South African opposition leader, Julius Malema, has cautioned African nations against loans from international financial institutions like the World Bank and the International Monetary Fund (IMF).
Malema said this on Sunday in Enugu as a keynote speaker during the opening ceremony of the Nigeria Bar Association (NBA) Annual General Conference.
Malema described these loans as a “debt trap” that can undermine the continent’s future, saying, ”Such loan, a debt trap, can mortgage the future of the continent”.
Malema’s comments come amid growing concerns over rising debts by African nations, including Nigeria and Ethiopia.
He also emphasised the need for African countries to regulate these loans to avoid mortgaging their future.
The President of South Africa’s Economic Freedom Fighters (EFF) suggested that African governments should seek parliamentary approval before sourcing foreign loans and establish transparency regarding loan conditions.
He said the would help to prevent unchecked borrowing and ensure accountability.
His wurds: “The debt trap of Africa to our foreign colonisers must be stopped, and that begins by regulating these loans that our leaders commit future generations to, because they will not be there when the colonisers come to collect.”
Malema also called for African nations to industrialise and process their resources on the continent.
He emphasised the need for Nigeria and South Africa to work together to build a self-sufficient Africa.
Malema while calling for African nations to industrialize and process their resources on the continent, also advocated for regulating foreign loans to prevent unchecked borrowing.
The EFF’s proposed bill in South Africa aimed to address the issue of unregulated borrowing and promote fiscal responsibility.
He said, “The Public Finance Management Amendment Bill will in South Africa deal with a problem facing the whole continent, and that is the unregulated borrowing of money by our governments from the World Bank and the International Monetary Fund (IMF).
“This bill, which we have introduced as the EFF, will require that the National Treasury in South Africa first seek approval from Parliament to source foreign loans and establish transparency regarding such loans and their conditionalities,” the EFF leader said.
