How the evolving anti-corruption compliance landscape across Africa is a driving force for economic growth in 2023 and beyond
According to the United Nations, Africa loses over USD 89 billion every year to corruption, tax evasion and other misdeeds, aided by enforcement challenges, predominantly cash-based economies and the prevalence of business sectors that are prone to corruption. These illicit financial losses affect public and private sector players, weakening institutions, eroding consumer and investor trust and destabilising economies.
However, things look set to change as notable activity is reported in anti-corruption enforcement by governments. This is through the enactment of anti-corruption laws, the establishment of dedicated anti-corruption authorities, and greater scrutiny from civil society and the media.
Countries in East Africa have committed to anti-corruption enforcement through international and regional initiatives, including the United Nations Convention Against Corruption (UNCAC). Such commitment is bound to transform the operating environment for public and private businesses, which are called upon to actively work on their corporate integrity and accountability to promote growth and a conducive environment for investment.
Meanwhile, a ‘woke’ culture is gradually sweeping across the region, with people willing to speak up against corruption, even amidst threats to their persons. It is expected that with more enlightenment, societies in Africa will become bolder in the face of corruption, further inspiring the strengthening of compliance authorities.
From a corporate perspective, the increasing exposure and scrutiny of operations and transactions by regulators, the media, civil society and individual whistleblowers are beginning to spur anti-corruption and anti-bribery investments within companies. We are seeing more organisations moving towards zero-tolerance policies regarding corruption while actively pursuing the attainment of corporate cultures that encourage overall integrity.
Trends are also bringing to the fore the position of modern technology in promoting accountability by providing trails of evidence for every decision made. This includes the gradual shift to cashless operations, which brings about elements of traceability in transactions.
For added progress, organisations must now engage in anti-corruption support from local firms like Adili Group. Adili fully understands the operating environment and is vastly experienced in anti-bribery policies and implementation frameworks.
Comprising leading legal experts, the Adili team has advised African multinationals and smaller enterprises on anti-bribery law, the liability of companies and their officers, extra-territoriality issues, and the scope and extent of regulators’ powers of investigation.
The firm has also assisted many companies in complex matters involving corporate fraud, anti-bribery and corruption investigations through plans involving mapping bribery and corruption risks, the development of whistleblowing frameworks, anti-bribery and whistleblowing training for employees, and assistance in legal matters involving the incidence of bribery and corruption. Through such engagements, it has been shown that organisations with a culture of anti-corruption and anti-bribery ultimately secure investor confidence and public trust, two key components of transformative growth.
From a macro-perspective, it is expected that as more organisations pursue professional support in bolstering astute internal structures and processes that leave no tolerance for corruption, the overall operating environment for businesses will be strengthened through levelled playing fields and, in the long-term, stable economies.
