financial flows out of Africa estimates that such
movements of funds amount to some $50 billion
annually.332
is imperfectly understood. This makes public involvement
in resolving it difficult. It is also notable that it is not only
companies that are held responsible for this, but also
national governments and politicians who are viewed as
facilitating or even encouraging illicit financial flows.
Survey results
Several responses claimed that foreign investors were
given preferences over local firms. A respondent from
Malawi commented, ‗They favour foreign investors more
by offering them tax breaks.‘ A respondent from Lesotho
made similar observations. At the very least, this
demonstrates that the question of undue advantage
being accorded to foreign businesses is widely
recognised, albeit not always in great detail.
What – or what more – can the APRM do
about lack of domestic resource
mobilisation
The APRM‘s utility as a research tool could be put to
excellent use in this respect.
1. The body of knowledge on the state of
resource contracts and resource governance is
incomplete, and the APRM could play a
valuable role in collating country level
information. This would include the provisions
of contracts, how they are operating in reality,
and
evaluating
whether
they
are
developmentally appropriate in the context of
particular countries. This information would be
included in the CRRs, and might also be made
available to the general public in a spirit of
transparency.
2. The APRM would also perform a great service
by giving citizens an opportunity to engage
with the issue. The survey conducted for this
study showed significant information gap on
this issue. The APRM could do this through the
entire chain of APRM-related activities, from
the CSAR to the deployment of the country
review missions to the resulting country review
reports that must be disseminated back in the
countries. In respect of the latter, a good
national-level media strategy would be an
asset.
3. Given that managing resources is a challenge
shared across much of the continent, this is an
area where information sharing could be of
inestimable benefit. Understanding best
practices and mutual alignment of investment
codes and incentives (in the context of regional
integration) should receive attention. This could
receive high-level guidance and endorsement
by the APR Forum, while ongoing cooperations could be managed by the
Committee of Focal Points and information
dissemination by the proposed Knowledge
Hub.
The survey also asked respondents a set of questions
about resource contracts. These included whether they
were publicly available, whether they had stabilisation
clauses and whether resource companies had used or
threatened to take their host governments for arbitration
to enforce the terms of stabilisation clauses.
Interestingly, for the most part, the respondents – a wellinformed group, active in the governance field – were
unable to offer clear answers. On the issue of public
availability of contracts, a few (such as a respondent
from Sierra Leone) said confidently that contracts were
available. More claimed that contracts were not publicly
available. For example, a respondent from Togo said:
‗Those contracts are not publicly available. There are no
policy reasons behind their non-availability. The
Secretariat of the Extractive Industries Transparency
Initiative's Office in Togo recently (in March 2016)
requested the Government to make those agreements
available for people but there has been no official
response from the government for the time being.‘ A
respondent from Tanzania remarked: ‗Contracts are top
government secret. Even the parliamentarians do not
know the content of the contracts.‘ And a respondent
from Uganda noted: ‗None of the contracts are public
allegedly for security reasons.‘ (Leaked versions of
contracts have, however, found their way into the public
domain.)
Responses to questions about the involvement of
resource firms in illicit financial flows produced a more
definite set of answers, albeit with a large number of
respondents claiming to lack knowledge of the issue.
While few were able to provide any substantive details,
the belief or assumption that firms were illicitly depriving
the host society of resources was widespread. Several
linked this to the complicity of national political elites.
The respondents‘ answers add an interesting dimension
to this bottleneck. While the broad issue is recognised, it
332
Bottleneck 13: Structural
inequalities in access to
opportunities
all (Geneva: Africa Progress Panel, 2013)
p. 65.
High Level Panel on Illicit Financial
Flows from Africa, Illicit Financial Flow,
Report of the High Level Panel on Illicit
Financial Flows from Africa (UNECA
2015) p. 13.
61