A recent academic study has revealed that financial offshore activities related to Africa are increasingly shifting towards Dubai, Singapore, and Hong Kong. This fundamental change could complicate the efforts of regulatory authorities and policymakers in tracking cross-border financial flows.
Conducted by the University of Oxford in collaboration with the Global Public Policy Institute in Berlin, the research suggests that these three centers should be considered collectively as part of a broader rebalancing in the global offshore financial system.
The authors indicate that Africa’s offshore connections have historically been concentrated in Western jurisdictions; however, there has been a significant diversification over the past decade, influenced by broader changes in the global financial landscape and the evolving trade relationships of the continent.
The study highlights estimates from the United Nations, which suggest that approximately $88.6 billion annually leaves Africa through what is referred to as “capital flight,” with offshore structures playing a role in channeling some of these funds.
While Dubai’s central role in these networks has been widely discussed, the researchers note that Singapore and Hong Kong have received less scrutiny compared to Dubai, despite their growing significance in this context.
The paper emphasizes Dubai’s strategic importance as a hub for company registration and private wealth activities, as well as its role as a regional center that supports trade and investment across Africa.