Staff Writer
The ministry of finance has revealed that coordinated efforts have already resulted in tax recoveries exceeding N$28 million for the state during 2025.
In 2026, a single investigation resulted in the recovery of more than N$45 million, the minister announced.
The ministry released its inaugural estimates of illicit financial flows (IFFs), with the assessment showing that an estimated N$16.7 billion moved illegally or improperly through the country’s economy annually between 2021 and 2022.
The ministry said cabinet had endorsed the publication of the estimates and their submission to the United Nations Statistics Division reporting framework as part of Namibia’s commitment to safeguarding financial system integrity and strengthening domestic resource mobilisation.
Using the United Nations Conference on Trade and Development’s Partner Country Method Plus, the assessment estimated illicit financial flows at about 9% of Namibia’s nominal gross domestic product over the two-year period.
The ministry said the findings further indicated that Namibia lost an estimated N$2.7 billion in tax revenue over the two years.
The ministry said trade misinvoicing was one of the most common channels for illicit financial flows. This can include under- or over-invoicing imports and exports, allowing companies or individuals to move money out of the country, reduce tax liabilities, avoid duties and value-added tax, or improperly claim government incentives.
The assessment was compiled by a 14-agency Technical Working Group chaired by the Bank of Namibia.
The government has been working on estimating illicit financial flows since 2018, with technical assistance from UNCTAD and support from the Namibia Revenue Agency and the ministry of finance, among 13 other government offices, ministries and agencies.
Since 2023, Namibia has strengthened several laws to combat trade-related money laundering and illicit financial flows, including the Financial Intelligence Act, Prevention of Organised Crime Amendment Act, Virtual Assets Act, Payment Systems Management Act and Banking Institutions Act.
Namibia’s Sixth National Development Plan has set a target of reducing illicit financial flows from an estimated N$16.7 billion, representing 9% of nominal GDP, to 5% of GDP by 2030.
The government is pursuing a whole-of-government approach focused on four pillars including policy, legislation and regulation; institutional structures and governance; data management and transparency; and enforcement, prosecution and revenue recovery.
Finance minister Ericah Shafudah said Namibia’s development aspirations depended on the country’s ability to prevent and reduce illicit financial flows.
She said the issue was particularly relevant as Namibia positioned itself as a future exporter of renewable energy, green hydrogen and petroleum products.
