Joy for Africa's debt write-off
2005-06-13 08:06
Johannesburg - African nations on Sunday saluted an agreement by the world's most industrial nations to write off debt owed by 18 of the world's poorest countries, but asked for "greater movement" on trade and agriculture to access world markets.
"It will go a long way towards the regeneration of the continent," said President Thabo Mbeki's spokesperson Bheki Khumalo.
The announcement of the $40bn debt write-off by British chancellor of the exchequer Gordon Brown came after a two-day meeting of the Group of Eight's (G8) financial ministers in London.
"The write-off is one of the key demands of the New Partnership for Africa's Development(Nepad)," said Khumalo.
Nepad aims to revitalise the continent's ailing economy by attracting private investors with progress in conflict resolution and improved transparency.
A feeling of satisfaction
Mozambican Prime Minister Luisa Diogo, whose country is one of 14 in Africa to benefit from the deal, said: "When we have external debt, it compromises our entire state and institutions."
Emerging from 16 years of brutal civil war, Mozambique is one of Africa's poorest countries. More than half of its 17 million population living on less than $1 per day.
Its government in 2002 launched a poverty reduction programme which allowed it to become one of the first countries to avail itself of debt waivers under the Heavily Indebted Poor Countries (HIPC) initiative of the International Monetary Fund (IMF) and the World Bank.
Request to scrap farm subsidies
Khumalo said:"We need to move on issues such as a fairer trade regime and that of agricultural subsidies", which are still biased in favour of the northern hemisphere.
African nations demanded the West scrap its farm export subsidies before a crucial World Trade Organisation (WTO) meeting that will shape the future of the global trading system.
Countries on the continent, around 40% of whose total exports are agricultural, have long demanded that the European Union (EU) and United States (US) do away with farm subsidies in order to allow them fair trade opportunities.
Analysts in Malawi, however, bemoaned the fact that it did not make it onto the list.
Malawi's new President Bingu wa Mutharika has launched an intensive drive against corruption since being voted into power last year.
The IMF and donor countries suspended more than $75m in aid in 2002 due to concerns over corruption and overspending during the rule of former president Bakili Muluzi.
Mali meanwhile said it was pleased with the G8 ministers' decision but insisted that the write-off must not lead to a cut in development aid for the country.
Economy and finance minister Aboubacar Traore said: "The G8 decision is all the more important for Mali as the debt owed to World Bank, the International Monetary Fund and the African Development Bank makes up about 60% of its multilateral debt, or €1.589bn, which will be written off."