On the Trail of Capital Flight from Africa: The Takers and the Enablers

268 Pages·2022·1.686 MB·English

by  Léonce Ndikumana (editor), James K. Boyce (editor)

On the Trail of Capital Flight from Africa

On the Trail of Capital
Flight from Africa
The Takers and the Enablers
Editedby
LÉONCE NDIKUMANA
and
JAMES K. BOYCE
1
3
GreatClarendonStreet,Oxford,OX26DP,
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ISBN978–0–19–885272–8
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Acknowledgements
Weoweasinceredebtofgratitudetothemanyindividualsandinstitutionswho
contributeddirectlyandindirectlytobringthisbooktocompletion.Weespecially
appreciatethevaluablecontributionsfromexpertsandpolicymakersinAngola,
Côte d’Ivoire, South Africa, and elsewhere—notably Portugal, France, and the
UK—whodonatedtheirtimeandknowledge,aswellasprovidingvaluabledata
andqualitativeinformationtotheauthorsofthecasestudies.Theirassistanceis
greatlyappreciated.
We are grateful to the Open Society Foundations (OSF) for a grant that sup-
portedthisproject,andtotheFreidrichEbertStiftunginBerlinandthePolitical
EconomyResearchInstituteattheUniversityofMassachusettsAmherstforvalu-
ableadditionalsupport.
LéonceNdikumanaandJamesK.Boyce
Amherst,Massachusetts
January2022
List of Figures
3.1. Angola 38
4.1. Mapofmajorcacaoareas 101
4.2. Topcacaoproducers 104
4.3. BreakdownofthepriceofamilkchocolatebarsoldinEurope 107
5.1. CapitalflightfromSouthAfrica:5-yeartotals 152
5.2. Domesticsavingandinvestment,1960–2018 160
5.3. Foreigndirectinvestment:cumulativeinward,outward,andnetinflowsby
decade 166
5.4. Thenetworkofenablers 182
6.1. Themoneylaundering“value”proposition 195
6.2a. Procedureforgeneralmerchandise(excludingoilandgas)exportsin
Nigeria 214
6.2b. Documentationrequiredforgeneralmerchandise(excludingoilandgas)
exportsinNigeria 215
6.2c. Exporterresponsetoinstitutions(incentivestructure)governingexportsof
generalmerchandise(excludingoilandgas)inNigeria 216
List of Tables
2.1. CapitalflightfromAngola 18
2.2. CapitalflightfromCôted’Ivoire 19
2.3. CocoaexportmisinvoicinginCôted’Ivoire,2000–2018 20
2.4. CapitalflightfromSouthAfrica 21
2.5. Non-monetarygoldexportmisinvoicinginSouthAfrica,2000–2018 22
2.6. PlatinumexportmisinvoicinginSouthAfrica,2001–2018 23
2.7. Estimatesofoffshorewealthasstockofcapitalflight 27
5.1. Non-monetarygoldexportsinSouthAfrica,2000–2018 154
5.2. ExternaldebtburdenindicatorsinSouthAfrica,1994–2018 155
5.3. PrivatewealthandnumberofHighNetWorthIndividuals,2018 157
5.4. Samplelistoftransactionslabelledas“inter-companyloans”atBank
ofBaroda,2007–2017 179
6.1. ResourceintensityinselectedAfricaneconomies 210
6.2. TypesofexportcertificatesinNigeria’sexportregime 212
6.3. DescriptionofgeneralmerchandiseimportprocessinNigeria 219
6.4. Descriptionofgeneralmerchandiseimportclearingsub-processinNigeria 221
List of Acronyms
ACE AuditContrôleetExpertise
ADM ArcherDanielsMidlandCompany
AMCU AssociationofMineworkersandConstructionUnion
AML Anti-moneylaundering
ANAPROCI AssociationNationaledesProducteursdeCafé-CacaodeCôted’Ivoire
[NationalAssociationofCoffeeandCocoaProducersofIvoryCoast]
ANC AfricanNationalCongress
API AmericanPetroleumInstitute
B/L billoflading
BAI BancoAfricanodeInvestimentos
BASIC BureaufortheAppraisalofSocialImpactsforCitizenInformation
BCEAO BanqueCentraledesÉtatsdel’Afriquedel’Ouest[CentralBankofWest
AfricanStates]
BdP BancodePortugal
BEE BlackEconomicEmpowerment
BES BancoEsp´ıritoSanto
BESA BancoEsp´ıritoSantoAngola
BIS BankforInternationalSettlements
BNA BancoNacionaldeAngola
BNI BanqueNationaled’Investissement[NationalInvestmentBank]
BoP balanceofpayments
BWIs BrettonWoodsInstitutions
CAA CaisseAutonomed’Amortissement[AutonomousAmortizationFund]
