TIRI MASAWI
Namibia lost a staggering N$16.7 billion to Illicit Financial Flows (IFFs) between 2022 to 2024 – an amount that is equivalent to 9% percent of the country’s Gross Domestic period (GDP).
A statement released by the Ministry of Finance after a cabinet approval on Wednesday shows that the country continues to bleed potential revenue that could be utilised to develop key sectors like education , health and social other social amenities through IFF
Finance Ministry Spokesperson Wilson Shikoto said the government has been working to stop these illegal flows since 2018.
He said a national Technical Working Group (TWG) led by the Bank of Namibia, with technical assistance availed by the United Nations Conference on Trade and Development (UNCTAD) and support from the Namibia Revenue Agency (NamRA) and the Ministry of Finance, and 13 other Government Offices, Ministries and Agencies, Namibia has successfully estimated the scale of IFFs using national statistics and internationally recognised UNCTAD methodologies.
“The estimates indicate that Illicit Financial Flows amounted to approximately 9% of Namibia’s Gross Domestic Product (GDP) during the period 2022 to 2024,” he said.
Illicit Financial Flows are broadly defined as funds that are illegally earned (source), transferred (the method used for moving it across a border – channel), or utilised (its eventual use) across borders, or whose true origin, destination, or purpose is concealed.
For many years, IFFs have been difficult to quantify. Losses arising from tax evasion, aggressive tax avoidance, trade misinvoicing, corruption, and the proceeds of crime were often considered in isolation, with no consolidated estimate of its overall impact on a country’s economy.
He said Namibia’s Sixth National Development Plan (NDP6) has set a target to reduce Illicit Financial Flows from estimate of N$16.7 billion which represent 9% of Nominal GDP to 5% of GDP by 2030, in line with the Sustainable Development Goals’ aspirations and international efforts to strengthen domestic resource mobilisation.
The participating institutions included the Bank of Namibia (Chairperson), Anti-Corruption Commission (ACC), Namibia Competition Commission (NaCC), Business and Intellectual Property Authority (BIPA), Ministry of International Relations and Trade, Financial Intelligence Centre (FIC), the Namibian Police Force (NamPol), Namibia Financial Institutions Supervisory Authority (NAMFISA), Office of the Prosecutor-General, Namibia Statistics Agency (NSA), Ministry of Industrialisation, Mines and Energy, and the United Nations Office in Namibia.
“Since 2023, several laws have been strengthened to fight trade-related money laundering and illicit financial flows, including the Financial Intelligence Act, the Prevention of Organised Crime Amendment Act, the Virtual Assets Act, the Payment Systems Management Act and the Banking Institutions Act, among others,” he said.
He added that tax rules have also been tightened to close loopholes that previously allowed money to leave the country untaxed.
“Investigators and prosecutors have received additional training and resources to pursue complex cases and trace and recover criminal proceeds. The assessment has strengthened collaboration among all involved Government Offices, Ministries and Agencies and has enabled significant action to address areas contributing to illicit Financial Flows occurring,” he said.
He said authorities have recovered taxes exceeding N$28 million for the State during 2025.
“ In 2026 alone, a single investigation resulted in the recovery of more than forty-five million Namibia Dollars (N$45 million). The assessment also provides a comprehensive view of the sectors, commodities, and trading activities most vulnerable to Illicit Financial Flows. This evidence-based approach supports targeted enforcement actions, policy reforms, and revenue recovery efforts to protect public finances and strengthen economic governance,” he said.
He encouraged the public to play their part by being honest when filing their taxes.
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