STOP THE BLEEDING!

By Daily News Reporter

In a unified effort to address the critical issue of resource depletion in African nations, Zambia has joined Tanzania, Uganda, Cameroon, and Malawi in launching the “Stop the Bleeding” campaign. This initiative, championed by the African Forum and Network on Debt and Development (AFRODAD), aims to combat Illicit Financial Flows (IFFs)—resources lost due to debt repayments and financial leakage. IFFs drain essential resources needed for human rights and sustainable development, hindering economic growth and investment in crucial sectors like health and education.

According to the United Nations Conference on Trade and Development (UNCTAD), countries with high levels of IFFs allocate significantly less to essential sectors compared to those with lower IFFs. For Zambia, the United Nations Economic Commission for Africa reports a 10% annual GDP loss due to corporate tax evasion, with copper trade mis-invoicing accounting for 65% of such incidents in Africa. 

These leakages impact the cost of servicing debt, which now averages around 10.6% of Africa’s GDP, compared to 6% for health spending. By advocating for transparency, accountability, and gender-responsive policies, the campaign seeks to halt the hemorrhage of national resources and promote sustainable development in Zambia.