A person holds money in her hand and types on a calculator. © GIZ/Lucas Wahl

Africa finances its sustainable development

Strengthening Financing for Development in Africa through Combating Illicit Financial Flows and Effective Debt Management (SFIFD)

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  • Commissioning Party

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Country

    African Union (AU), selected AU Member States

  • Lead executing agency

    More

  • Overall term

    2024 to 2028

  • Products and expertise

    Governance and democracy

Context

A lack of financing for development is preventing African countries from achieving the United Nations’ Sustainable Development Goals. The various crises that have occurred in recent years – especially violent crises – have further reduced the financial resources that are available. The looming global debt crisis, falling investment in the Global South and high inflation rates are also exacerbating this situation. It is therefore crucial to support Germany’s partner countries in building their financial independence and resilience. This means minimising losses from illicit financial flows (IFFs), increasing states’ own revenues, ensuring effective debt management and generating more private investment.

Objective

Countries in Africa have more financial resources to invest in education, health services, a socially just and environmentally sustainable economy, and infrastructure.

Approach

The project operates in the following areas:

  • It advises government institutions in Africa on preventing and prosecuting illicit financial flows, money laundering and terrorist financing and on recovering funds.
  • It advises the African Union Commission (AUC) on developing strategies to optimise and harmonise the tax policies of its member states and improve government revenues.
  • The project also advises AUC on improving debt management in member states. The aim is to reduce the amount that countries have to spend on interest and repayments for loans.

Last update: July 2024