Sierra Leone and the African Development Bank Group (AfDB) are intensifying efforts to strengthen natural resource governance and combat the estimated $90 billion Africa loses annually to illicit financial flows (IFFs).
A four-day high-level seminar, which concluded last week, yielded concrete recommendations aimed at tackling this critical economic challenge.
Over 70 stakeholders, including representatives from the government, civil society, the private sector, and international organizations, convened at The Place Resort in Tokeh. The seminar, themed “Harnessing Africa’s Wealth: Curbing Illicit Financial Flows for Resilient Growth and Development,” underscored the urgency of addressing IFFs as one of the continent’s most pressing economic issues.
The discussions culminated in specific policy recommendations, including the establishment of national communities of practice, the implementation of crucial institutional reforms, and enhanced transparency in resource-backed lending (RBL). Participants agreed that RBLs should be considered “an option of last resort” and used only with maximum transparency, for investments that directly support 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,” stated Sierra Leone’s Finance Minister Sheku Ahmed Fantamadi Bangura.
The workshop sessions were meticulously designed to focus on key areas: identifying illicit financial flows, effectively managing resource-backed lending, and developing transparent governance mechanisms. Participants thoroughly reviewed findings from the Sierra Leone Country Diagnostic Report, which provided insights into illegal natural resource trade and existing institutional capacity gaps. International expert Bernd Schlenter from Rand Sandton Consulting Group offered valuable technical insights on IFF patterns and policy recommendations during the intensive sessions.
Halima Hashi, AfDB Country Manager for Sierra Leone, noted that this project aligns seamlessly with the Bank’s Ten-Year Strategy 2024-2033 and its Natural Resources Management and Investment Action Plan 2025-2029.
The initiative, known as the GONAT Project, is funded by the African Development Bank’s Transitional Support Facility and is structured around three core pillars: policy analysis and diagnostics, capacity strengthening, and high-level policy dialogue. It actively supports the AfDB’s overarching mission to optimize Africa’s natural wealth for inclusive prosperity.
“Achieving transparent and equitable natural resource management is not merely a technical exercise—it is a strategic imperative for Africa’s future,” affirmed Dr. Eric Ogunleye, Director of the African Development Bank’s African Development Institute.
The seminar concluded with a draft communiqué for national adoption, with all participants pledging to transform the formulated policy recommendations into actionable reforms for better governance and greater economic resilience.
ABJ/APA
