World Bank takes millions of dollars from southern Africa as humanitarian crisis worsens

The six countries of southern Africa are facing their worst food crisis in over a decade. The UN World Food Programme has launched an emergency appeal for donations from wealthy countries. The Social Justice Committee is dismayed to note that the World Bank and other creditors, on the other hand, continue to take millions of dollars out of countries affected.

Countries of southern Africa pay more than US$150 million a year to the World Bank. Of this, the World Bank collects more than $60 million in interest payments. Despite the current crisis, in which 10 million people are at risk of starvation, the payments continue.

Debt payments in millions of US dollars:

Country	Total Debt	Annual Debt Payments to the World Bank Group	Interest payments	Principal payments
Malawi	2,454	36	13	23
Zambia	5,607	27	15	12
Lesotho	741	11	5	6
Zimbabwe	3,918	73	27	46
Swaziland	262	2	1	1
Mozambique	7,136	9	5	4

(For year 2000, the most recent year for which figures are available. These are typical of annual payments for these countries.)

"The World Bank refuses to consider a moratorium on debt payments for countries in crisis, and as a primary creditor the Bank demands that it get paid first and in full. This is loan shark behaviour, and it has to stop," said Derek MacCuish, economic justice coordinator for the Social Justice Committee.

About five million people are receiving emergency assistance from the World Food Programme. This is expected to more than double in the coming months as food supplies run out. Canada has contributed US$1 Million to the WFP efforts in southern Africa.