(Ecofin Agency) - The UK wants to cut African countries’ dependency on foreign aid with a new anti-avoidance program. This was announced last Thursday by Penny Mordaunt (photo), International development secretary.

To implement the new program, the UK plans to invest £47 million ($61.2 million). Out of this fund, £13 million ($16.9 million) will be consecrated to regional IMF’s technical assistance centers (AFRITAC) including £2.6 million ($3.3 million) exclusively dedicated to the increase of fiscal revenues. £4.2 million will also be used for the African Tax Administration Forum (ATAF).  

“This new UK support will help countries collect more taxes and leave them less reliant on aid. It will turbo charge their development”, Mrs Penny Mordaunt indicated. She added that it should help African countries support the increase in their infrastructures, health and education expenses as well as create a favorable environment to attract foreign investments.

According to the UNECA, every year, Africa loses $50 billion due to illegal financial outflows, the major part of which are related to tax evasion and tax fraud. In 2017, official development assistance granted to the continent by the OECD zone was $29 billion.  

Moutiou Adjibi Nourou