ITUC-Africa calls for end to illicit financial flows, austerity and kleptocracy

The International Trade Union Confederation-Africa (ITUC-Africa) has called for an overhaul of Africa’s economic system, warning that the continent’s wealth continues to be extracted, stolen and hidden while workers bear the burden of unemployment, low wages and declining public services.

ITUC-Africa General Secretary Joel Akhator Odigie, in a statement, said African governments and international partners must urgently tackle illicit financial flows, corruption, tax avoidance and financial secrecy to ensure the continent’s resources benefit its people.

“Africa can no longer accept an economic order in which the continent’s wealth is extracted, hidden, stolen and mortgaged, while workers and communities are told to endure austerity,” Odigie said.

The labour movement called for greater transparency in public budgets, loans, contracts and procurement, as well as the recovery of stolen assets and their investment in public services.

ITUC-Africa said every dollar lost through illicit financial flows and corruption represents resources that could otherwise be used to fund hospitals, schools, decent jobs, pensions and social protection.

It also demanded fair taxation of wealth, corporate profits and multinational companies, arguing that stronger domestic revenue mobilisation would reduce pressure on governments to impose austerity measures.

“Public office must never serve private profit. Those who steal public resources, enable secret transactions or protect stolen assets must be exposed and held accountable,” Odigie said.

The organisation said Africa’s development should instead be anchored on fair taxation, accountable governance, productive investment, decent work, quality public services and universal social protection.

ITUC-Africa also raised concerns over the implementation of Mission 300, the initiative aimed at expanding electricity access across Africa. While supporting universal access to affordable and reliable electricity, the labour body cautioned against financing models that could saddle countries with unsustainable debt.

It warned that Mission 300 must not become “Debt 300”, saying energy investments should create decent jobs, stimulate industrial development and deliver affordable power without opaque loans or exploitative contracts.

The organisation urged governments and development partners to ensure that energy projects are transparent and deliver tangible public benefits.

“Africa needs universal access to affordable, reliable and sustainable electricity, but energy investment must not create opaque debt, exploitative contracts or burdens for future generations,” the statement said.

ITUC-Africa said the fight against illicit financial flows was directly linked to workers’ rights and democratic governance.

It called on governments across the continent, including Kenya and Nigeria, to strengthen accountability and ensure public resources are directed towards development and improved livelihoods.