Losses Of $200-400 Billion A Year In Capital Flight
South African Finance Minister Pravin Gordhan said that the continent remains the most competitive in terms of returns in investment, but cautioned on capital flows. Mr. Gordhan dismissed some international investors who describe Africa as a risky place to do business as people who were out of touch with the reality. He also expressed concern over businesses that made super profit, but refused to execute statutory obligation of paying taxes to governments. In this manner, the African people hardly benefit from the wealth produced in their countries. “Businesses have the responsibility to pay taxes, to pay fair taxes,” noted Gordhan. Some representatives of multinationals operating in Africa have also criticized local governments for the lack of clear tax rules, which they say discourages many traders from investing in the continent. African ministers have, however, indicated that the corporations themselves are often opposed to fiscal rules, especially in mining and in the mobile telephone business, two areas showing the highest profits in the last decade.
