Cape Town - African countries need to pass laws compelling foreign mining companies to be more honest in their dealings on the continent, former UN secretary-general Kofi Annan said on Friday.
Launching the Africa Progress Report in Cape Town on the final day of the World Economic Forum, he said revenue from mining was not contributing towards reducing the gap between Africa's rich and poor.
Annan said some companies were using “unethical tax avoidance, transfer pricing and anonymous company ownership to maximise their profits”.
Such revenue was quickly moved out of the continent through tax evasion, corruption and weak governance.
The report - compiled by the African Progress Panel (APP), which Annan chairs - highlights concerns about “foreign investors extensive use of offshore companies, shell companies and offshore jurisdictions”.