Over the last 50 years, Africa is estimated to have lost in excess of $1 trillion in illicit financial flows (IFFs) (Kar and Cartwright-Smith 2010; Kar and Leblanc 2013). This sum is roughly equivalent to all of the official development assistance received by Africa during the same timeframe.
IFF encompass a myriad of financial activities that undermine economic stability, encourage corruption, and drain resources from vital public services. The complexities surrounding IFF are not only financial but also deeply intertwined with local political economies, making it imperative for solutions to be tailored to individual contexts.
In recognition of this, in 2025, the Collaborative Africa Budget Reform Initiative (CABRI) and the Swedish Tax Agency (STA) are launching a new 4-year International Capability Building Programme to Fight Illicit Financial Flows. The programme will see the collaboration of teams of different government agencies to tackle locally identified IFF problems by using the Problem Driven Iterative Adaption Approach (PDIA). PDIA is a stepped approach that enables teams to build local coalitions as they identify localised solutions that take into account their political economy and local context.
This iterative process allows teams to identify specific IFF problems pertinent to their contexts, fostering a deeper understanding of the constraints (technical, political, administrative) that they face. The PDIA approach encourages continuous learning and adaptation, ensuring that solutions evolve based on real-time feedback and changing local dynamics.
One of the programme's primary objectives is also to cultivate strong local coalitions – one of the key aspects that has hindered initiatives to tackle IFF in the past. By uniting different government entities - such as tax authorities, law enforcement, and regulatory bodies -participants can leverage diverse expertise and perspectives. This collaborative model is essential for developing comprehensive and consensual solutions that address the root causes of IFFs and enhance overall governance. As these coalitions form, they will not only work on immediate solutions but also focus on strengthening institutional capacities, ensuring that efforts to combat IFFs are sustainable in the long run.
The ICBP programme recognizes that tackling illicit flows requires more than just policy changes; it necessitates a collective commitment to reform. By prioritizing local context and political economy considerations, teams can develop strategies that are not only effective but also politically feasible. This localized focus ensures that solutions are realistic and can garner the necessary support from stakeholders at all levels.
Country-teams from South Africa, Kenya, Zambia and Rwanda will take part in the first cohort of the ICBP programme this year. The country-teams have been going through an intensive online course that provides background research on the challenges of tackling IFFs and an initial training on the PDIA approach. The initial course also supports active reflections on the identification and prioritisation of key IFF problems that countries want to prioritise, based on an evidence-based process and political economy analysis.
In February, the country-teams will participate in a framing workshop to start identifying deep rooted causes of these IFF problems, identifying entry points where they may have political support and broad acceptance for change and actionable steps going forward.
The launch of the ICBP marks a pivotal moment in the global fight against IFFs. Through collaboration, innovation, and a commitment to local solutions, CABRI and STA re poised to make significant strides in enhancing financial integrity and governance in Africa.
We certainly look forward to this ongoing collaboration.
For questions about this programme, please contact Joana Bento, Acting Head of the Public Finance Division at: joana.bento@cabri-sbo.org.