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Submitted by Web Master on 17 April 2025

A radio discussion broadcast live by Point FM in Dodoma has brought attention to the challenge of illicit financial flows (IFFs) in Tanzania. The conversation featured three voices from the media and civil society: Ephrahim Bahemu, Business Editor at Mwananchi Communications Ltd; Grace Melleor, a journalist with Star TV (Sahara Communications); and Israel Ilunde, Executive Director of Youth Partnership Countrywide (YPC) and Chairperson of the Policy Forum Board.

The panellists were speaking in the context of a recent training programme facilitated by Policy Forum in collaboration with the Thomson Reuters Foundation, aimed at strengthening capacity around Illicit Financial Flows. They described IFFs as funds leaving the country through illegal or unethical channels such as tax evasion, corruption, trade misinvoicing, and smuggling. These flows, they said, erode the country’s economic base and limit the government’s ability to invest in essential services such as healthcare, education, and infrastructure.

Grace Melleor pointed to restrictive laws and bureaucratic hurdles that hinder access to vital information as one of the core challenges facing journalists working on IFF-related stories. She said the lack of transparency, coupled with insufficient training in financial reporting, makes it difficult for many journalists to investigate such complex issues effectively. She also highlighted the need for more journalists to develop expertise in business and economic reporting, arguing that IFFs require a deeper understanding of financial systems and regulations.

Ephrahim Bahemu added that the consequences of IFFs are felt directly by ordinary citizens. He said reduced tax collection, caused in part by illicit flows, forces the government to increase taxes or resort to more borrowing, both of which place a heavier burden on the public. He cited cases where multinational companies deliberately inflate operational costs to lower their tax liability, depriving the country of much-needed revenue. Bahemu also called for more investment in equipping journalists with the tools and knowledge needed to analyse financial documents, follow global economic trends, and report accurately on these issues. He noted that IFFs remain a relatively new topic for many journalists in Tanzania and urged both the media and civil society to step up efforts in training and collaboration.

Israel Ilunde, representing the civil society perspective, said organisations such as Policy Forum have been instrumental in raising public awareness and pushing for systemic reforms. He explained that efforts have included engaging policy experts, submitting reform proposals, and creating platforms for dialogue between the public and government institutions. However, he warned that greater coordination is still needed. Ilunde also said that reducing IFFs could help limit the country’s borrowing, noting that Tanzania’s national debt now exceeds TSh 90 trillion. He called for improved governance, stronger oversight of natural resources, and the adoption of international best practices in legislation to close existing loopholes.

Ilunde urged citizens to play a more active role in tackling the issue by reporting corruption and financial misconduct whenever they see signs of it. He said laws such as the Whistleblower Protection Act were put in place to protect those who come forward, and that silence in the face of IFFs would only perpetuate the problem. “We must foster patriotism, reject corruption, and demand accountability,” he said, adding that public trust can only grow where systems are just and inclusive.

Melleor concluded by encouraging her fellow journalists to embrace constructive investigative reporting that not only uncovers problems but also contributes to solutions. “We need to tell stories that matter, stories that spark change,” she said.