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ATAF Reaffirms Commitment to Combating Illicit Financial Flows a Decade After Mbeki Panel Report

ATAF

Gambiaj.com – (Johannesburg, South Africa) – The African Tax Administration Forum (ATAF) has renewed its commitment to tackling illicit financial flows (IFFs) across the continent, a decade after the landmark High-Level Panel (HLP) report spearheaded by former South African President Thabo Mbeki set out a blueprint for Africa’s response.

Speaking at the 13th Pan-African Conference on Illicit Financial Flows in Johannesburg on Monday, ATAF Executive Secretary Mary Baine described the gathering as a crucial milestone in the continent’s fight against financial leakages that drain billions from African economies.

It is indeed an honor to address this momentous occasion, especially at a time that marks ten years since H.E. President Thabo Mbeki provided the blueprint on combating illicit financial flows,” Baine said.

Over the past decade, ATAF has taken significant steps to implement the HLP’s recommendations, including the development of transfer pricing frameworks, strengthening the exchange of information, addressing double taxation, and tackling wasteful tax incentives.

Baine highlighted the organization’s role in amplifying Africa’s voice in global tax negotiations, particularly through its contributions to the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project.

“Our determination was to ensure that African experiences are reflected in the design of international tax rules. The past decade has been both reflective and progressive,” she noted.

According to Baine, ATAF has helped African countries achieve tangible results in the fight against IFFs. Cumulative tax assessments facilitated by ATAF now total USD 5.4 billion, with USD 2.5 billion already collected.

Since 2016, the organization has supported 72 legislative reforms across its member countries, including model laws on transfer pricing, permanent establishment, and VAT fraud prevention.

In 2025 alone, ATAF has recorded strong progress: in the first seven months, it achieved USD 230.1 million in additional assessments—23% of its annual target—and USD 217.2 million in collections, representing 43% of its target. Much of this came from transfer pricing adjustments and VAT on digital services.

Baine also drew attention to new and emerging challenges in illicit finance, including smurfing, trade mispricing, the misuse of cryptocurrencies, and sophisticated offshore structures used by multinational corporations.

In response, ATAF has conducted 77 technical missions across 21 countries this year, focusing on sectors such as extractives, cross-border VAT, and IFF-related issues.

A key initiative driving ATAF’s current work is the Revenue Action for Development in Africa (RADA) program, launched at the Financing for Development Conference.

The initiative aims to double Africa’s revenue collection within five years by targeting an additional USD 5.4 billion in assessments and USD 2.5 billion in collections to fund infrastructure, health, and climate action while reducing debt through stronger domestic resource mobilization.

Baine praised the contributions of Africa’s institutional partners in the fight against IFFs, commending the African Union for its leadership, the Tax Justice Network Africa for sustained advocacy, and the United Nations Economic Commission for Africa (UNECA) for technical support.

Our work on combating IFFs is not yet complete,” she said. “What we have in place are the tools and partnerships to ensure that we continue to combat IFFs. ATAF remains committed to supporting African countries in mobilizing domestic resources for sustainable development.”

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