AFRICA'S UNSEEN KILLER - ILLICIT FINANCIAL OUTFLOWS Pt 2

Isaac Clottey

jamrock4ever@gmail.com

Currency Depreciation: Large-scale capital flight can put pressure on the Ghanaian cedi.

Erosion of Governance and Institutional Integrity: 

Weakened State Institutions: IFFs often thrive where governance is weak and institutions are compromised. The proceeds of IFFs can be used to further corrupt officials and undermine regulatory bodies.

Reduced Rule of Law and Public Trust: The perception that elites and corporations can illicitly move wealth out of the country with impunity erodes public trust in government and the legal system.

Fueling Corruption: IFFs and corruption are mutually reinforcing; IFFs provide a vehicle for corrupt individuals to hide their gains, while corruption facilitates the illicit flows.

Social Disintegration and Inequality:

Exacerbated Poverty and Inequality: By depriving the state of resources for social programs and pro-poor investments, IFFs worsen poverty and widen the gap between the rich and the poor.

Undermining Social Contract: When citizens see vast wealth leaving the country illicitly while public services crumble, it can lead to social unrest and a breakdown of the social contract.

Environmental Degradation and Security Threats (linked to Galamsey):

Environmental Devastation: IFFs linked to illegal gold mining (galamsey) are directly associated with widespread environmental destruction, including deforestation, water pollution with toxic chemicals like mercury, and land degradation.

Security Challenges: Illegal mining activities, sometimes fueled by illicit funds, can lead to local conflicts, human rights abuses, and instability in affected communities.

Efforts to Combat IFFs in Ghana: 

Taxes can transform Africa's education

Ghana has taken some steps to address IFFs, including:

Legislative Measures: Enacting laws such as the Companies Act, 2019 (Act 992) and the Anti-Money Laundering Act, 2020 (Act 1044) to improve transparency, particularly around beneficial ownership of companies.

Institutional Strengthening: Efforts to enhance the capacity of institutions like the Financial Intelligence Centre (FIC), the Ghana Revenue Authority (GRA), and other law enforcement agencies.

International Cooperation: Participating in global and regional initiatives to combat IFFs, as cross-border cooperation is crucial for tracking and recovering illicit assets.

Civil Society Advocacy: Organizations and media play a role in raising awareness, conducting research, and advocating for stronger measures against IFFs.

Policy Tools: Ghanaian government agencies are utilizing tools like the Anti-IFFs Policy Tracker in collaboration with international bodies to identify risks and recommend policy reforms.

Parliamentary Oversight: The establishment of the African Parliamentary Network on Illicit Financial Flows and Taxation (APNIFFT) Ghana Caucus aims to provide legislative impetus to curb IFFs.

Industrialisation through taxation - key to Africa's growth

Despite these efforts, challenges remain, including weak enforcement, capacity constraints, corruption, and the complex and often clandestine nature of IFFs. Successfully "healing" Ghana from the scourge of illicit financial outflows requires sustained political will, robust institutional reforms, effective enforcement, increased transparency, and strong international collaboration.

 AFRICA’S UNSEEN KILLER – ILLICIT FINANCIAL OUTFLOWS Part 1

Isaac Clottey

Jamrock4ever@gmail.com

Illicit Financial Outflows (IFFs) are a severe impediment to Ghana's development, draining billions of dollars annually and undermining economic stability, governance, and social progress. These outflows, essentially money illegally earned, transferred, or utilized, typically vanish across borders, robbing the nation of critical resources.

How Illicit Financial Outflows Manifest in Ghana:  

Illicit financial outflow Forum in Accra, Ghana

IFFs from Ghana occur through various channels, with some of the most significant being:

The Extractive Sector: Ghana's rich natural resources, particularly gold, are a major source of IFFs. This happens through:

Illegal Mining (Galamsey): Unregulated and illegal artisanal and small-scale mining operations often involve smuggling gold out of the country, with proceeds frequently untaxed and unrecorded.

Under-declaration and Mis-invoicing by Mining Companies: Both large-scale multinational corporations and smaller entities can engage in practices like undervaluing exports or overstating import costs to shift profits abroad and evade taxes.

Corruption: Bribery of officials can facilitate illegal mining operations and the illicit export of minerals.

Trade Mis-invoicing: This is a widespread method where importers and exporters deliberately falsify the value, quantity, or quality of goods or services on customs documents. This can be done to evade customs duties and VAT, launder money, or illicitly transfer capital abroad. It includes practices like import over-invoicing, import under-invoicing, export under-invoicing, and export over-invoicing.

