Pan-African economic justice advocates have launched a Black Paper calling for sweeping changes to the global financial system, arguing that Africa’s debt problems are linked to illicit financial flows, resource extraction and unequal international financial rules.
The paper was launched during the sixth African Conference on Debt and Development as part of the Stop the Bleeding Campaign, which brings together civil society groups and economic justice organisations seeking alternatives to the continent’s dependence on external financing.
The session, moderated by Jason R. Braganza, brought together representatives from civil society, tax justice organisations, the African Union Commission and Kenya’s legislature.
Speakers described Africa’s economic challenges as a connected “triple drain” involving natural resource extraction, illicit financial flows and debt subordination.
They called for implementation of the Common African Position on Debt, debt cancellation where obligations are considered unsustainable or illegitimate, and greater African influence over global tax and debt rules.
Women Bear Cost of Austerity
Memory Kachambwa, executive director of the African Women’s Development and Communication Network (FEMNET), said debt crises and austerity policies disproportionately affect women because cuts to public services increase the burden of unpaid care work.
“When health systems are underfunded and when infrastructure is not adequate, they compensate for the gaps,” Kachambwa said.
She said governments losing revenue through illicit financial flows had fewer resources available for health, education, water infrastructure and social protection.
Kachambwa argued that tax justice and debt reform should be considered alongside gender equality and investment in public services.
She cited Nigeria as an example of the competing pressures, saying 4% of national revenue goes to health while more than 20% is allocated to foreign debt repayment.
Africa Seeks Greater Role in Tax Rules
Chenai Mukumba, executive director of Tax Justice Network Africa, said African countries had historically been rule-takers in global tax policy but were increasingly seeking a greater role in setting international standards.
She pointed to negotiations over a United Nations framework convention on international tax cooperation as evidence of that shift.
Mukumba said the Stop the Bleeding Campaign had evolved from earlier efforts to address illicit financial flows following the work of the High-Level Panel on Illicit Financial Flows chaired by former South African President Thabo Mbeki.
She said the Black Paper sought to bring debt, taxation and extractive industries into one political framework.
Debt Is a Political Issue
Janet Zhou, executive director of the African Forum and Network on Debt and Development (AFRODAD), said Africa’s debt crisis should not be viewed solely as a matter of domestic financial management.
“The debt process is not a technical issue, so this is a political intervention,” Zhou said.
She rejected explanations that attribute debt distress primarily to corruption, fiscal indiscipline or poor budget management, saying such arguments can overlook weaknesses in the international financial system.
Zhou called for cancellation of unsustainable and illegitimate debts, implementation of the Common African Position on Debt and a UN-based sovereign debt workout mechanism.
AU Backs Stronger Coordination
Patrick Ndzana Olomo of the African Union Commission said the bloc recognised the need to address financial leakages if African countries were to make progress on debt reform.
He cited estimates of about $90 billion in annual illicit financial flows and said stronger cooperation between governments and civil society would be necessary.
Olomo said civil society organisations could provide research, public engagement and independent oversight while the AU Commission provides a policy platform.
Omtatah Calls for Economic Sovereignty
Kenyan Senator Okoiti Andrew Omtatah, who launched the Black Paper, said Africa should reject the notion that it is simply a debtor continent.
He cited estimates that Africa lost more than USD2 trillion between 1970 and 2018 through financial outflows, rising to about USD4.4 trillion when interest is included.
Omtatah said African resources were extracted, converted into capital abroad and then returned to the continent as loans carrying interest.
He called for greater control over natural resources, stronger action against illicit financial flows, reform of sovereign debt mechanisms and investment in care economies.
“International finance, illegal finance… are not a national problem,” Omtatah said. “They’re a systemic problem.”
The advocates said the Black Paper would provide a framework for coordinating campaigns on debt, taxation, natural resources and gender justice.
The Nairobi launch comes as African governments and international institutions continue efforts to reform global tax and sovereign debt systems, with campaigners pressing for greater African participation in setting the rules.
The Stop the Bleeding Campaign said the ultimate objective was to move Africa from dependence on external financial systems toward greater economic sovereignty and control over its resources.
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