World Bank head praises deal to cancel debt
Mr Wolfowitz spoke to reporters soon after arriving in the Nigerian capital, Abuja, on the first leg of a four-nation Africa tour and said he was hopeful debt relief was also on the way for Africa’s biggest debtor, Nigeria.
“I’m really delighted ... because I think it’s a very important, successful outcome,” Mr Wolfowitz said.
The decision was also welcomed by African governments.
“We are receiving the news with a lot of hope for our people,” said the governor of Tanzania’s central bank, Daudi Balali.
“We can expand health and education services with this relief. We will also be able to expand our infrastructure. That’s great news for us. It will be good for our programs including education, health and poverty-eradication,” said Ugandan Information Minister James Nsaba Buturo.
“We greatly appreciate the initiative. It is a challenge for us to use the money we have been paying [in] debts to be now used to better the lives of our people.”
Benin Minister of State for Planning and Development Zul Kifl Salami hailed it as “an excellent decision, an historic decision”.
Western leaders had voiced concerns African leaders might use the debt relief to line their pockets but a British coalition of charities, Make Poverty History, said history has shown those leaders will use debt relief to help their people.
The coalition cites Benin, where 54% of money saved thanks to partial debt relief has been spent on health.
In Tanzania, the end of fees led to a 66% increase in primary school attendance.
Mozambique was able to offer all children free immunisation and 2.2 million people gained access to clean water under the Uganda initiative paid for with funds freed up from reduced debt servicing.
Activists have long argued many African countries repaid the principal on loans years ago but remain saddled with interest.
€47.77 billion: Africa’s total external debt.
18: the number of countries whose debts were written off over the weekend.
€33bn: the value of the deal.
9: the number of countries to qualify for debt relief within the next 18 months.
€1.2bn: the combined amount those countries will save in debt repayments every year.
€570m-€790m: Britain’s contribution over the next 10 years.
€1bn-€1.4bn: US contribution over the same period.
20,000: the number of skilled workers Africa loses to developed countries a year.
€62bn: the extra needed each year to put the Commission for Africa plan fully into action.
€20bn: annual funding to come from Africa.
€0.83: the daily income of half of Africa’s people.
30: the number of African democracies, up from three in 1973.
46: life expectancy of people in Africa. In India it is 63.
25%: the amount added to the average cost of government procurement because of corruption.
70%: of Africa’s food is produced by women.
50%: of the continent’s population is under the age of 17.
42%: of Africa’s population do not have access to safe water.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
