Edith Akorfa Akua Lumor, Director of Finance at the African Union Commission said Africa loses 88.6 Billion Dollars in illicit financial flows and 50 billion to corruption annually, according to the UN Conference on Trade and Development (UNCTAD).
Illicit financial flows, corruption, debt mismanagement and climate war have dominated the agenda at the 2025 Public Finance Management Conference in Kampala.
At the three-day event under the theme: Enhancing Public Finance in Africa: Progress and Prospects, professional accountants from African countries aim to find ways through which they can help governments tackle the effects of poor finance management, which they say, stifle development.
Edith Akorfa Akua Lumor, Director of Finance at the African Union Commission said Africa loses 88.6 Billion Dollars in illicit financial flows and 50 billion to corruption annually, according to the UN Conference on Trade and Development (UNCTAD).
These, combined rob the continent of significant growth opportunities, according to her, hence the need for closer cooperation amongst the African governments and accounting organisations, to effectively achieve proper public finance management.
//Cue in: “We are sure…
Cue out:…in the continent.”//
She urged stakeholders to embrace transparency, accountability, and collaboration to drive meaningful reforms and to strengthen public finance systems, artificial intelligence and data analytics to help mitigate risks and ensure resources serve citizens effectively.
Illicit financial flows relate principally to commercial transactions, tax evasion, criminal activities like money laundering; drug, arms and human trafficking; bribery, corruption and abuse of office, according to the UN.
In Uganda, it is estimated that illicit financial flows account for 2 Trillion Shillings (509 Million Dollars) while the country loses not less than 9 Trillion Shillings to corruption annually, according to the Inspectorate of Government. The conference is hosted by the Institute of Certified Public Accountants of Uganda (ICPAU), the Pan-African Federation of Accountants and the African Union.
CPA Keto Kayemba, President of PAFA, emphasized that public financial management is the bedrock of economic resilience, governance, and sustainable development and urged stakeholders to strengthen transparency, accountability, and impactful reforms for Africa’s prosperity.
She said the corruption threatens economic stability, but that strong financial oversight can turn the tide. Affirming PAFA’s commitment to ethical accounting, anti-corruption initiatives, and capacity building to safeguard Africa’s public finances, Kayemba highlighted the need for Africa’s public finance systems to evolve with digital transformation and climate finance.
//Cue in: “While we celebrate…
Cue out:…and service delivery.”//
Kayemba also emphasised the need for governments to always take and keep account of their assets and what they have achieved, the main principle behind accrual accounting, instead of cash accounting which only considers revenues and expenditures.
According to her, knowing the assets or resources of the country is important in not only planning for economic growth but also managing debt through prudent borrowing.
//Cue in: “You don’t have…
Cue out:…also just misallocation.”//
Henry Musasizi, the Minister of State for Finance, said Uganda and other African governments had done well in putting in place and implementing public finance management systems, though there were challenges.
He said there were improvements in the overseeing of public expenditure because of the strengthened public finance management systems, reduction of leakages and corruption through digital transformation, as well as increased domestic revenue mobilisation.
According to him, there is also better public debt management with countries borrowing more prudently, but he said, some countries were still threatened by a high risk of debt distress, calling for a balance between borrowing for development and sustaining low debt levels.
Another challenge cited by Minister Musasizi was the persistently low tax-to-GDP ratio, with Uganda’s having stagnated at about 13 percent, though he expressed hope that the ongoing reforms would improve the ratio.
//Cue in: “We are trying…
Cue out:…hinder service delivery.”//
In her remarks, CPA Josephine Ossiya, the President of ICPAU Uganda, said Africa must amplify its voice in global public sector standards development. “Our input in IPSAS (International Public Sector Accounting Standards) is crucial for relevant, jurisdiction-specific accounting standards. Let’s actively participate in shaping Africa’s PFM future!"
She urged public finance leaders to embrace accountability and transparency, adding that ICPAU would continue to support ongoing efforts to enhance public sector efficiency and IPSAS implementation in the country.
