Africa mountain of debt is enormous. Corruption and mismanagement are a basic, but activists warn of a fast-Recrimination. You say: the foreign carries a great responsibility.
Mozambique’s population is white, like a debt crisis feels like. Many teachers get no more money, students have to sit on the floor. “In our hospitals, the Doctors say to the patient: it’s not worth It, that you’re here. We have no drugs,” accuses the human rights activist Eufrigina dos Reis.
Money for education or health, Mozambique. In Mozambique, the mountain of debt in 2017 amounted to 102 percent of gross domestic product. The International monetary Fund holds the half in developing countries is dangerous. Danger threatens but not only there. Last year, the debt burden was in Africa for almost 46 percent of the economic output. Almost half of all countries on the continent are at risk. “We are very Worried,” says Julius he stood by the “debt-to-network Uganda”, an Alliance of local organisations.
Billion to Parliament
But who is to blame for the chaotic situation? In Mozambique, the answer at first glance is pretty simple. State-owned companies have borrowed with the approval of the government – almost two billion euros in the case of large international banks. With the money, among other things, fishing should be constructed in a fleet, but much of it is gone. Neither Parliament nor the Public knew. But that is only part of the truth: Because in addition, Mozambique’s push for more debt, which, among other things, the infrastructure should be developed.
The situation in Mozambique hospitals is bad
“Even abroad, plays a big role,” said Fanwell Bokosi, head of the African debt network and AFRODAD. Because much of the money borrowed by African governments legally to private investors. “After the financial crisis of 2008, interest rates in the West were low, and many people did not know how they should invest in. On the other side of a continent, where the commodity prices shot up, the political environment was mostly stable and the demand for infrastructure is huge.” Africa was attractive: More than twelve African States have placed according to AFRODAD in the last few years, government bonds in the capital markets. Last year they came to 27 billion US-dollars.
But the money of the investors back with interest. The rise, at the same time, the raw materials fall in many places prices. More and more States are sitting in the case. Bokosi believes that investors need to factor in such risks would be: “African government bonds were not attractive, that the African countries had managed their debts better, but the fact that there were no other lucrative markets for investors.”
Many governments have taken on debt in order to up their infrastructure
More risk due to the “Compact with Africa”?
But also public donors have made from the point of view of the activists of the error. “It should only give loans to countries that are well governed,” says activist dos Reis from Mozambique. “A country has a Parliament, a civil society and the courts. If the government does not respect these institutions, will not benefit a credit is also much. Her colleague, he stood from Uganda, sees it similarly: “countries like Germany should not negotiate with our government behind closed doors. We citizens need to know what is happening so we can shape the developments.”
Germany, in particular, have the defenders, particularly in the focus. With the “Compact with Africa” the Federal government is to strengthen economic relations with Africa. At the end of October, Chancellor Merkel invited eleven African heads of state to Berlin. By the Compact, especially private investment in Africa should be strengthened. As a result, the infrastructure should be developed – roads, bridges or railway lines are designed to boost the local economy. The Federal government praises the project, activists like Fanwell Bokosi are skeptical: “The infrastructure projects are likely to be as public-private partnerships implemented,” he says. “We know from Europe, that these projects often go wrong. For losses, the state needs to stand up straight. So, if these projects fail, will have to take a lot of governments back loans to their financial responsibility.”