Monday 1 August 2022
Anglican Bishops from around the world today united to call on the UK Government to lead the world in compelling lenders to cancel debts that are plunging communities in low income countries into hunger and poverty.
Bishops at their Lambeth Conference in a symbolic act, ripped up a cheque representing the debt payments that lower income countries like Zambia are paying to private lenders and banks in the UK and USA.
Zambia is the first country to seek debt restructuring under the G20’s new Common Framework, launched in 2020. The country is negotiating a debt restructuring with creditors including the UK-based asset management firm BlackRock. Debt Justice has estimated that BlackRock could make $180 million profit if the debts are paid in full [1].
Rocketing food and fuel prices, in part due to Russia’s invasion of Ukraine, in the context of a continuing pandemic and lack of access to vaccines, are intensifying the debt crisis facing lower income countries.
Archbishop Albert Chama, the Archbishop of the Church of the Province of Central Africa, said: “Zambia is in a debt crisis, with spending on social services falling by over a fifth between 2019 and 2021 alone [2].
“Because of this, ordinary Zambians lose out on healthcare, education and development projects which would give them a fair chance to thrive and build futures, like people in the UK, Europe and the USA.
“For too long, by chasing excess profits on loans, private capital in wealthy countries has put the lives of people in low-income countries in jeopardy. It has to stop now.”
Archbishop Thabo Makgoba, Southern African Provincial Metropolitan and Archbishop of Cape Town, added: “We cannot ignore economic injustices that unfairly disadvantage the world’s poorest communities. These injustices amount to a threat to human dignity.
“I stand with Action for Southern Africa, Debt Justice, Christian Aid and others in condemning the unfair conditions faced by countries in Southern Africa when they need loans”.
Chitra Karve, the Chair Action for Southern Africa, added: “Zambia faces default because private financiers and banks are failing to step up. Together with Anglican church leaders, Christian Aid, Debt Justice, Global Justice Now and CAFOD, ACTSA demands that loan agreements must be fair and amended when necessary. Predatory profiteering directly results in lives cut short in Southern Africa.
“It is past time that BlackRock and other private lenders [3] are compelled to negotiate terms for Zambia which do not make excess profits from those already disadvantaged by food, fuel and pandemic crises.”
Photo: l-r
Primus Mark Strange, Scotland; Bishop Vicentia Kgabe, Lesotho; Archbishop Albert Chama, Central Africa; Archbishop John McDowell, All Ireland; Archbishop Andrew John, Wales; Archbishop Thabo Makgoba, Southern Africa. (c) Jess Hurd/Debt Justice
[1] https://debtjustice.org.uk/press-release/blackrock-could-make-110-profit-out-of-zambias-debt-crisis
[3] The total debt owed by the Zambian Government to Western private creditors (so excluding Chinese creditors), is $4.74 billion.
ENDS.
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“The debt burden is increasing poverty in Zambia, preventing us from tackling and recovering from the pandemic and dealing with crises caused by rich countries such as climate change. Private lenders and other governments lent to Zambia at high interest rates and at high risk. Lenders need to accept they lent recklessly and agree a large-scale debt cancellation to allow the people of Zambia to tackle multiple external crises.”
Alex Muyebe, Zambian Civil Society Debt Alliance
Holding unfair and unequal practices in Southern Africa up to public scrutiny has always been part of ACTSA’s mission, and we feel this is especially relevant in a time where global inequality in rising. As a long-time ally, ACTSA supports the Zambian people by campaigning to #CancelTheDebt.
Please stand with us and our partners to put pressure on BlackRock and other investment banks by signing this petition today to end Zambia’s unfair debt burden.
Thank you!