Zim leaks US$2bn a year through IFFs

THE African Development Bank (AfDB) has flagged illicit financial flows (IFFs) as a major drain on Zimbabwe’s economy, estimating annual losses of more than US$2 billion from mineral smuggling, trade misinvoicing, and tax evasion.

The figure is higher than earlier estimates by the Zimbabwe Anti-Corruption Commission, which put annual losses to corruption at about US$1,8 billion, pointing to a growing scale of financial leakages from the economy.

The losses, largely driven by gold smuggling and weak oversight in the mining sector, undermine government revenue, worsen fiscal pressures, and limit spending on public services and infrastructure.

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