Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
On the other hand, under invoicing of oil exports in Nigeria to the United States was worth US$69 billion (Sh.7 trillion) equivalent to 24.9 percent of all oil exports to the United States/UNCTAD

Kenya

UNCTAD warns export earnings hurt by under invoicing

On the other hand, under invoicing of oil exports in Nigeria to the United States was worth US$69 billion (Sh.7 trillion) equivalent to 24.9 percent of all oil exports to the United States/UNCTAD

On the other hand, under invoicing of oil exports in Nigeria to the United States was worth US$69 billion (Sh.7 trillion) equivalent to 24.9 percent of all oil exports to the United States/UNCTAD

NAIROBI, Kenya, Jul 19 – Trade misinvoicing is making some countries lose up to 67 percent of commodity exports earnings, a new study by United Nations Conference on Trade and Development shows.

For instance, under invoicing of gold exports from South Africa amounted to US$78.2 billion (Sh7.9 Trillion) between 2000 and 2014, while it under invoiced its iron ore exports to China whose worth was US$3 billion (Sh304.3 billion).

On the other hand, under invoicing of oil exports in Nigeria to the United States was worth US$69 billion (Sh.7 trillion) equivalent to 24.9 percent of all oil exports to the United States.

UNCTAD Secretary General Mukhisa Kituyi while launching the study said that trade misinvoicing is thought to be one of the largest drivers of illicit financial flows from developing countries.

“Countries are losing valuable foreign exchange earnings, taxes and income that might otherwise be spent on development,” he added.

Other countries to be caught up in the misinvoicing bandwagon include Zambia, Chile and Cote d’Ivoire.

“Between 1995 and 2014, Zambia recorded $28.9 billion (Sh2.9 trillion) in copper exports to Switzerland which is more than half of all its copper exports, yet these did not appear in Switzerland’s books. In Chile’s case between 1990 and 2014, the country recorded $16 billion in copper exports to the Netherlands, but these exports did not also appear in Netherlands’ books,” read the study.

Kituyi says that the matter is made worse by the fact that some developing countries depend on just a handful of commodities for their health and education budgets.

He has called out to countries and companies seeking to protect their reputation to come clean and work with UNCTAD on solving the problem.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...