Corruption and Bribery: Public sector corruption, including embezzlement of state funds and bribery, directly contributes to IFFs as illicitly acquired wealth is often moved and hidden overseas.

African infrastructure needs urgent modernisation

Tax Evasion and Avoidance: Individuals and corporations may use complex schemes, including offshore accounts and shell companies, to hide income and assets, thereby evading their tax obligations in Ghana.

Money Laundering: Proceeds from criminal activities such as drug trafficking, human trafficking, and fraud are often laundered through various channels and moved across borders.

The Devastating Impact on Ghana: 

The term "killing Ghana" reflects the profound and multifaceted damage inflicted by IFFs:

Economic Strangulation:

Loss of Critical Revenue: Estimates suggest Ghana loses vast sums annually. For instance, Tax Justice Network Africa reported an annual loss of approximately USD 1.4 billion primarily through tax evasion and exemptions. Between 2002 and 2011, trade mis-invoicing alone reportedly cost Ghana around USD 14.39 billion. These lost funds could have been invested in vital development projects.

Taxes can boost Ghana's healthcare system

Reduced Public Spending: The massive leakage of resources means less money is available for essential public services like healthcare, education, and infrastructure (roads, energy, water), hindering human capital development and quality of life.

Hindered Economic Growth and Development: IFFs drain foreign exchange reserves, reduce domestic savings and investment, and stifle economic diversification and structural transformation.

Increased Debt Burden: To compensate for lost revenue and fund development, Ghana may resort to increased borrowing, exacerbating its debt situation.

 FEATURES & OPINION

 

AFRICA SMILES AS RUSSIA & UKRAINE HEAD TO ISTANBUL FOR PEACE TALKS

By Isaac Clottey

Jamrock4ever@gmail.com

As of mid-May 2025, a comprehensive and lasting ceasefire between Russia and Ukraine has not been achieved. While there are ongoing diplomatic efforts, proposals for talks, and occasional short-term, limited truces (often marred by accusations of violations), the conflict continues. Russia has often linked any new negotiations to the early 2022 Istanbul protocols, which Ukraine perceives as demanding capitulation.  

However, were a sustained ceasefire to be reached, it would carry significant and multifaceted implications for African countries. These can be broadly categorised as follows:

1. Food Security:

Potential Positives: Africa is heavily reliant on Russia and Ukraine for essential food imports, particularly wheat and fertilisers. A ceasefire could lead to:  

Stabilised Grain and Fertiliser Supplies: Reduced conflict in the Black Sea region would likely improve the safety and reliability of shipping routes, increasing the flow of these crucial commodities.

Lower Food Prices: Increased supply and reduced logistical disruptions could help lower the currently elevated global food prices, easing the burden on African households and national budgets. This would be particularly beneficial for countries facing food insecurity.

Improved Agricultural Productivity: More accessible and potentially cheaper fertilisers could boost local agricultural yields in African nations.

Potential Complexities/Negatives:

Russia's Increased Market Share: Some analyses indicate that Russia has been increasing its grain exports to Africa during the conflict. A ceasefire might solidify or even expand Russia's influence in the African agricultural market.

Status of Ukrainian Farmland: The terms of any ceasefire, particularly regarding control over Ukraine's agricultural lands currently occupied by Russia, would significantly impact future grain supplies.

2. Energy Markets:

Potential Positives:

Lower Global Energy Prices: The conflict has contributed to global energy price volatility and increases. A ceasefire, especially if it leads to a fuller resumption of Russian oil and gas supplies to the global market (particularly Europe), could lead to a decrease in international energy prices. This would benefit African net energy-importing countries by reducing their import bills and potentially lowering domestic fuel and electricity costs.

Potential Complexities/Negatives:

Impact on African Energy Exporters: For African oil and gas producing nations that may have benefited from higher global prices and increased demand from Europe seeking alternatives to Russian energy, a ceasefire and subsequent market stabilisation could reduce their export revenues.

3. Economic Stability and Development:

Potential Positives:

Reduced Inflationary Pressures: Lower food and energy prices, along with more stable global supply chains, could help curb inflation in African countries, which has been exacerbated by the conflict.

Improved Investor Confidence and FDI: A reduction in global geopolitical uncertainty could boost investor confidence, potentially leading to increased foreign direct investment in Africa.

Easing of Debt Burdens: Greater economic stability and potentially lower global interest rates (if inflation subsides) could provide some relief to African countries facing debt distress.

"Peace Dividend": Resources and attention currently focused on the conflict by global powers might be redirected, potentially benefiting development aid and investment in Africa.

