Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. While Africans receive $31 billion in personal remittances from overseas, multinational companies operating on the continent repatriate a similar amount ($32 billion) in profits to their home countries each year.Īfrican governments received $32.8 billion in loans in 2015 but paid $18 billion in debt interest Interest An amount paid in remuneration of an investment or received by a lender. Yet $203 billion was taken from Africa, either directly – mainly through corporations repatriating profits and by illegally moving money out of the continent – or by costs imposed by the rest of the world through climate change.Īfrican countries receive around $19 billion in aid in the form of grants but over three times that much ($68 billion) is taken out in capital flight, mainly by multinational companies deliberately misreporting the value of their imports or exports to reduce tax. Thus much more wealth is leaving the world’s most impoverished continent than is entering it.Īfrican countries received $161.6 billion in 2015 – mainly in loans, personal remittances and aid in the form of grants. We find that the countries of Africa are collectively net creditors to the rest of the world, to the tune of $41.3 billion in 2015. Research for this report calculates the movement of financial resources into and out of Africa and some key costs imposed on Africa by the rest of the world. Yet many people living in Africa’s 47 countries remain trapped in poverty, while much of the continent’s wealth is being extracted by those outside it.

Its people should thrive, its economies prosper. Africa is rich – in potential mineral wealth, skilled workers, booming new businesses and biodiversity.

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