Debt in Africa

Debate between Martin Vickers and Claudia Webbe

Tuesday 21st November 2023 Westminster Hall

[Claudia Webbe (Leicester East) (Ind)]

It is a pleasure to serve under your chairship, Mr Vickers. I congratulate the hon. Member for Slough (Mr Dhesi) on securing this important debate. It could not have come at a more timely moment.

The debt that Africa owes is equivalent to something like 24% of its gross domestic product. As of 2022, Africa’s debt burden was around $1.8 trillion. As an absolute number, that does not appear as high as some—Germany’s debt is larger—but compared with the living standards and available wealth of the people and their Governments, it is crippling. That debt has been placed on the backs of African nations as a legacy of centuries of colonialism and exploitation—exploitation that continues today, as western corporations make billions every year from the natural resources of the continent, particularly in the form of mineral extraction.

To demonstrate the extent to which western mineral exploitation damages Africa, out of all African nations, only Botswana’s Government retain ownership and control of their own country’s considerable mineral wealth. As a result, it has by far the lowest national debt as a percentage of its gross domestic product—barely a quarter of neighbouring South Africa’s, and even its closest rivals have double its debt. Botswana has stated that its aim in retaining control of its mineral resources is to maximise the economic benefit for its people—and it works.

For centuries, Africa was pillaged of its wealth: timber, oil, diamonds, and, above all, its people. Western nations grew rich on the backs of the slaves that they took and the exploitation of those who remained in Africa, and then from their colonisation of those same nations. Rich countries and their corporations continue to steal by deceit, by intimidation, and by fomenting unrest and division, particularly to obtain the rare earth minerals that drive our technological society and bloat the bank accounts of the companies that make and use that technology.

Africa is not poor; the west has stolen its wealth and is still doing so today. Aid and loans to Africa, along with personal remittances from Africans working abroad, are worth far less than what is taken out of Africa. That difference is at least $40 billion annually, making aid and loans little more than camouflage for neo-colonial exploitation. That piles debt on to the people of Africa, which drains away their ability to build themselves better economies and a better standard of living. And, as usual, the money going out of Africa is going into corporate profits, while the cost of loans and aid is borne by taxpayers.

The reparations that the UK and other nations owe to the people of Africa—and the other countries exploited for so long—is a huge debt, both moral and financial. Cancelling Africa’s debt would be one small step towards repaying what was stolen and making restitutions for centuries of damage done. Yet Governments will not acknowledge the debt that they owe to Africa, let alone put measures in place to do something about it or to claw back some of the obscene corporate and personal fortunes dug out of Africa and its people. It is high time that that situation changed.

[Martin Vickers (in the Chair)]

I call Sir Tony Lloyd.