Namibia loses N$67.8bn to illicit financial flows
The finance minister warned that unlawful activities like tax evasion and money laundering deprive the nation of funds for public services.
Namibia potentially lost N$67.8 billion to illicit financial flows over three years, averaging N$22.6 billion annually, according to a Financial Intelligence Centre assessment. Minister of Finance Ericah Shafudah stated that these suspected flows raise serious concerns about unlawful financial activities, tax evasion, and money laundering. These practices undermine domestic revenue and economic development, Shafudah warned at the Institute of Chartered Accountants of Namibia National Accounting Summit.
Shafudah highlighted that the scale of these illicit financial activities could deprive Namibia of resources needed for essential public services and infrastructure. She noted that the potential diversion of financial resources is particularly concerning given the country’s substantial development needs. The minister urged accountants and auditors to strengthen their role in detecting suspicious transactions and reporting financial misconduct.
The government is committed to improving domestic revenue collection and strengthening financial oversight, Shafudah said. Legislative reforms are underway, including the proposed Public Finance Management Bill, to enhance fiscal discipline and transparency. The Accountants and Auditors Regulatory Authority Bill aims to modernise the regulation of the accounting and auditing profession.
Why it mattersNamibians are deprived of resources for education, healthcare, infrastructure, and employment creation due to illicit financial flows.