Tackling corruption: A critical pathway to accelerating GDP growth in Africa

Across Africa, one obstacle continues to quietly but persistently rob nations of their development potential: corruption. It bleeds public resources, distorts markets, weakens institutions, and erodes the social contract between governments and citizens. More importantly, corruption is not merely a moral issue—it is a massive economic drain, with far-reaching implications for investment, productivity, and GDP growth.

For Africa to unlock inclusive, sustainable prosperity, addressing corruption must move from political rhetoric to strategic economic policy. Anti-corruption is not just about cleaning up systems—it’s about powering up growth.

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The economic cost of corruption

According to the African Union, the continent loses an estimated $148 billion annually to corruption, about 25 percent of Africa’s GDP. These losses manifest in inflated contracts, ghost workers, tax evasion, money laundering, and embezzled funds that should have gone into schools, hospitals, roads, and energy infrastructure.

Corruption also distorts resource allocation. Rather than funding the most productive or impactful projects, resources are channelled based on nepotism, patronage, or bribery. This reduces economic efficiency, limits job creation, and increases business costs, undermining investor confidence and driving foreign and domestic capital elsewhere.

In the long term, corruption stunts human capital development, weakens governance, and sustains poverty. It is a silent tax on low-income people and a brake on national competitiveness.

Corruption as a barrier to private sector growth

The private sector, often hailed as the engine of growth, is most affected by corruption. Businesses face extortion at checkpoints, demand for bribes in procurement, opaque regulatory environments, and skewed access to finance. Small and medium enterprises (SMEs)—over 80 percent of Africa’s businesses—are especially vulnerable.

Innovation stalls and job creation is stifled when entrepreneurs cannot compete fairly or secure contracts on merit. Moreover, corruption raises the risk premium on investments, leading to higher interest rates and lower access to credit. Building sustainable GDP growth on an unstable and unjust foundation becomes impossible.

“Transparency improves resource allocation, strengthens investor confidence, and enables better monitoring of public expenditure.”

Public finances and the corruption drain

Corruption diminishes the tax base and limits government revenue. When public officials syphon funds or collude in illicit financial flows, governments have limited fiscal space to invest in infrastructure, education, healthcare, or industrial policy—all vital components of GDP expansion.

According to the United Nations Economic Commission for Africa (UNECA), illicit financial flows from Africa exceed $50 billion annually, much of which is facilitated by public and private corruption. Reclaiming and repurposing these funds could be transformative for development.

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The growth dividend of transparency and accountability

Countries that have taken bold steps to tackle corruption have seen tangible economic dividends. Rwanda’s zero-tolerance policy has attracted international investors and fostered a culture of efficiency in governance. Botswana’s transparent public sector and strong institutions have earned it consistent economic growth and global respect.

Transparency improves resource allocation, strengthens investor confidence, and enables better monitoring of public expenditure. It encourages competition, improves service delivery, and restores trust in institutions, laying the foundation for sustainable economic transformation.

Strategic recommendations: Fighting corruption to accelerate growth

1. Strengthen institutions and rule of law: Independent anti-corruption agencies, judicial integrity, and legislative oversight must be fortified to investigate, prosecute, and prevent corruption consistently.

2. Leverage digital governance: E-procurement, e-payments, and open budgeting platforms reduce human discretion, minimise fraud, and enhance transparency in public finance.

3. Promote whistleblower protection and civic engagement: Citizens must be empowered to speak out against corruption without fear. Civil society and media play a vital role in accountability.

4. Enforce procurement and audit reforms: Transparent tendering, public access to contract details, and regular audits are key to preventing misuse of public funds.

5. Address political finance and conflict of interest: Campaign finance laws and declarations of assets by public officials must be enforced to prevent abuse of power for personal gain.

6. Regional and continental collaboration: Corruption often transcends borders. African nations must collaborate to track illicit flows, repatriate stolen assets, and enforce continental anti-corruption treaties.

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Conclusion: Clean governance, strong economies

Suppose Africa is serious about achieving its Agenda 2063 goals and meeting the aspirations of the African Continental Free Trade Area (AfCFTA). In that case, corruption cannot be tolerated—it must be systematically dismantled.

Anti-corruption is not a sideshow—it is economic policy. It is fundamental for macroeconomic stability, inclusive growth, and poverty reduction. Every dollar lost to corruption is a dollar stolen from GDP growth. Conversely, every act of transparency is a step toward prosperity.

Africa must choose the harder but higher path—one where integrity, accountability, and justice are values and growth strategies. Because clean governance is not just good ethics—it is good economics.

Prof. Lere Baale is a transformation strategist and leadership expert who advocates for sustainable development across Africa’s public and private sectors. He is the CEO of Business School Netherlands International in Nigeria and a recognised thought leader in systems innovation, governance, and inclusive growth.