Global anti-money laundering and terrorism financing watchdog, Financial Action Task Force (FATF), has gray listed Africa's leading economies, South Africa and Nigeria, which is expected to cause far-reaching setbacks to the two countries' economic growth. Gray listing, which precedes blacklisting, means that a country is under increased monitoring and must address concerns such as money laundering and terrorism financing. Gray listing exposes the two countries to increased scrutiny by investors and financial institutions across the world, reducing investment and making it difficult for them to acquire lending or investment. In South Africa, analysts are forecasting a recession this year, largely caused by endless power blackouts that could cost the economy $13 billion this year alone. Gray listing is expected to spark a hike in the cost of doing business in the country, difficulties in sending money offshore, and transacting with international banks and financial institutions. Nigeria, which is currently going through its presidential elections, faces an economic crisis caused by shortages of cash, and fears are rife that the transition could escalate the crisis. The move by the anti-money laundering watchdog means South Africa and Nigeria have now joined other African countries like South Sudan, the Democratic Republic of Congo, Mozambique, Uganda, Tanzania, Mali, Senegal, and Burkina Faso.

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