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Article

19 Aug 2014

Author:
Setumo Stone, Business Day

Illicit outflows from Africa ‘mostly from extractive industries’, says AU chair

 "Illicit outflows from Africa ‘mostly from extractive industries’", 15 Aug 2014:…African Union Commission chairwoman Nkosazana Dlamini-Zuma…[s]peaking…at the mining lekgotla in…Johannesburg…said a high level panel, led by former president Thabo Mbeki, to look at illicit trading in Africa had found that mining companies and others in extractive industries were the biggest culprits…Such concern was also flagged…by…Oxfam…[which] said although Africa’s oil, gas and mineral exports amounted to $333bn in 2010, illicit financial outflows — achieved, for example, through tax evasion and trade mispricing by extractive industries — were estimated at $200bn annually, dwarfing the development aid that the continent received…Ms Dlamini-Zuma said plans were under way to assist African countries to sign mining contracts that not only sustained the industry but also gave the host country what it deserved...Ms Dlamini-Zuma said mining companies needed to rethink their interaction with and contribution to the communities in which they operated.