Botswana is losing millions of dollars yearly to corruption, and tax evasion says the Washington-based Global Financial Integrity (GFI), a non-profit research and advocacy organization.

In its latest report titled “Illicit Financial Flows from Developing Countries”, GFI said the diamond rich Botswana is losing 10 billion Pula ($856 million) per year, and this is made worse by the fact that the southern African country has long abolished exchange controls.

“Illicit financial flows are the most damaging economic problem plaguing the world’s developing and emerging economies. Botswana therefore is not an exception as it struggles with lack of funds to deal with problems of high unemployment, declining diamond revenues and Aids scourge,” said GFI President Raymond Baker in the report.

The report  says its findings underscore the urgency with which policy makers should address illicit financial flows.

Since the early 1980s, Botswana has been the world’s largest producer of gem diamonds. In the past few years Botswana has had the highest average economic growth rate in the world; averaging about 9 percent per year. But the economy of Botswana stagnated up until the early 2010 when it registered for the first time since the economic boom a GDP growth up above the 6-7 percent target.

By George Mpofu