Potential Complexities/Negatives:

Persistent Underlying Issues: While a ceasefire could alleviate some external shocks, it would not resolve pre-existing economic challenges within African countries, such as structural issues, governance problems, and climate change impacts.

4. Geopolitical Landscape:

Potential Positives:

Reduced Pressure for Alignment: African nations have largely sought to maintain neutrality. A ceasefire could reduce the diplomatic pressure to take sides in the conflict.

Strengthened Multilateralism: A peaceful resolution could reinforce faith in international law and multilateral institutions, which many African countries champion.

Potential Complexities/Negatives:

Shifting Global Power Dynamics: The post-ceasefire geopolitical landscape could see altered relationships between major powers (US, EU, China, Russia). How Africa navigates these shifts would be crucial.

Russia's Continued Influence: Russia has been actively working to increase its influence in Africa. A ceasefire, depending on its terms and Russia's global standing thereafter, might allow Moscow to further consolidate its political, economic, and security partnerships on the continent.  

5. Security and Humanitarian Aid:

Potential Positives:

Increased Global Focus on African Conflicts: A reduction in the intensity of the Ukraine conflict might free up international attention and resources for conflict resolution and humanitarian efforts in various parts of Africa.

Potential Complexities/Negatives:

Continuation of Mercenary Activities: The role and presence of private military contractors, including those linked to Russia, in parts of Africa might persist or evolve depending on Russia's post-ceasefire foreign policy objectives.

In summary, a Russia-Ukraine ceasefire would likely bring welcome relief to Africa in terms of food and energy price stability and overall economic predictability. However, the long-term implications would depend heavily on the specific terms of such a ceasefire, the resulting global geopolitical realignments, and how African nations strategically navigate the new environment.

CULTURE NEWS

GHANA-NAMIBIA RELATIONS

GA KING & NAMIBIAN COUNTERPARTS TO COLLABORATE TO STRENGTHEN TRADITIONAL GOVERNANCE

By Isaac Clottey, (jamrock4ever@gmail.com)

King Tackie Teiko Tsuru II, the Ga Mantse, has underscored the importance of cultural exchange and traditional governance in strengthening inter-African cooperation, particularly between Ghana and Namibia.

King Tackie Teiko addressing the Namibian Chiefs

He made these remarks on Monday during an engagement with a high-powered Namibian delegation of paramount chiefs and senior traditional leaders at the Ga Mantse Palace in Accra.

The Namibian delegation was led by His Royal Highness King Fillemon Shuumbwa, King of Ondonga and Chairman of the Traditional Authority Trust in Namibia.

He was accompanied by His Majesty, Chief Immanuel Gaseb, Chairperson of the 54 Traditional Authorities Council in Namibia; His Majesty Chief Sam Kambazembi, Chairperson of the Chiefs Business Company; Retired Brigadier General David Mbandeka, Senior Traditional Councillor; Ms. Louise Penna Shixwameni, Chairperson of the Chief Investment Committee; and other senior government officials in charge of state enterprises.

The Namibian delegation of Chiefs

King Tackie Teiko Tsuru II, in his welcome address, expressed his joy at the opportunity for traditional authorities in both countries to cooperate and learn from each other on all levels.

He highlighted Ghana’s efforts in harmonising traditional authority with modern governance, noting that the judicial committees of the traditional courts are solely empowered to handle cases affecting traditional leaders, including chiefs and paramount rulers, and emphasised the uniqueness of this approach as a model worthy of study and adaptation by other nations.

Some Ga royalty at the Ga Mantse Palace

The Ga Mantse also commended the idea of mutual exchange programs between the two nations, where traditional leaders and council members could visit each other’s countries to learn best practices in traditional governance and cooperation with state authorities.

Speaking through his translator, His Royal Highness King Fillemon Shuumbwa, King of Ondonga and Chairman of the Traditional Authority Trust in Namibia, expressed his gratitude to King Tackie Teiko Tsuru II for the warm reception. 

King Fillemon Shuumbwa of Ondonga at the Ga Mantse Palace

He pledged to strengthen the bond between the Ga State and Namibia.

He expressed optimism that this connection would create opportunities for citizens of both nations to visit one another, experience cultural diversity, and deepen their understanding of each other's traditions.

The visit by the Namibian delegation marks a significant milestone in fostering African unity, promoting traditional diplomacy, and enhancing cultural and institutional cooperation between Ghana and Namibia.

