Resource Companies Are Ripping Off Africa – AfDB Chief

Resource Companies Are Ripping Off Africa - AfDB Chief
Donald Kaberuka

AFRICANGLOBE – President of the African Development Bank Group (AfDB), Donald Kaberuka has said Governments should increase taxes on foreign mining and energy companies operating on the continent.

According to Reuters, Kaberuka at a lunch in London, said: ‘‘The reality is that Africa is being ripped off big time… it is a collective idea and not just a G8 agenda, that we make sure everybody pays what is due.’’

The British Deputy Prime Minister Nick Clegg, Presidents of Ghana, Guinea, Senegal, Somalia, Tanzania and the Minister of Finance for Nigeria, were present at the meeting.

A report revealed the Democratic of Congo for example lost at least $1.36 billion in potential revenues between 2010 and 2012 due to cut-price sales of mining assets to offshore companies.

Kaberuku also said Africa should start to use its resources smartly since aid to the continent from the developed world had been reduced for the first time in 10 years.

The African Development Bank is a multilateral development and finance institution, established to target poverty, and to contribute to the economic and social progress of African countries.

The Bank forecasts growth in Africa at 4.8 percent this year with Africa – excluding South Africa- the fastest growing region at 6.6 percent.

‘‘Africa wants to grow itself out of poverty through trade and investment, we must ensure that there is transparency and fair trade’’, he concluded.


By: Oyeniyi Adegoke