ActionAid Ghana urges tighter controls on illicit financial flows, better use of external loans

ActionAid Ghana has intensified its advocacy for stronger fiscal governance as the country continues to seek sustainable sources of development financing.

The organisation urges the government to strengthen efforts aimed at closing loopholes that allow illicit financial flows and to intensify the fight against corruption.

According to ActionAid, curbing these losses is critical to expanding the government’s fiscal space and ensuring that more domestic resources are available to fund essential sectors such as education, healthcare and infrastructure.

The CSO also called for more strategic use of external financing, particularly loans from institutions such as the International Monetary Fund and the World Bank.

ActionAid Ghana’s Country Director, John Nkaw, believes such financing should be directed into productive sectors that have the potential to spur economic transformation and create employment opportunities.

He made the remark while speaking to the media on the sidelines of the civil society–government dialogue on financing for development.

“Government and key stakeholders should block the loopholes in illicit financial flows. We should work and support its clampdown on corruption and ensure that all that money is available for development financing. We are making a clear point that the government needs to be international with its bilateral and multilateral donors, such as the IMF and World Bank, to ensure the loans that come into Ghana are invested more productively and sustainably,” John Nkaw said.