THE LEGACY OF TOURISM IN GHANA UNDER NANA AKUFO-ADDO (Conclusion)

Isaac ‘Parlos’ Clottey

jamrock4ever@gmail.com

Infrastructure Development and Product Enhancement:

The Akufo-Addo administration undertook a product improvement plan, investing in the refurbishment and upgrading of several key tourist sites. Notable projects included:

The iconic Kwame Nkrumah Memorial Park was significantly renovated and transformed into the Kwame Nkrumah Museum.  

Upgrades to the Aburi Botanical Gardens, Yaa Asantewaa Memorial Museum, Kente Museum in Bonwire, Elmina and Cape Coast Castles, Mole National Park, and Kakum National Park.

Development of new attractions such as the Nationalism Park and the upcoming Heroes Park.  

Construction and upgrading of other sites like the Tano-Boase Sacred Grove and Heritage Site, and the Salaga Slave Market.

Efforts were made towards skills development within the tourism sector, supported by initiatives like the Ghana CARES Obaatanpa Programme.  

Financial support for Small and Medium Enterprises (SMEs) in the hospitality and beverage sector was also pursued, with negotiations for World Bank funding.

Policy and Strategic Focus:

The government identified tourism as a key policy for economic diversification.

A four-fold strategic approach was outlined for tourism development: Preservation (safeguarding natural and cultural heritage), Promotion (strategic marketing and enhanced digital presence), Policy Leadership (creating a conducive investment climate through initiatives like e-Visas, visa-on-arrival, and the Homeland Return Act), and Partnership (collaborative approach involving all stakeholders).  

Presidential Summits on Tourism were held to engage stakeholders and strategise on rethinking tourism for economic growth and job creation.

Decentralising national celebrations, such as Independence Day, to various regions was also a strategy to promote regional tourism and showcase diverse cultures.

Challenges:

The most significant challenge was the COVID-19 pandemic, which severely disrupted international travel and tourism in 2020 and 2021.

While significant strides were made, ongoing discussions continued regarding the need for sustained and potentially increased investment in tourism infrastructure and marketing to fully realise the sector's potential compared to other economic sectors.

Overall, the Nana Addo Dankwa Akufo-Addo administration placed a strong emphasis on tourism, leveraging Ghana's unique historical and cultural heritage to attract global visitors, particularly those of African descent. Landmark campaigns like the "Year of Return" and "Beyond the Return" significantly elevated Ghana's profile as a leading tourism destination in Africa.

THE LEGACY OF TOURISM IN GHANA UNDER NANA AKUFO-ADDO. (Part 1)

Isaac ‘Parlos’ Clottey

jamrock4ever@gmail.com

 

Under the presidency of Nana Addo Dankwa Akufo-Addo (January 2017 – January 2025), Ghana's tourism sector witnessed significant attention and strategic initiatives aimed at positioning the country as a major tourist destination, particularly for the global African diaspora. The government emphasised tourism as a key pillar for economic growth, job creation, and national development.  

Key highlights of tourism during the Akufo-Addo administration include:

Flagship Initiatives and Campaigns:

The Year of Return (2019): This landmark initiative marked 400 years since the first enslaved Africans arrived in Jamestown, Virginia. It invited people of African descent to visit Ghana, reconnect with their roots, and explore their ancestral heritage. The campaign was widely successful, reportedly attracting around 1.5 million visitors and generating an estimated USD 1.9 billion to USD 3.3 billion in revenue. It significantly boosted international arrivals and global media attention for Ghana.  

Beyond the Return (2020-2030): Following the success of the "Year of Return," this 10-year initiative was launched to build on the momentum. Its objective is to promote tourism and homecoming while fostering economic relations, investments, and cultural engagement with the African diaspora. It operates on seven pillars: Experience Ghana, Invest in Ghana, Diaspora Pathways to Ghana, Celebrate Ghana, Brand Ghana, Give Back to Ghana, and Promote Pan-African Heritage and Innovation.  

Destination Ghana (Launched 2022): This project aims to further promote Ghana as an attractive tourism destination globally, building on the successes of previous campaigns and highlighting Ghana's diverse attractions, including nature-based adventure and leisure tourism.  

December in GH: This campaign has successfully branded December as a prime tourism period, attracting thousands of tourists, particularly from the diaspora, for a month-long celebration of culture, music festivals, parties, and heritage events.  

Experience Ghana, Share Ghana: This domestic tourism campaign was launched to encourage Ghanaians to explore their own country and its attractions, thereby boosting local tourism.  

Economic Impact and Growth:

The "Year of Return" in 2019 saw a significant surge in international arrivals.  

Despite the global downturn caused by the COVID-19 pandemic in 2020 (which saw arrivals drop to around 355,108), the sector showed resilience and a path to recovery. International arrivals reportedly reached 914,892 in 2022.

