace of implementation of measures to combat money laundering and terrorist financing will be determined by the progress achieved in addressing these challenges. Improved pace and progress will only be realised once the strategies and programmes are tailored to reflect the realities of the African continent.
About the author
Humphrey Moshi is a Professor of Economics at the Economic Research Bureau of the University of Dar es Salaam. He holds several degrees in business studies and economics from the University of Dar es Salaam and the University of Meunster, Germany. He has served as a visiting scholar at the International Monetary Fund, Washington, D.C. and at the University of Mannheim, Germany. Dr. Moshi’s research interests span public economics, macroeconomics, financial corporate governance and private sector development. He has written, co-written and edited five books on economic issues, and published more than 60 scholarly articles. He has been a consultant to a number of international, regional and national organisations and numerous private corporations.
