Zambia Lost $8.8 billion in illicit outflows between 2001-2010 – GFI report

Filed under: Editor's Choice |

Illicit financial flows due to crime, corruption, and tax evasion cost Zambia $8.8 billion from 2001-2010, finds a forthcoming report from Global Financial Integrity (GFI).

Sarah Freitas, a GFI Economist who co-authored the report with GFI Lead Economist Dev Kar, previewed some findings from the report, which looks at every country in the developing world, for the nation of Zambia in a blog post on the website of the Task Force on Financial Integrity and Economic Development.

Ms. Freitas argues that capital flight—both licit and illicit—is draining tremendous amounts of money from the Zambian economy, which remains poor despite massive natural resource wealth. She writes:

“Our research finds that $8.8 billion left Zambia in illicit financial flows between 2001 and 2010. Of that, $4.9 billion can be attributed to trade misinvoicing, which is a type of trade fraud used by commercial importers and exporters around the world.

“This is a very serious problem. Zambia’s GDP was $19.2 billion in 2011. Its per-capita GDP was $1,413. Its government collected a total of $4.3 billion in revenue. It can’t afford to be hemorrhaging illicit capital in such staggering amounts.”

The full report, Illicit Financial Flows from Developing Countries 2001-2010, will be published on Monday, December 17th, 2012 at 18:59 EST (23:59 GMT), and will include data from 150 different developing and emerging countries. The forthcoming study is the annual update of Global Financial Integrity’s illicit financial flow estimates.

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8 Responses to Zambia Lost $8.8 billion in illicit outflows between 2001-2010 – GFI report

  1. The MMD government is the 1 to blame because of being selfish.

    brevin.malitti - December 16, 2012
    20:18

  2. And Mahtani organised it all and collected 50% of it in his Swiss bank account.

    Limnothrissa - December 16, 2012
    18:58

  3. No single Zambia government has been committed to the economic development of our motherland. If any, it dies out as soon as the sweet power sets root in the political leadership’s blood stream.
    Zambia needs a professional civil service that will ride above politics. Tax collections, correct pricing, import export control/monitoring, employment policing, savings/investment direction are things that a professional civil service and quasi-government institutions can easily address.
    Wake up Zambia!!

    Chanel - December 16, 2012
    18:51

  4. Now Zambians are feeling the impact of wat MMD has left behind, why put the blame on PF so soon?

    malita - December 16, 2012
    17:21

  5. Not surprising. We are paying for carrying a basket of the same eggs for closer to 3 decades

    Dr. Savimbi - December 16, 2012
    15:30

  6. AS RB RECEIVES AWARD FOR REIGNING DURING THAT PERIOD. SOME OF THESE AWARDS ARE FAKES.

    Tikambeko - December 16, 2012
    14:03

  7. What do u expect when through out you had Kolwestans running the country?

    Defend Democracy - December 16, 2012
    06:49

  8. Zimbwiland is poor because Zimbwis are Stupid

    Simon Mwansa Kapwepwe - December 16, 2012
    06:33