Is illicit finance dimming the shine in Tanzania’s mining sector? --[Reported by Umva mag]

• Illicit financial flows causing major losses to Tanzania’s mining industry.
• Experts cite tax avoidance as the leading motive behind Illicit financial flows.
• Tanzania moves to enforce strict laws to curb Illicit financial flows.

Illicit Financial Flows (IFFs) in Tanzania’s mining sector has become rampant despite government efforts to control the sector. Last month, almost 16 kilogrammes of smuggled gold were seized at the Dar es Salaam Port, a pointer to rising crime amid efforts by the East African country to power growth through increased investment in the mining industry.

Illicit financial flows refers to “the cross-border movements of illegally earned, transferred, or utilized financial capital that deprive countries of essential resources, undermining development and the well-being of citizens.”

IFFs are basically the result of investors seeking to earn profits above a given sector’s average. To do this, the unscrupulous businesses avoid taxes and generally view corporate tax and even corporate …

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