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HomeLatestEthiopia lost 44 billion USD in illicit financial flows 

Ethiopia lost 44 billion USD in illicit financial flows 

Illicit cash _ Ethiopia
Image source : IMF

By Hailegebriel Endeshaw
Staff Reporter

ADDIS ABABA – (BORKENA) – The illicit cash that flowed out of Ethiopia over the past ten years is estimated to be over 44 billion USD, according to sources.

Macroeconomic analyst and researcher, Professor Alemayehu Geda said that in ten years 45 billion USD has flowed out of the country. This amount exceeds the entire amount that flowed out over the last 44 years, according to the professor.

Professor Alemayehu said in an interview he had with a local radio, Sheger FM 102.1 referring to a study that 31 billion USD flowed out of Ethiopia over the last 44 years.

He further said that a large amount of hard currency is circulating across the city informally beyond the normal system.

Lack of serious security feelings and failure of supervision from the government side accounted for the major pushing factors of the cash flow, according to the economic analyst.

The professor said that the government should try to solve the problems by identifying and filling gaps so that billions of dollars will not be flowing out. 

Moreover, the government should work on the system of hard currency exchange; give emphasis on mining sites, at checking points and acting on the general rules and regulations. This will generate incomes with a rate not less than that of exports, the professor noted.

Professor Alemayehu Geda was asked whether the free flow of hard currency could be a possible alternative. He said that opening a system of free flow of hard currency is “a fraudulent policy. Illicit market is always like a shadow. It flees when you near it. This needs neither study nor research. We have seen it for the last four years. Here the market naturally does not need a legal marketing system….”

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