Designstöd TEI IFF Afrika

Expected Results: 1) Stakeholder engagement and contacts established: Two detailed study trips (January and March 2024) facilitated meetings with relevant national agencies and stakeholders: January Trip: Rwanda: Meetings with the Tax Administration, Ministry of Finance, and Financial Intelligence Centre (FIC), establishing groundwork for future collaborations. Kenya: Engagements with Diakonia, UNODC, Civipol, and the Kenya Revenue Authority (KRA). Participation in the STAKRA workshop utilizing the PDIA (Problem-Driven Iterative Adaptation) methodology. Ethiopia: Meetings with the Ministry of Finance, UNODC, and the EU Delegation to explore potential synergies. March Trip: Zambia: Meetings with the Financial Intelligence Unit (FIU) and Ministry of Finance provided insights into local priorities and resources. South Africa: Discussions with the Tax Administration, Ministry of Finance, FIU, ATAF (African Tax Administration Forum), and CABRI (Collaborative Africa Budget Reform Initiative). Botswana: Engagements with the FIC, Ministry of Finance, and BURS (Botswana Unified Revenue Service) identified opportunities for deeper collaboration. Results: Established highlevel contacts with over 20 government agencies and stakeholders across six countries (Rwanda, Kenya, Ethiopia, Zambia, South Africa, Botswana). These included tax authorities, financial intelligence units, and ministries of finance. Garnered strong interest and commitment from national stakeholders to address Illicit Financial Flows (IFF), confirming alignment with government priorities. 2) Drafting and development of the project proposal: Supported by a Sida funded external consultant, STA developed and refined a project proposal in collaboration with Expertise France. Iterative updates were completed in February and April 2024, incorporating feedback from stakeholders, and ensuring alignment with EU expectations. 3) Internal capacity building: Six internal coaches were recruited by May 2024 to support the project at the national level. The selection process involved interviews and documentation to ensure candidates were wellsuited for their roles. Coaches underwent preparation for their responsibilities, including hybrid training sessions and planning meetings with national teams. 4) Strengthened inter-agency collaboration: STA maintained continuous communication with Swedish government agencies involved in combating IFF, including the Police, Financial Supervisory Authority, Economic Crime Agency, and Swedish Courts. Physical and digital meetings facilitated joint planning and knowledge sharing, improving overall project alignment. Established a shared vision and division of roles among Swedish partners, fostering a unified approach to combating IFF. Unexpected Results: Despite proactive planning, the EU agreement was delayed, necessitating two no-cost extensions approved by the Swedish Embassy in Addis Ababa. This delay impacted timelines for initiating the fullfledged project but provided additional time to strengthen foundational work.

Illicit capital flows pose major challenges to development, peace, security and stability in Africa, jeopardizing the integrity of financial structures and depriving countries of important resources. These illicit financial flows (IFFs), representing money earned, transferred or used illegally, originate from a variety of criminal activities, including tax and commercial interests, illegal markets, corruption, human exploitation activities and the financing of terrorism. From time to time the European Commission asks Swedish agencies to participate in Team Europe Initiatives (TEI) and in 2023, the Swedish Tax Agency was approached to contribute to the TEI named "Fighting Illicit Financial Flows, Money laundering and the Financing of Terrorism in Sub-Saharan African". After discussions with Expertise France, the Swedish Tax Agency agreed to co-write a project proposal for a four year project that will contribute to the overall objectives of the TEI on IFF and to be a partner within the project. The objective of this "design support" is to enable the Swedish Tax Agency, together with its Swedish partners, Expertise France and CIVIPOL, to design a promising project proposal which will be presented to the Embassy in Addis Abeba in early 2024.