Oxfam criticises World Bank over tax-haven links of multinationals

Oxfam has criticised the World Bank's development lending arm, the International Finance Corporation (IFC), for getting involved in projects with multinationals that use tax havens.

The charity has produced a report that claims 51 of the 68 companies lent money by the IFC last year for projects in sub-Saharan Africa use tax havens.

The report, The IFC and Tax Havens, also claims that “in 2015, 25 per cent of the IFC investment projects in sub-Saharan Africa have directly been allocated to a company incorporated in a tax haven”.

The report does not name any specific multinationals that have invested in the region using IFC cash.

It also does not provide details about tax haven-use. But it says an analysis by Oxfam shows 81 per cent of the investment by the IFC in the region last year was in association with multinationals that use tax havens.

Mauritius is the most common tax haven used by multinationals that invest in sub-Saharan Africa, says Oxfam.

The report cites UN figures that estimate “developing countries lose at least $100 billion a year because of corporate tax-dodging by [multinationals].”

The IFC said the Oxfam report is “flawed”.