The Centre for Trade Policy and Development (CTPD) has expressed concern with the continued rise in illicit financial flows in Zambia, as revealed in the 2024 Financial Intelligence Centre (FIC) Trends Report.
According to the report, Zambia potentially lost $3.5 billion in one year through tax evasion, trade mis-invoicing, and illegal mining activities.
CTPD Public Finance Researcher, Robert Mwale, noted that this figure represents nearly 42% of the proposed 2025 National Budget, which severely undermines the country’s ability to fund critical public services.
“These leakages are depriving Zambia of much-needed resources to support vital sectors such as free education, healthcare, and the procurement of essential medical supplies,” said Mr. Mwale in a statement issued to RCV News in Lusaka today.
Mr. Mwale warned that without urgent and decisive action, Zambia risks worsening its development challenges.
He called for immediate reforms to enhance the effectiveness of Law Enforcement Agencies (LEAs), particularly the Anti-Corruption Commission (ACC) and the Drug Enforcement Commission (DEC), in prosecuting financial crimes.
Mr. Mwale further recommended a review of key legislation, including the Companies (Amendment) Act No. 12 of 2020, to improve transparency around beneficial ownership and expose shell companies facilitating illicit financial activities.
In addition, Mr. Mwale highlighted the need to accelerate the implementation of the Integrated National Registration Information System (INRIS) to better combat identity-based financial crimes.
By Christabel Kamunu
