Members of Parliament in Tanzania have established a national platform to champion legislative reforms to combat illicit financial flows (IFFs) and promote domestic resource mobilisation. This follows the launch of the African Parliamentary Network on Illicit Financial Flows and Taxation (APNIFFT), Tanzania National Caucus, which was held in Dodoma, Tanzania.
The caucus, which was launched with the support from TJNA and Policy Forum, brought together parliamentarians, deputies, parliamentary officials, academics, and civil society organisations (CSOs) to embark on the journey of promoting tax justice and transparency to address the harmful impact of IFFs in Tanzania.
Gracing the launch of the APNIFFT Tanzania chapter, Deputy Speaker Hon. Mussa Azan Zungu expressed high expectations that the caucus will assist Tanzania in combatting economic injustices. He mentioned that Tanzania, like most of the Sub-Saharan African countries, is experiencing a nagging economic challenge of precious resources being smuggled by investors through tax evasion.
He noted that the caucus will play a critical role in enhancing collaboration among lawmakers and stakeholders from various backgrounds, enabling the pooling of expertise, resources, and ideas to tackle the complex issue of illicit financial flows.
"We must address illicit financial flows and taxation challenges within Tanzania. This newly launched caucus will be a vital platform for fostering cooperation among legislators and stakeholders with different backgrounds. Together, we will combine our knowledge, resources, and innovative ideas to effectively address the intricate issue of illicit financial flows, ultimately contributing to the economic well-being of our country,” Hon. Mussa emphasised.
The chairperson of the APNIFFT, Tanzania chapter, Hon. Abdullah Mwinyi, expressed existing weaknesses in the country’s foreign investment contracts that have been creating loopholes for some of the giant companies’ economic gains.
“Most of the major foreign companies have been injecting billions of money in Tanzania for their own benefit and not of the country. What they do is temper with the legal weaknesses in our investment contract policies,” he said.
He insisted that they will stand at the forefront to ensure that the government is setting and monitoring tight investment policies, especially towards companies that invest in the extractive sector, particularly minerals, oil, and gas, as these are the windows to parasite Tanzania’s economy.
APNIFFT Steering Committee Chairperson Dr. Khanyisile Tshabalala mentioned that the caucus will create a united front against illicit financial activities in Tanzania.
"The caucus will help prioritise allocating resources for investigations, prosecutions, and preventive measures. This will ensure that limited resources are directed where they can have the most significant impact," Dr. Khanyisile noted.
Hon. Nancy Abisai, EAC Regional Coordinator & Member APNIFFT Executive Council, emphasised that the launch addresses the needs of Tanzania, as its contribution plays an essential role in the fight against illicit financial flows and taxation in the country. The caucus launch sets the stage for impending work, with crucial decisions to be made after that.
"The caucus has the potential to bring about meaningful change by fostering cooperation and shaping policies that can significantly reduce the harmful effects of illicit financial flows in Tanzania and the African region." - Hon. Abisai noted.
Semkae Kilonzo, Executive Director of Policy Forum, expressed during the launch that Africa loses approximately between US$ 50 and US$80 billion annually through illicit financial flows, depriving African countries of the capacity to build their economies.
“We are proud to be part of this launch, as it is a fresh chapter for Tanzania to step up efforts to combat illicit financial flows,” he said.
For further information about APNIFFT and its various initiatives, interested parties are encouraged to contact Edwin Birech at ebirech(@) taxjusticeafrica.net.