UNCTAD published ECOPER’s evaluation report on UN Development Account project 1819Y on Defining, estimating and disseminating statistics on illicit financial flows in Africa.
The project “Defining, Estimating, and Disseminating Statistics on Illicit Financial Flows (IFFs) in Africa” was designed to enhance the statistical capacity of African governments to measure and report on IFFs. This initiative was crucial for supporting the 2030 Agenda for Sustainable Development, particularly focusing on SDG 16, which aims for peace, justice, and strong institutions, and SDG 17, which emphasizes partnerships for the goals.
The project achieved significant milestones in several key areas. Firstly, it developed a harmonized set of definitions and methodologies for measuring IFFs. These were agreed upon by key stakeholders, including African countries, civil society, and international organizations. The project produced two major publications: the “Conceptual Framework for the Statistical Measurement of IFFs” and the “Methodological Guidelines to Measure Tax and Commercial IFFs.” These documents provided a clear and consistent set of definitions and robust methods for estimating IFFs.
In terms of capacity building, the project involved eleven African countries in pilot activities to apply the developed methodologies. Technical Working Groups (TWGs) were established in each country, which significantly enhanced cross-department collaboration. Ten out of the eleven countries successfully produced initial estimates of IFFs, with some presenting these estimates at the project’s closing workshop. This demonstrated the project’s effectiveness in transferring technical knowledge and building the necessary skills among national staff.
The project also made strides in raising awareness and engagement among African stakeholders about the importance of measuring IFFs. Dissemination activities included workshops, international meetings, and participation in forums such as the Pan-African Conference on IFFs and Taxation. The project engaged with international bodies like the UN Statistical Commission and the FACTI Panel, promoting the adoption of the methodologies developed.
The impact of the project on the Sustainable Development Goals was notable. For SDG 16, the project directly contributed to Target 16.4, which aims to significantly reduce illicit financial and arms flows. By providing reliable data on IFFs, the project supported evidence-based policy-making to combat organized crime and corruption. For SDG 17, the project fostered partnerships between UNCTAD, UNECA, and various national and international stakeholders. It enhanced domestic resource mobilization by improving the capacity of African countries to track and curb IFFs, aligning with Target 17.1.
The evaluation report also provided several recommendations to ensure the sustainability and further impact of the project’s outcomes. It emphasized the need to ensure the continuation of TWGs and allocate dedicated resources for regular IFF estimation. Follow-up training and capacity development were recommended to maintain and enhance the skills acquired. The report also suggested encouraging the use of IFF estimates in national policy-making and SDG reporting, and supporting countries in communicating their IFF estimates to avoid political misuse and enhance transparency.
Furthermore, the report recommended strengthening partnerships with international organizations like the OECD, FATF, and the World Customs Organization to support the global fight against IFFs. These steps would help ensure that the project’s achievements are sustained and that its impact on the SDGs is maximized.
In summary, the project was successful in building capacity and raising awareness about IFFs in Africa. It developed robust methodologies and enhanced the skills of national staff, leading to the production of initial IFF estimates in several countries. The project also fostered important partnerships and contributed to the global agenda on sustainable development. However, further support is needed to ensure the sustainability of these achievements and to maximize their impact on the SDGs.