Africa loses US$29bn of its wealth yearly- IEA report

Africa loses US$29billion yearly through illegal logging, fishing and trade in wildlife, a publication by the Institute of Economic Affairs (IEA) dubbed ‘Africa is Not Poor, We Are Stealing its Wealth’ has revealed.

“There are also more indirect means by which we pull wealth out of Africa. It is estimated that US$29billion a year is being stolen from Africa in illegal logging, fishing and trade in wildlife.

“As much as US$36billion is owed to African countries as a result of the damage that climate change will cause to their societies and economies, as they are unable to use fossil fuels to develop in the way that Europe did. Our climate crisis was not caused by Africa, but Africa will feel the effect more than others. Needless to say, the funds are not currently forthcoming,” the report noted.

The report further stated that to curb the situation, African countries must not be forced to open up their economies to unfair competition. “The first task is to stop perpetuating the harm they are doing. Governments need to stop African governments opening up their economy to privatisation, and their markets to unfair competition.”

Activities of illegal trade – especially in fishing – have gained much attention recently, as various reports and studies have raised serious concerns about its debilitating effects on economies of countries.

A recent Organisation for Economic Cooperation and Development (OECD) research showed that the fisheries sector is of strategic importance to many countries but remains vulnerable to a wide range of tax crimes and other transgressions – including money laundering, corruption, drugs and arms smuggling.

Ghana’s depleting fish and forests

Global losses due to Illegal unreported and unregulated fishing alone are estimated to be as high as US$23.5billion per year – with West African waters, including Ghana, deemed to have the highest levels of IUU fishing in the world, representing up to 37 percent of the region’s catch.

Also, a recent study by Frontiers in Marine Science states that the West Africa region (coastal countries) loses an estimated US$2.3billion annually to illegal fishing.

In Ghana, more than 10 percent of the country’s 28 million population are said to be engaged in the fisheries sector; the greater part of the people dependent on fisheries are artisanal fisher-folk and fishmongers, according to the Ministry of Food and Agriculture.

On illegal logging, a research by the Tropical Forest Alliance (TFA) 2020, found that due to excessive deforestation, Ghana’s forest cover has dwindled from a high of 8.4 million hectares as at 1900 to a present low of 1.8 million hectares.

This, according to the research, means a total of US$236million is needed over a period of five years to increase the country’s forest cover from the paltry 1.8million hectares to a healthy 5.9million hectares.

The data show that between 1990 and 2000 Ghana lost an average of 135,000 hectares per annum, and the current deforestation rate is estimated to be between 3.2 percent per annum.

The Domestic Lumber Trade Association (DOLTA) has constantly expressed worry over over-exploitation of the country’s forests, as about 90 percent of wood produced domestically is sub-standard.

Efforts to curb the menace

One of the measures taken to fight IUU is establishment of the Agreement on Port State Measures (PSMA), which came into force in 2016.

The PSMA is complemented by a suite of other instruments: such as the FAO Voluntary Guidelines for Flag State Performance adopted in 2014, and the FAO Voluntary Guidelines on Catch Documentation Schemes adopted in 2017 to provide better and more harmonised traceability of fish along the value chain.

The PSMA is the first binding international agreement that specifically targets illegal, unreported and unregulated fishing. So far, 54 states and the European Union have become Parties to the Agreement, and many have already started implementing the provisions.

On illegal logging, the Forest Law Enforcement Governance and Trade (FLEGT) was established in 2003 with the aim of reducing illegal logging by strengthening sustainable and legal forest management, improving governance and promoting trade in legally produced timber.

Government has said it is ready to implement the FLEGT as plans are now advanced to commence and test the licencing regime this year.

Thebftonline.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here