The IMF Should Convert African Debts Into Infrastructure says Lula

August 29, 2023 - On Tuesday, Brazilian President Lula da Silva once again pointed out that the International Monetary Fund (IMF) should transform African debts into infrastructure works so that African countries can grow and pay their obligations later.

"Africa has a lot of poverty. The problem is that almost all countries owe a lot to the IMF and the amount of interest they pay prevents them from investing in anything else," he said.

Nevertheless, African countries have great potential for economic growth, Lula added, noting that they cannot take advantage of that possibility due to the enormous debt burden.

Currently, the debt of African countries exceeds US$800 billion, so almost all their income has to be used to pay debt interest.

Debts to World Bank & IMF are 70% of debts in #Africa. The US is their largest shareholder.

The IMF (USA) demands political changes be made for loans, coercively governing African nations.#China practices non-interference & offers low interest loans without strings attached. pic.twitter.com/Lx6g2cdSS2

— Jason Smith - 上官杰文 (@ShangguanJiewen) May 13, 2023

"That is why I proposed that the rich countries transform the IMF debt into infrastructure works so that African countries can start to grow and can pay off their debts later. We must give them that opportunity", said Lula.

The Workers' Party leader recalled that Brazil transformed the desert territories of the Cerrado into one of the world's largest granaries through state-of-the-art agricultural technologies, which his country could share with Africa.

"The African savannah is very similar to the Cerrado and can be turned into a food production pump not only for Africa but for the whole world," Lula said, stressing that the African productive potential deserves to be supported with foreign investment.

"Africa is a place where everything has to be done and that is why I am obsessed with working for that continent", the Brazilian president stressed.

#FromTheSouth News Bits | Brazilian President Lula Da Silva arrives in South Africa for the BRICS summit. pic.twitter.com/qVhV2kVLXr

— teleSUR English (@telesurenglish) August 22, 2023