In broad terms, corruption is the abuse of public office for private gain. It arises both in political and bureaucratic office and can be petty or grand, organized or disorganized. Systemic corruption in Africa typically occurs in public markets, the management of public companies, fiscal administration, customs, the justice system, and often within the military. There is also widespread petty corruption in the civil service, which most directly affects the public by forcing them to pay for government services that would otherwise be free. Whereas corruption in the private sector undermines economic growth but may not affect political development, public corruption has a destabilizing effect on both political and economic systems.
Corruption undermines the foundations of sustainable development in all developing countries.
Economically, corruption leads to the inefficient allocation of resources, raises the cost of investment, decreases investor confidence, promotes inequalities and inefficiencies in the private sector, raises the cost and decreases the quality of public-sector projects and services. The political consequences of widespread corruption, while less quantifiable, are no less real. Corruption contributes to a loss of confidence in the government and a general non-compliance with laws, undermines the legitimacy of elected officials and democratic values, diminishes the effectiveness of public policy, and impairs the power of public institutions. Indeed, political fallout from corruption creates a vicious cycle of more corruption, instability, weak institutions, and even more corruption. The economic and political costs imposed by corruption fall heavily on African countries, already burdened by poverty, debt, disease, illiteracy and political and economic instability.