Domestic tourism also experienced growth, with deliberate marketing initiatives and upgrades to tourist infrastructure.  

The government set ambitious targets, aiming for 2 million international arrivals and USD 4 billion in tourism revenue by 2025.  

President Akufo-Addo, in his final State of the Nation Address in January 2025, highlighted what he described as transformative achievements and unparalleled gains in the tourism and hospitality sector under his leadership.

to be continued

SUHUM - FIGHTING SUBSTANCE ABUSE

MP LEADS AWARENESS CAMPAIGN AGAINST OPIOIDS & SUBSTANCE ABUSE 

By Isaac Clottey

jamrock4ever@gmail.com

The Member of Parliament for Suhum Constituency in the Eastern Region, Frank Asiedu Bekoe, has spearheaded the commencement of a public education, awareness and sensitisation campaign against substance abuse, particularly opioids, among the youth in the area.

The campaign, including a float through the principal streets and market centres of Suhum, aimed to educate and sensitise the community, particularly the youth, about the dangers of substance abuse.

A pivotal component of the awareness campaign was the face-to-face interaction between community members and mental health experts. 

The mental health specialists 

counselled the youth, sharing vital information on the far-reaching consequences of substance abuse, encompassing physical, psychological, and social repercussions.

Additionally, they offered advice on effective prevention methods and accessible rehabilitation services, empowering individuals with the knowledge and resources necessary to make informed choices.

Speaking to a cross-section of the media, Hon. Frank Asiedu Bekoe, sounded the alarm bells at the rate at which the youth are becoming engrossed with these hazardous substances.

The MP characterised the widespread substance abuse among youth as a "national security concern," emphasising the urgent need for collective action.

Suhum MP, Frank Asiedu Bekoe

He said upon parliament's resumption from recess, he intends to submit a proposal urging the Ghana Education Service (GES) to integrate substance abuse education into the national curriculum.

The Suhum MP said addressing the national security concern posed by substance abuse requires a multifaceted approach adding that while securing the country's borders and preventing the substances from reaching the wrong hands is crucial, it is equally essential to educate children about the dangers of substance abuse, empowering them to make informed decisions and avoid its pitfalls.

The Suhum Municipal Health Director, Mr. Frederick Kwame Ofosu, urged the youth to steer clear of drug abuse, emphasizing their vital role as the future custodians and leaders of the nation.

  

Suhum Municipal Health Director, Fred Ofosu

New Commonwealth Secretary-General Shirley Ayorkor Botchwey Focuses on Unity, Empowerment, and Climate Action in Early Days

Accra – 14 May 2025

Isaac Clottey   

 jamrock4ever@gmail.com

The Honourable Shirley Ayorkor Botchwey, who assumed office as the seventh Commonwealth Secretary-General on April 1, 2025, has hit the ground running, emphasizing a commitment to advancing Commonwealth values amidst global challenges. The former Ghanaian Minister for Foreign Affairs and Regional Integration is the first African woman and the second African to lead the 56-member organisation.  

In her initial period, Secretary-General Botchwey has outlined a clear vision centred on leveraging the Commonwealth's unique strengths. She has pledged to focus on several key strategic priorities: empowering women and young people by equipping them with necessary skills and opportunities; revitalizing trade, investment, and connectivity across the Commonwealth to spur inclusive growth and industrial development; and mobilizing stronger action on climate change, including advocating for international financial system reforms to support vulnerable member states. Furthermore, she has committed to accelerating the Commonwealth's modernisation to better serve the needs of its diverse population.  

Since taking the helm, Secretary-General Botchwey has undertaken several notable engagements. In her inaugural address from the Commonwealth Secretariat in London, she highlighted the importance of Commonwealth unity and outlined her strategic focus on building a "Commonwealth built on all talents." She also delivered remarks at the Pacific Maritime Ministers' Reception in early April.  

Responding to global events, she stated the terror attack in Pahalgam, Jammu and Kashmir, on April 22, 2025. Her agenda has also included addressing critical global issues, as evidenced by her keynote address at the Innovation Net Zero World Congress 2025. Additionally, Secretary-General Botchwey marked the 80th anniversary of VE Day, paying tribute to the significant contributions and sacrifices of Commonwealth nations during the Second World War, and spoke on the Commonwealth's 76th anniversary, underscoring its role as a beacon of stability.  

With over two decades of experience in diplomacy, international relations, and public service, Secretary-General Botchwey's leadership is anticipated to guide the Commonwealth through a period of shifting global dynamics, with a strong emphasis on shared values and collective action.