Nexus Between Tax Havens and Illicit Financial Flow of Funds(IFFs) from Africa: A Theoretical Review

This paper examined the nexus between tax havens and illicit financial flow of funds with particular reference to capital flows out African continent. Qualitative content analysis method supported empirical data obtained from multilateral agencies was used for study. The dataset covered forty-four (44) countries period 2005-2014 respectively. Results revealed that absence political will, weak institutional framework, poor regulatory oversight unbridled scramble continent’s mineral resources are some key factors responsible continued rise in IFFs Africa. study also found global consensus on proper treatment remains a challenge fostering needed international collaboration fight scourge. It therefore recommended critical stakeholders like press civil society groups their roles as public watchdogs need do more track report incidences timeously. Also, front, efforts must be made ensure proposed new minimum, corporate rate 15% is adhered first step discourage havens. Keywords: Tax Havens, Illicit funds, Evasion, Africa, Economic Development JEL Classification: B22, E63, H26 DOI: 10.7176/RJFA/13-2-06 Publication date: January 31 st 2022