SA Urges G20 to Tackle Illicit Financial Flows with Bold, Unified Action

The South African government has issued a strong call to G20 nations to urgently address illicit financial flows (IFFs), which are costing the country billions each year.

Speaking during the second day of the G20 Development Working Group meeting in Somerset West, Deputy Minister in the Presidency for Planning, Monitoring and Evaluation, Seiso Mohai, emphasized the need for coordinated global action to confront illegal cross-border financial activities.

“It is estimated that about R88 billion of the country’s funds are lost annually through illicit financial flows,” Mohai said. “This includes smuggling, tax evasion, and other forms of illegal transactions. It’s a very serious issue not only for South Africa but for the entire continent.”

Illicit Flows Harming Development

Mohai highlighted that illicit financial flows directly undermine national development goals by draining critical resources from already stretched public budgets. He said South Africa is committed to pushing this issue onto the G20’s agenda with urgency and boldness.

“We have to address this issue unashamedly. It must be prioritised. That’s why we’re calling for a collaborative effort where all countries take this seriously and act decisively,” he added.

No More Delays—Time for Action

South Africa has adopted a proactive stance, even encouraging more research into the root causes and impact of these illegal flows. Mohai noted that understanding the depth of the issue will help governments close legal loopholes and improve cross-border financial regulations.

“Our country has taken a very clear position—we cannot afford to delay. Even further research must be commissioned so we fully understand the patterns and scale of this threat,” Mohai said.

The G20 Development Working Group meeting, which runs for three days, brings together international delegates to discuss strategies for inclusive economic growth, development, and improved financial governance. South Africa’s firm stance signals a growing demand for transparency and cooperation on financial matters.

As IFFs continue to hamper economic development in the Global South, leaders like Mohai believe the G20 must act now—before more public wealth disappears offshore.

{Source: SABC}

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