The Acting Director of Economic Development, Integration and Trade at the African Union (AU), Dr. Patrick Ndzana Olomo, has warned that Africa is losing an estimated $587 billion every year to corruption and illicit financial flows—a figure that surpasses the continent’s annual development financing needs of $472 billion.
Speaking at the 4th Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria, Olomo stressed that the loss represents not just a fiscal setback but a full-scale development crisis. “Every year, we are losing approximately $587 billion. Compared to our development needs of about $472 billion, this shows how corruption alone drains $148 billion, illicit financial flows take $90 billion, and risk misperceptions deprive us of even more, despite Africa being less risky than many other regions,” he said.
Olomo urged African leaders to place economic and financial governance at the centre of policymaking, warning that without decisive action, the continent’s growth potential will remain stifled. He emphasized that Africa has the resources and human capital needed for inclusive growth, provided leaders commit to strategic reforms, and called for bold investment in agriculture, industrialization, and services—sectors he said could propel annual GDP growth to 7–10 percent. According to his projections, such growth could lift Africa’s collective GDP from the current $3.4 trillion to as much as $15 trillion within a decade—a more than threefold increase with the potential to raise living standards and strengthen regional stability.
Olomo also underlined the urgent need for large-scale infrastructure development—including modern roads, ports, energy systems, and digital networks—without which accelerated growth and industrial expansion would remain out of reach. Highlighting Africa’s youthful population, projected to be the youngest globally, he said the demographic advantage could be a key driver of transformation if properly harnessed. He further pointed to the African Continental Free Trade Area (AfCFTA) as a game-changer, already reshaping the size and scope of the continent’s market while creating new opportunities for trade, investment, and job creation.
He concluded by urging governments to reframe governance priorities, stressing that only intentional action and strategic investment can put Africa on a path toward inclusive and sustainable growth, while securing its rightful place in the global economy.
