Transparency International Zimbabwe (TIZ) said that the country is losing up to US$2 billion annually due to financial leakages, primarily driven by corruption and bribery of customs officials at borders.

In its latest report, TIZ noted that the siphoned funds could have been channelled toward national development. Reads the report:

Financial leakages at Zimbabwe’s ports of entry are estimated to cost the country between US$1.8bn and US$2bn annually.

These leakages occur primarily due to corrupt practices, including bribery among customs officials, which diverts funds that could be used for national development.

Christopher Mugaga, CEO of the Zimbabwe National Chamber of Commerce (ZNCC), told Business Times that fiscal losses linked to corruption are estimated to range between US$1.2 billion and US$1.5 billion. Said Mugaga:

These losses arise from tender inflation, tax evasion, and inefficient use of public resources, which severely impact the government’s financial capacity.

Former Finance Minister Tendai Biti has suggested that Zimbabwe could be losing over US$4 billion annually through smuggling and other forms of illicit trade. He said:

We are losing US$1bn from tobacco smuggling, US$1bn from gold smuggling, and we are now possibly losing US$2bn on lithium alone.

What we are losing in terms of illicit financial flows is more than what we get from diaspora remittances, which stand at US$1bn, and it’s certainly more than what we receive in foreign aid and direct investment—around US$200bn.

More: Business Times