Illicit finacial flows negatively impacting Zambia’s development – Mpampi

Ministry of National Development Planning assistant director Francis Mpampi says the continued loss of resources through illicit financial flows such as tax evasion and avoidance has capacity to negatively affect the attainment of Sustainable Development Goal targets.

In a statement issued by First Secretary for Press at the Zambian Permanent Mission to the United Nations wallen Simwaka, Mpampi said this when he delivered a speech at the 2019 Economic and Social Council (ECOSOC) forum on Financial for Development (FFD) follow-up at the UN Headquarters in New York.

Simwika stated that Mpampi, however, informed the gathering that Zambia was implementing progressive legal and structural reforms aimed at halting illicit financial flows and supporting fiscal consolidation and growth to attain the SDGs targets.

Meanwhile, Mpampi told the United Nations that the enactment of the Public Finance Management and the Credit Reporting Acts in Zambia were aimed at enhancing accountability, transparency as well as prudent use of public resources.

“It is evident that we have not made significant progress to finance development and will not be able to reach the Sustainable Development Goals at the current rate. The continued bleeding or loss of resources through illicit financial flows including through tax evasion and avoidance, corruption and other related challenges negatively impact on government’s revenue measures,” Mpampi observed.

Mpampi further observed that the absence of a formidable private sector to champion and galvanise the private sector and strengthen their participation in accelerating efforts for alternative financing was another threat to the attainment of SDGs.

He noted that Zambia recognised the important role that private sector actors play in helping to minimise financial risks apart from assisting in attracting private capital flows for infrastructure development.

Mpampi explained that unless the constraint of limited domestic private finance base and the inadequacy of self-driven private sector initiatives to partner with government was addressed, Zambia’s desire of attaining the targets of its National Development Plans would not be unfulfilled.

Meanwhile, Mpampi called for enhanced international support and establishment of multi-stakeholder partnerships to support implementation of National Development Plans.

“With regards to technological advancement, we seek innovation that promotes growth of new jobs. In the area of tax, we seek partners’ collaboration in developing modern and progressive tax systems. Capacity development will be fundamental in fostering implementation of the SDGs. We therefore call for enhanced international support and establishment of multi-stakeholder partnerships to support implementation of National Development Plans which are purpose vehicles for the actualisation of the SDGs,” said Mpampi.

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