"This paper specifies three asset demand equations in a flow-of-funds framework to underpin the demand for capital flight, domestic money, and foreign debt. The estimation uses data on four groups of African countries over 1970–2010: (1) the entire sample of 39 African countries; (2) South Africa, Algeria, Nigeria, and Egypt (SANE); (3) oil- and natural resource-rich countries; and (4) all countries excluding the SANE countries. The results show that across the four groups the demand for capital flight mimics habit persistence. Moreover, past external debt is positively related to current capital flight, suggesting debt-fueled capital flight and asset complementarity rather than asset substitution. The impact of factors such as inflation and growth on the demand for the three assets is unique to each country group."