CAISTAB Caisse de Stabilsation et de Soutien des Prix des Produits Agricoles
[StabilizationandPriceSupportFundforAgriculturalProducts]
CBS StatisticsNetherlands
CCC ConseilCafé-Cacao[Cocoa-CoffeeCouncil]
CCHA CompagnieCommercialeHollandoAfricaine
CD CertificateofDeposit
CEO ChiefExecutiveOfficer
CFAfranc Communautéfinancièred’Afriquefranc[francoftheFinancialCommu-
nityofAfrica]
cif cost,insuranceandfreight
CIF ChinaInternationalFund
CIU CustomsInspectionUnit
COD CountryofDestination
COMD CrudeOilMarketingDepartment
COO CountryofOrigin
x listofacronyms
CPC CustomsProcessingCenter
CSA CoalSupplyAgreement
DN DebitNote
DOTS DirectionofTradeStatistics
DPR DepartmentofPetroleumResources
DRC DemocraticRepublicofCongo
DTI DataTransmittingInterface
DUS Droituniquedesortie[Singleexitduty]
ECOWAS EconomicCommunityofWestAfricanStates
EFCC EconomicandFinancialCrimesCommission
EIR EquipmentInterchangeReport
EU EuropeanUnion
FCPA ForeignCorruptPracticesAct
FDI Foreigndirectinvestment
FDPCC Fonds de Développement et de Promotion des Activités des Produc-
teursdeCaféetdeCacao[FundforDevelopmentandPromotionofthe
ActivitiesofCoffeeandCocoaProducers]
FGCC FondsdeGarantiedesCoopérativesCaféetCacao[GuaranteeFundfor
CoffeeandCocoaCooperatives]
FILOCOM FichierdesLogementsparCommunes[HousingRecordsbyCommune]
FN ForcesNouvelles[NewForces]
fob freeonboard
FPI FrontPatriotiqueIvoirien[IvorianPatrioticFront]
FPSO Floatingproduction,storageandofftakeplatform
FRCC FondsdeRégulationduCaféetduCacao[RegulatoryAuthorityforCoffee
andCocoa]
FT FinancialTimes
GDP GrossDomesticProduct
ICCO InternationalCocoaOrganization
ICIJ InternationalConsortiumofInvestigativeJournalists
IDC InvestissementDéveloppementConseil
IMF InternationalMonetaryFund
IMTS InternationalMerchandiseTradeStatistics
IOC Independentoilcompany
IIP internationalinvestmentposition
IP Intellectualproperty
ISO InternationalOrganizationforStandardization
ITIC InternationalTransportationandInsuranceCost
JSE JohannesburgStockExchange
JVs Jointventures
KYC know-your-customer
LSE LondonStockExchange
MPLA MovimentoPopulardeLibertaçãodeAngola
NBER NationalBureauofEconomicResearch
NCS NigerianCustomsService
listofacronyms xi
NEPC NigerianExportPromotionCouncil
NIMASA NigerianMaritimeandSafetyAdministrationAgency
NNPC NigerianNationalPetroleumCorporation
NPDC NigerianPipelineDevelopmentCorporation
OCM OptimumCoalMine
OECD OrganisationforEconomicCo-operationandDevelopment
OPEC OrganizationofthePetroleumExportingCountries
OPM OtherPeople’sMoney
PAAR Pre-ArrivalAssessmentReport
PDCI PartiDémocratiquedelaCôted’Ivoire[DemocraticPartyofIvoryCoast]
PEPs PoliticallyExposedPersons
POS pointofsale
PwC PricewaterhouseCoopers
R&D Researchanddevelopment
RDA RassemblementDémocratiqueAfricain[AfricanDemocraticParty]
RDR RassemblementdesRépublicains[RepublicanParty]
SADC SouthernAfricanDevelopmentCommunity
SAIE SociétéAfricained’Importationetd’Exportation[AfricanImport-Export
Association]
SARB SouthAfricanReserveBank
SARS SouthAfricanRevenueService
SEC USSecuritiesandExchangeCommission
SGD SingleGoodsDeclaration
SIFCA Société Financière de la Côte Africaine [Financial Corporation of the
AfricanCoast]
SITC StandardInternationalTradeClassification
SSA Sub-SaharanAfrica
SVDP SpecialVoluntaryDisclosureProgram
SYNAP-CI SyndicatNationalAgricolePourLeProgrès[NationalAgriculturalUnion
forProgress]
TAIS TransAfricaInvestmentServices
TDO TerminalDeliveryOrder
UAE UnitedArabEmirates
UNComtrade UnitedNationsInternationalTradeStatisticsDatabase
UNCTADstat UnitedNationsConferenceonTradeandDevelopmentStatistics
UNDP UnitedNationsDevelopmentProgramme
UNITA UniãoNacionalparaaIndependênciaTotaldeAngola