Trillions at risk: Need for transparency and accountability in financing development

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OPINION

By Gilbert Sendugwa

Last week, leaders from Governments, the United Nations, Donors, Intergovernmental bodies, Researchers, and Civil society were hosted by the King and people of Spain during the 4th International Conference on Development Finance (FFD4).

The conference addressed critical themes related to Financing for Development. Key issues included public debt and its sustainability, revitalising international development cooperation, mobilising domestic public resources, and enhancing the role of science, technology, and innovation.

Discussions also emphasised the importance of inclusive financing by bringing women and other marginalised groups to the forefront, and the urgent need for climate finance.

A recurring concern was the growing gap between available resources and the escalating development needs. More than $1.3 trillion is required annually to meet global financing for development targets.

While addressing the conference, Mr Matia Kasaija, Uganda’s Minister of Finance, Planning, and Economic Development, reiterated the urgency for developing countries to access innovative private finance sources such as Diaspora bonds, green bonds, Municipal bonds, and Islamic bonds to support Public Infrastructure Development.

He noted that governments lack the technical and financial capacity to access these funds, while private capital is quite costly. He called for technical and financial support to access innovative capital sources and investments to derisk private sources of finance.

The Green Guarantee Group (GGG) initiative illustrates how developing countries can access knowledge, technical support, and financial assistance to bridge existing development gaps.

Co-chaired by Nigeria, with support from Germany, the initiative aims to enhance understanding of guarantee mechanisms and how they can be effectively utilised. The Group has made key recommendations for scaling up the use of guarantees.

However, the success of such initiatives ultimately depends on the strength of national systems, particularly their ability to uphold transparency, inclusion, and accountability.

A notable observation in the GGG discussion was the absence of the African Union and reference to other African countries beyond Nigeria.

Given that most African countries face similar financing for development needs and capacity challenges, the active participation of the African Union Commission in the GGG would help ensure that recommendations reflect the diverse needs of the continent and support uptake in different countries.

While the inadequacy of finance for development is real in Africa, the continent also faces a serious challenge—lack of transparency and accountability in the acquisition and management of public debt. In 2014, the Government of Mozambique lost over $2b in the "tuna bonds hidden debt scandal."

The “illegal secret” loan was arranged by UK-based banks for three Mozambican state-owned companies: Ematum, Proindicus, and MAM.

In Senegal, an audit by the Court of Auditors revealed that the national debt in 2023 was 99.7% of GDP, rather than the previously reported 74.4%, and the budget deficit was over 10%, not 4.9% as earlier claimed.

In Uganda, senior officials in the Ministry of Finance were in 2025 charged in court for debt repayment-related corruption, money laundering, and abuse of office involving over $17m.

Another area needing sunlight in public financial management is tax holidays. In February 2025, Uganda’s Ministry of Finance sought approval to exempt Mr. Donati Kananura from taxes amounting to $750,000 on questionable grounds.

Efforts by the Africa Freedom of Information Centre (AFIC) to access information on the beneficiaries of tax exemptions were denied by both the Ministry and the Uganda Revenue Authority (URA).

Citing confidentiality and privacy concerns, URA declined to release the information. AFIC contests this interpretation of the Access to Information Act and remains confident that its appeals will succeed.

In Kenya, Liberia, and Zimbabwe, AFIC members submitted information requests regarding carbon-related agreements with Blue Carbon. These requests were met with silence. While some appeals succeeded, the respective ministries have yet to comply.

Without transparency and accountability, resources mobilised both domestically and internationally remain at risk of being lost to corruption and inefficiency. African governments must demonstrate a strong commitment to transparency and accountability across the entire financing for development chain.

The writer is the Executive Director, Africa Freedom of Information Centre