Sierra Leone and AfDB Launch Initiative to Curb $90 Billion in Annual Illicit Financial Flows

A high-level, four-day seminar concluded last week with actionable recommendations to tackle the estimated $90 billion Africa loses every year to illicit financial flows. The African Development Bank Group (AfDB) and the Sierra Leone Government are intensifying efforts to improve governance of the continent’s natural resources.

Over 70 stakeholders from government, civil society, the private sector, and international organisations convened at The Place Resort in Tokeh under the theme, “Harnessing Africa’s Wealth: Curbing Illicit Financial Flows for Resilient Growth and Development.” Illicit financial flows remain one of Africa’s most urgent economic challenges.

The seminar resulted in clear policy proposals, including the creation of national communities of practice, the implementation of institutional reforms, and increased transparency in resource-backed lending (RBL). Attendees emphasised that RBLs should be considered a “last resort” option, applied only with full transparency and for investments that directly enhance repayment capacity.

“This initiative can help us improve revenue from natural resources by blocking leakages through illegal natural resource trade and improved management of resource-backed lending,” said Sierra Leone’s Finance Minister, Sheku Ahmed Fantamadi Bangura.

Workshop discussions focused on identifying illicit financial flows, managing resource-backed lending, and establishing transparent governance frameworks. Participants also reviewed the Sierra Leone Country Diagnostic Report, which detailed illegal natural resource trade and gaps in institutional capacity.

International expert Bernd Schlenter, from Rand Sandton Consulting Group, provided technical analysis on patterns of illicit financial flows and recommended policy measures during the intensive sessions.

Halima Hashi, African Development Bank Country Manager for Sierra Leone, highlighted how the project aligns with the Bank’s Ten-Year Strategy 2024–2033 and its Natural Resources Management and Investment Action Plan 2025–2029.

Broader Impact and Strategic Vision

The GONAT Project, financed by the African Development Bank’s Transitional Support Facility, rests on three pillars: policy analysis and diagnostics, capacity building, and high-level policy dialogue. This initiative supports the Bank’s mission to optimise Africa’s natural wealth for inclusive and sustainable prosperity.

“Achieving transparent and equitable natural resource management is not merely a technical exercise—it is a strategic imperative for Africa’s future,” said Dr Eric Ogunleye, Director of the African Development Bank’s African Development Institute.

The seminar concluded with a draft communique for national adoption, as participants committed to turning the policy recommendations into practical reforms.