“Continent Loses Up to U.S.$400 Billion Annually in Capital Flight
The African continent which many international investors describe as too risky to invest in, loses between US$200 billion and US$400 billion annually in capital flight by firms which make super profits through evading or cheating the taxman.
South African Finance Minister Pravin Gordhan said in Dar es Salaam today during a plenary at World Economic Forum on Africa that the continent remains the most competitive in terms of returns on investment, but cautioned on capital flows.
Mr Gordhan dismissed some international investors who describe Africa as a risky place to do business as people who were out of touch with the reality. He also expressed concern over businesses that made super profit, but refused to execute statutory obligation of paying taxes to governments.
‘Businesses have the responsibility to pay taxes to pay fair taxes,’ noted Mr Gordhan, who (…).”