Skip to main content

FDI inflows to Sub-Saharan Africa exceed international aid- AA Report

By Fred Yaw Sarpong

Africa Progress Report (APP) released last Friday by Africa Progress Panel indicated that Foreign Direct Investment (FDI) or private inflows into Sub-Saharan Africa exceed international aid into the region.

The report which was launched by Chairman of the panel, Kofi Annan, former UN Secretary General said private flows, including FDI into the sub-region was about US$55 billion in 2012, compare to about US$48 billion that came from international partners aid to region.

The report advocates for shared responsibility between African leaders and their international partners to promote equitable and sustainable development for Africa. The report which is published every year is the APPs flagship publication.

The report also found that trade mispricing, or losses associated with the misrepresentation of export and import values, alongside other illicit outflows cost the continent US$38.4 billion and US$25 billion respectively between 2008 and 2010. 

Ghana together with Tanzania, Mali, Guinea and Burkina Faso contributed 9% to the world’s production of Gold.

According to him it was "unconscionable that some companies, often supported by dishonest officials, are using unethical tax avoidance, transfer pricing and anonymous company ownership to maximise their profits, while millions of Africans go without adequate nutrition, health and education".

The report revealed in its assessment of the challenges that still face many countries in developing their oil and mineral wealth.

Annan said Africa is standing on the edge of enormous opportunity. ‘Will we invest our natural resource revenue in people, generating jobs and opportunities for millions in present and future generations? Or will we squander this opportunity, allowing jobless growth and inequality to take root? He asked.

He said that in many countries, for example, natural resource revenues are widening the gap between rich and poor. Although much has been achieved, a decade of highly impressive growth has not brought comparable improvements in health, education and nutrition.

‘Indeed, our continent still faces many challenges, but this year’s Africa Progress Report finds good reason to be optimistic. Building on a decade of strong growth, economic governance continues to improve, providing protection against the boom-bust cycle fuelled by earlier commodity booms. Across the region, democracy is sinking deeper roots – and the accountability that comes with democracy strengthens natural resource management,’ said the ex- UN Boss.

The report also shows that, revenues generated for major companies in many cases are more than the gross domestic product (GDP) of the countries they operate in.
The report states that, Shell Oil Company generated revenue of US$467.2 billion in 2012 alone. This is compared to Nigeria's GDP of US$244 billion, Angola's GDP of US$104.3 billion and Gabon's GDP of US$17.1 billion.
Poor governance of state companies and assets are also associated with extensive revenues losses, the report found.
In 2012 Angola was unable to account for US$4.2 billion, according to the report. Nigeria meanwhile was estimated to have lost US$6.8 billion between 2010 and 2012.
Through the report, the Panel recommends a series of policy choices and actions for African policy makers who have primary responsibility for Africa’s progress, as well as international partners and civil society organizations.


Popular posts from this blog

Deputy AG sues Facebooker over 'malicious' Ameri deal

The Deputy Attorney-General and Member of Parliament for Bolgatanga East, Mr Dominic Ayine has filed a defamation suit at an Accra High Court against a Facebook commentator, Evron Hughes.
In Mr Ayine’s statement of claim, sighted by Graphic Online, he accused Mr Hughes of defaming him in a post he authored and published on Facebook on December 21, 2015, titled “RE: AMERI TRANSACTION”.
According to the Deputy A-G, the “false and malicious” post has provoked “public disaffection” against him and exposed him to public ridicule and contempt.
Describing Mr Hughes as a “self-styled social media blogger and a social commentator”, Mr Ayine said the Facebook post had brought his hard-won reputation “as a respected politician, teacher and lawyer” into “hatred, ridicule, odium, discredit, contempt, opprobrium and reproach”.
The Deputy A-G said the “defamatory words” were authored with the sole intent to reduce him in the estimation of all right thinking Ghanaians, adding that he had received numerou…

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…