(DAR ES SALAAM) – South Sudan is set to benefit from a new $5.2 million regional initiative aimed at strengthening anti-money laundering and counter terrorism financing systems in five African countries. The three year project was officially launched in Dar es Salaam by the African Development Bank (AfDB) in collaboration with the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). The programme will also benefit Burundi, Eritrea, Mozambique and Madagascar.
The Regional Capacity Development Project on Anti-Money Laundering and Countering the Financing of Terrorism, known as ESCAD-AML, is designed to build long term institutional resilience in countries considered financially and politically fragile. The initiative is funded entirely by the AfDB and targets key weaknesses in national financial oversight systems.
Key components of the project include support for national risk assessments of money laundering and terrorism financing, the development of anti-money laundering strategies, and preparation for international mutual evaluations. It also aims to build the technical and legal capacity of government institutions responsible for enforcing financial crime laws.
Speaking at the launch, AfDB’s Director of Economic Governance and Reforms, Mr Abdoulaye Coulibaly, said the project represents a critical intervention in protecting the continent’s financial systems from abuse. He noted that Africa loses about $587 billion every year through illicit financial flows, which is more than the $578 billion the continent managed to raise in 2023. These figures include tax evasion losses estimated at $270.5 million and over $189 billion in illegal extraction of natural resources such as minerals, fish, and timber.
“These losses amount to roughly 25 percent of Africa’s GDP. The result is weaker states, lower domestic revenues, and major disruption in vital services like healthcare, education and infrastructure,” said Mr Coulibaly.
He pointed out that many African countries, including South Sudan, lack the technical and institutional capacity to fully meet international standards on anti-money laundering and counter financing of terrorism. To address this gap, the AfDB is scaling up support through policy advice, institutional development, and cross-border cooperation.
ESAAMLG’s Executive Secretary, Ms Fikile Zitta, said the programme is a landmark initiative to help participating countries pass upcoming international evaluations, which determine whether a country is following global standards in financial governance. She said the three-year support will involve intense technical assistance, capacity building and interagency coordination.
“This marks a journey towards stronger financial systems across our member countries,” said Ms Zitta. “We must build robust institutions, promote political commitment and ensure long term sustainability of reforms.”
The Deputy Governor of the Bank of Tanzania, Ms Sauda Msemo, who represented the host country at the event, called the project timely and vital. She noted that countries like South Sudan and Mozambique are currently listed on the Financial Action Task Force (FATF) blacklist and face international restrictions. The support will help them align with FATF recommendations and rebuild trust in their financial systems.
She also reflected on Tanzania’s recent reforms after it was flagged in 2022 for weak financial crime oversight. The country responded by strengthening legal systems, reforming supervisory bodies and improving coordination between institutions. These actions led to Tanzania’s removal from the FATF grey list in June 2025.
For South Sudan, participation in the ESCAD-AML project provides an opportunity to improve its standing in global financial networks, boost investor confidence, and prevent the misuse of its financial system for illegal activities. With proper implementation, the project could also help unlock development financing and build resilience across the country’s institutions.
