AfDB, ESAAMLG Launch $5.2M Project to Tackle Money Laundering, Terror Financing

The “Regional Capacity Development Project for ESAAMLG on Anti-Money Laundering and Combatting the Financing of Terrorism” was officially unveiled on 25 July 2025, in Dar es Salaam, Tanzania.

In a major move to bolster financial security and governance across Eastern and Southern Africa, the African Development Bank Group (AfDB) and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) have launched a new three-year regional project aimed at strengthening the fight against money laundering and terrorism financing. The “Regional Capacity Development Project for ESAAMLG on Anti-Money Laundering and Combatting the Financing of Terrorism” was officially unveiled on 25 July 2025, in Dar es Salaam, Tanzania.

The initiative is backed by a $5.2 million grant from the African Development Bank’s Transition Support Facility (TSF Pillar III) and will primarily benefit five countries undergoing institutional transitions—Burundi, Eritrea, Madagascar, Mozambique, and South Sudan. These nations face heightened risks related to illicit financial flows (IFFs), weak institutional capacity, and systemic vulnerabilities that hinder effective governance and regional security.

High-Level Commitment to Regional Financial Security

The launch ceremony was attended by senior officials from both institutions, including:

• Fikile Zitha, Executive Secretary of ESAAMLG

• Abdoulaye Coulibaly, Director of Governance & Economic Reforms at AfDB

• Patricia Laverly, Tanzania Country Manager for the AfDB

The event also welcomed senior representatives from the five beneficiary countries, Tanzanian government officials, and development partners, reflecting the multi-stakeholder nature of the project and its regional significance.

“This project reflects our firm commitment to supporting the region’s efforts to establish effective systems to combat financial crimes. It aligns closely with our strategy for economic governance and our recently launched Action Plan on Anti-Money Laundering and Illicit Financial Flows,” said Abdoulaye Coulibaly.

Objectives: Building Capacity, Strengthening Institutions

The project’s primary aim is to strengthen the anti-money laundering (AML) and combatting the financing of terrorism (CFT) regimes across ESAAMLG member states, particularly those in fragile or transitional settings. Core activities will include:

• Capacity building and technical training for government officials, regulatory agencies, and financial intelligence units

• Support for compliance with international AML/CFT standards, including those established by the Financial Action Task Force (FATF)

• Institutional development, focusing on governance reforms, policy harmonization, and cross-border cooperation

• Support for ESAAMLG’s 3rd Round of Mutual Evaluation, which reviews members’ compliance with FATF standards

The project will be implemented by the ESAAMLG Secretariat and is expected to contribute to long-term regional stability, improved investor confidence, and enhanced economic governance.

A Strategic Fit for AfDB’s Governance Agenda

The initiative is deeply embedded in the AfDB’s broader operational and strategic frameworks. It aligns with the:

• AfDB Policy on the Prevention of Illicit Financial Flows

• Bank Group Strategy for Economic Governance in Africa

• Bank Group Action Plan for Anti-Money Laundering and Combatting Illicit Financial Flows (2024–2026), launched in February 2025

As part of its commitment, the AfDB supports not only ESAAMLG but also other FATF-style regional bodies such as GIABA (West Africa) and GABAC (Central Africa), through a range of interventions including program-based operations and institutional support mechanisms.

“Our collaboration with ESAAMLG is a reflection of our shared goals—to ensure that countries have the institutional strength to detect, deter, and prosecute financial crimes,” Coulibaly added.

Strengthening Regional and Global Collaboration

Fikile Zitha, Executive Secretary of ESAAMLG, praised the initiative, noting its timely support as the organization embarks on its 3rd Round of Mutual Evaluation, a critical process for assessing the robustness of member countries’ AML/CFT frameworks.

“The African Development Bank’s support is vital at this stage, as it enables us to assist our member countries in meeting international standards while also tailoring solutions to regional realities,” Zitha said.

In her remarks, Patricia Laverly, AfDB’s Country Manager for Tanzania, emphasized the value of partnership in building collective resilience to financial threats, calling the initiative a key pillar in sustainable economic development across the region.

ESAAMLG and AfDB: A Longstanding Collaboration

ESAAMLG is a FATF-style regional body that plays a pivotal role in harmonizing AML/CFT efforts among 18 Eastern and Southern African countries. It provides a platform for policy dialogue, peer review, and technical assistance.

The AfDB, while not a full member, holds observer status in ESAAMLG and contributes actively to its strategic planning and resource mobilization. The Bank also acts as an observer in the global FATF, signaling its growing influence in shaping international norms around financial integrity.

Moving Forward: Towards Safer, More Transparent Economies

The new regional capacity development project is expected to significantly strengthen the institutional frameworks of the five beneficiary countries, enabling them to better manage risks, attract investment, and enhance the transparency of their financial systems.

By addressing systemic vulnerabilities and fostering cross-border collaboration, the initiative serves as a critical enabler of sustainable development, peacebuilding, and economic integration across the Eastern and Southern African region.