AfDB Empowers Central African Republic to Tackle Illicit Financial Flows and Improve Loan Governance.

Thursday 19th June 2025

Por inAfrika Reporter

The African Development Bank has successfully wrapped up a major workshop aimed at strengthening the Central African Republic’s capacity to combat illicit financial flows and manage resource-backed loans. Held in Bangui, the four-day event brought together over 80 participants from government ministries, civil society, the private sector, and local communities.

With a focus on the theme “Harnessing Africa’s Wealth: Curbing Illicit Financial Flows for Resilient Growth and Development,” the sessions introduced participants to key methods for detecting and addressing illegal financial outflows that continue to undermine African economies. Illicit financial flows, especially those linked to the underpricing and misreporting of natural resources, cost the continent billions annually and restrict development potential.

Participants engaged with advanced tools such as the Partner Country Method, trade mis-invoicing techniques, and financial transparency indices to assess discrepancies in export declarations. These tools are vital for revealing inconsistencies in high-value sectors like gold and diamond exports.

The workshop also addressed the increasing use of resource-backed loans – financial instruments collateralised by natural resources. While these loans offer significant infrastructure development potential, experts warned of the risk of debt traps if repayment terms aren’t thoroughly managed. Minister Rufin Benam Beltoungou of Mines and Geology cautioned that without proper governance, natural resource wealth could fuel political instability and unsustainable debt.

Women’s participation in governance and oversight of extractive industries was another key focus. The workshop aimed for at least 40% female participation, a benchmark applauded by attendees. Female leaders, such as Alexia Molotouala of the Kimberley Process Secretariat, highlighted how involving women in resource governance improves fairness, transparency, and social cohesion.

Dr. Eric Ogunleye, Director of the African Development Institute, closed the workshop by reinforcing the importance of practical tools and collaborative strategies. He stressed that sound natural resource management and loan oversight are critical for countries like the Central African Republic to build economic resilience and sustainable growth.

This initiative is part of AfDB’s GONAT project, which targets improved resource governance in fragile and transitional states. By equipping local leaders with concrete strategies and tools, the Bank hopes to enable countries to reclaim control over their natural assets.