Debt in Africa — [Martin Vickers in the Chair]

Ms Webbe highlighted that Africa's debt, equivalent to around 24% of its GDP and amounting to $1.8 trillion in 2022, is crippling compared to living standards and available wealth. She argued that western corporations continue to exploit the continent for natural resources, citing Botswana as an example where Government control over mineral resources leads to lower national debt and better economic benefits.

Ms Anderson highlighted her previous work as a Jubilee 2000 campaigner and the impact of debt cancellation on countries like Zambia. She criticised the lack of UK leadership since 2010, noting that lower-income countries face increasing debt levels, with external debt payments rising by 150% between 2011 and 2023. She called for more focus on debt reduction for fragile states and stressed the need to link climate finance with debt cancellation.

Mr Shannon highlighted the negative impact of the COVID-19 pandemic on Africa's sovereign debt, noting that 22 countries are in debt distress or at high risk. He mentioned that African nations owed £2,758 million to the UK as of August 2022, with Sudan having the highest debt. Shannon emphasised the importance of dialogue and assistance from western countries to help these nations manage their debts without pushing them into further poverty. Mr Shannon intervened to discuss the importance of using economic talents wisely, referencing a parable about stewardship. He suggested that wise use of economic decisions by African countries in 2000 led to growth and urged for continued responsible management. The Member requested a timescale for debt decision-making to help African countries in extreme debt move towards financial stability.

Ms Lyn Brown noted the importance of addressing African countries' debt burdens, highlighting that uncertainty around debt is driving away investment. She mentioned that sub-Saharan Africa's average debt ratio has nearly doubled over the past decade to almost 60%. She called for speedier debt relief talks and questioned the Government's commitment to reforming the global debt system.

Congratulated the hon. Member for Slough on securing the debate and praised the UK Government's new White Paper for its constructive tone. Highlighted the Jubilee Debt Campaign's success in reducing debt but noted that Africa's current debt levels are at their highest since over a decade ago, with China holding a large proportion of it. Emphasised the need for fair trade and taxation to unlock African countries' potential and criticised the inadequacy of existing mechanisms such as the Debt Service Suspension Initiative and the Common Framework for Debt Treatments. Urged the UK Government to listen to proposals from the Debt Justice campaign, including legislation that would ease debt restructuring processes.

Mr Lloyd highlighted the ongoing crisis in Africa and expressed disappointment that despite past promises, the situation has worsened. He cited an example of a child's death due to malnutrition 30 years ago, illustrating how debt continues to affect people's lives negatively. Emphasising the need for partnership between African nations and developed countries, he called for meaningful action on debt forgiveness and restructuring. Mr Lloyd also raised concerns about the disparity in returns for private debtholders compared to intergovernmental loans, urging the UK government to ensure fair treatment of all debt holders under UK law.