Tax avoidance costing Africa billions report of Oxfam

*headshaking* this is alot of money in the hands of few! A recent global inequality report released by Oxfam confirms new findings on the growing gap between the rich and poor. Around 16 African billionaires live amongst 350 million people in poverty in the sub-Saharan region of the continent. The report also confirmed that the 62 richest people in the world have more money combined than the poorest 3.6 billion people.

“Power and privilege are being used to rig the system to increase the gap between the richest and the rest of us to levels we have not seen before,” said Raymond C. Offenheiser, President of Oxfam America. “Far from trickling down, income and wealth are instead being pulled upwards at an alarming rate.” Hardworking people at the bottom of the income curve don’t make enough to put food on the table or buy medicine when their kids get sick, much less money to buy a home, start a business or save for the future. And so the engine of economic growth breaks down. A year ago, Oxfam predicted that the 1% would soon own more than the rest of us, a prediction that came true even before 2015 ended. BBC Africa's host Akwasi Sarpong interviewed Oxfam's executive director, Winnie Byanyima. Very interesting! Tax havens are at the core of the global system that allows large corporations and wealthy individuals to avoid paying their fair share, depriving governments, rich and poor, of the resources they need to provide vital public services and tackle rising inequality.

Globally, it is estimated that a total of $7.6 trillion of personal wealth sits offshore. If tax would be paid on the income that this wealth generates, an extra $190 billion would be available to governments every year. Such tax revenues could pay for public services, infrastructure, regulatory bodies, welfare systems and other goods and services that keep countries running. In developing countries in particular, where there is an even bigger need for strengthening health and education services for the hundreds of millions of people who still live in extreme poverty, revenues from taxes could make such a difference. But when money is hidden in tax havens instead, this can work in reverse, shifting the burden on the poorest people.