AFDB, ESAAMLG UNVEIL $5.2M PROJECT TO SHIELD AFRICA FROM FINANCIAL CRIMES

AfDB and ESAAMLG Launch $5.2M Project to strengthen anti-financial crime systems and curb illicit flows draining billions from Africa.

Afdb Esaamlg Africa Money laundary Financial crime Project.

AfDB and the ESAAMLG launch $5.2 million initiative to combat money laundering and terrorist financing across Africa

The African Development Bank (AfDB) and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) have launched a $5.2 million initiative to combat money laundering and terrorist financing across five vulnerable African countries.

Dubbed the Regional Capacity Development Project on Anti-Money Laundering and Countering the Financing of Terrorism (ESCAD-AML), the three-year project will benefit Burundi, Eritrea, Mozambique, South Sudan, and Madagascar, nations facing heightened risks of illicit financial flows due to institutional fragility and limited enforcement capacity.

At the official launch in Dar es Salaam, AfDB’s Director of Economic Governance and Reforms, Mr. Abdoulaye Coulibaly, emphasized the high stakes of the project, calling it “a turning point in Africa’s fight against financial crime” and a significant step toward shielding the continent’s financial systems from abuse.

“Illicit financial flows are draining Africa of nearly $587 billion every year, more than the total development financing mobilized in 2023. That’s a quarter of our GDP leaking through illegal tax evasion, resource theft, and opaque transactions,” Coulibaly warned. “This project is about building systems that can protect our future.”

Funded entirely by the AfDB, ESCAD-AML will support national risk assessments, help develop tailored anti-money laundering and counter-terrorism financing (AML/CFT) strategies, conduct mutual evaluations, and strengthen institutional frameworks. The initiative also includes capacity-building programs to prepare beneficiary countries for upcoming global compliance reviews.

ESAAMLG Executive Secretary, Ms. Fikile Zitta, described the program as a “milestone moment” in advancing financial integrity in the region. “We must seize this opportunity to build robust national capacities, foster interagency cooperation, and support political will within our states.”

Countries like South Sudan and Mozambique, which are currently on the Financial Action Task Force (FATF) blacklist, are expected to see significant benefits from the initiative, as are Eritrea, Burundi, and Madagascar.

Bank of Tanzania Deputy Governor, Ms. Sauda Msemo, said the program comes at a pivotal time, especially for countries under scrutiny. She highlighted Tanzania’s journey in addressing financial crime risks after being grey-listed by FATF in 2022. Reforms undertaken by the country, ranging from legislative updates to institutional restructuring, led to its removal from the grey list just last month.

“This initiative will support these nations and others, including Burundi, Eritrea, and Madagascar, in aligning with international standards,” Msemo noted.

Beyond institutional development, the ESCAD-AML project also seeks to tackle the root causes of financial vulnerability in Africa by improving governance, increasing transparency, and mobilizing domestic resources for sustainable development.

As Africa continues to lose billions to illegal mining, fishing, trade, and corporate tax evasion, the AfDB says its commitment to fighting financial crime will remain unwavering, and this regional initiative is only the beginning.

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AFDB, ESAAMLG UNVEIL $5.2M PROJECT TO SHIELD AFRICA FROM FINANCIAL CRIMES

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