Sierra Leone and African Development Bank Target $90 Billion in Annual Illicit Financial Flows

 

A four-day high-level seminar concluded last week with concrete recommendations to combat the estimated $90 billion that Africa loses annually to illicit financial flows, as the African Development Bank Group (www.AfDB.org) and Sierra Leone Government intensify efforts to strengthen natural resource governance.

More than 70 stakeholders from government, civil society, private sector, and international organizations gathered at The Place Resort in Tokeh  under the theme “Harnessing Africa’s Wealth: Curbing Illicit Financial Flows for Resilient Growth and Development.” Illicit financial flows are among Africa’s most pressing economic challenges.

The dialogue produced specific policy recommendations, including establishing national communities of practice, implementing institutional reforms, and enhancing transparency in resource-backed lending (RBL). Participants agreed that RBLs should be treated as “an option of last resort” and used only with maximum transparency and for investments that directly contribute to repayment capacity.

“This initiative can help us improve revenue from natural resources by blocking leakages through illegal natural resource trade and improved management of resource-backed lending,” said Sierra Leone’s Finance Minister Sheku Ahmed Fantamadi Bangura.

The workshop sessions focused on identifying illicit financial flows, managing resource-backed lending, and developing transparent governance mechanisms. Participants reviewed findings from the Sierra Leone Country Diagnostic Report, which examined illegal natural resource trade and institutional capacity gaps.

International expert Bernd Schlenter from Rand Sandton Consulting Group presented technical insights on illicit financial flows patterns and policy recommendations during the intensive sessions.

Halima Hashi, African Development Bank Country Manager for Sierra Leone, noted the project aligns with the Bank’s Ten-Year Strategy 2024-2033 and Natural Resources Management and Investment Action Plan 2025-2029.

Broader Impact

The GONAT Project, funded by the African Development Bank’s Transitional Support Facility, has three pillars: policy analysis and diagnostics, capacity strengthening, and high-level policy dialogue. The initiative supports the African Development Bank’s mission to optimize Africa’s natural wealth for inclusive prosperity.

“Achieving transparent and equitable natural resource management is not merely a technical exercise—it is a strategic imperative for Africa’s future,” said Dr. Eric Ogunleye, Director of the African Development Bank’s African Development Institute.

The seminar produced a draft communique for national adoption, with participants pledging to transform the policy recommendations into actionable reforms.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media Contact:
Natalie Nkembuh
Communication and Media Relations Department
media@afdb.org