Group 1 - The African Development Bank (AfDB) emphasizes that enhancing transparency in Africa's natural resource sector is crucial for addressing issues related to illicit financial flows, illegal natural resource trade, and resource-backed loans [2] - The AfDB has concluded activities in Chad under the "Unlocking Africa's Wealth" GONAT program, which aims to curb illicit financial flows and promote sustainable growth and development [2] - Solomane Koné, Director of the AfDB's African Natural Resource Management and Investment Center, stated that improving governance and transparency is essential for reforming illicit financial flows, illegal natural resource trade, and the design, monitoring, and implementation of resource-backed loans [2] Group 2 - According to the AfDB's African Economic Outlook, illicit financial flows are a major obstacle to Africa's development, with nearly $90 billion lost annually [3] - Eric Ogunleye, Director of the AfDB's African Development Institute, highlighted that illicit financial flows are one of the primary barriers to Africa's development [3]

Core Insights - The African Development Bank (AfDB) reports that illegal financial flows (IFF) are a major obstacle to Cameroon’s development, with an estimated loss of 56.35 trillion Central African Francs (approximately $939.16 billion) from 1970 to 2022, averaging 1.08 trillion Central African Francs (about $18 million) annually [1][2] - The losses from IFF are equivalent to 80.5% of the projected funding gap for key projects under Cameroon’s 2030 National Development Strategy, which is estimated at 70 trillion Central African Francs (approximately $1.17 billion) [2] - In 2022, the estimated loss recorded by customs was 114.4 billion Central African Francs (about $1.9 million), indicating that illegal financial flows remain a persistent issue [2] Summary by Sections Illegal Financial Flows Impact - Illegal financial flows hinder Cameroon’s ability to raise funds for development projects, affecting critical sectors such as infrastructure, healthcare, and education [2] - The ongoing issue of IFF is attributed to tax evasion, smuggling, and other illegal activities that circumvent border controls [2] Regulatory Challenges - Cameroon was placed on the "grey list" by the Financial Action Task Force (FATF) in June 2023 due to insufficient measures against illegal financial flows, indicating ongoing struggles to implement necessary reforms [2] Recommendations for Action - AfDB emphasizes the importance of a multi-sectoral collaborative approach to effectively combat illegal financial flows, suggesting key actions such as enhancing tax and customs transparency, fostering international cooperation to combat tax evasion, and improving traceability of cross-border financial flows [3]