Mozambique disappointed at failure to cancel foreign debt
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.As relief operations in Mozambique were hindered again by new rains, the country's government said yesterday it was disappointed that creditors had decided to suspend - rather than cancel - its large foreign debt in the wake of last month's flood disaster.
However, economists specialising in Mozambique added an optimistic note, saying that foreign help with rebuilding the country's infrastructurewas likely to boost the economy.
Mozambique's Foreign Minister, Leonardo Simao, expressed disappointment that the Paris Club of creditors had decided on Wednesday only to grant his government a "debt holiday" from payments this year. He said: "We are satisfied that a positive step was taken for Mozambique's debt. [But] our expectation was for the full cancellation of the debt."
While still one of Africa's poorest countries, labouring under a heavy debt burden, Mozambique nevertheless had, before the floods, the fastest growing economy in the world. Mr Simao said his country would continue to lobby for a write-off of its debts. His government claims repairing flood damage to roads, bridges and other infrastructure is likely to cost $250m.
The country's Paris Club creditors - which includeBritain, the United States and Portugal - said on Wednesday they would defer all payments due on the country's external debt as part of measures to help overcome its "current exceptional state of emergency".
The World Council of Churches also appealed to the powerful G8 nations to write off Mozambique's debts. "Only complete cancellation ... will do," the council said. But Matthew Pearson, an Africa analyst at Investec in London, said investment was more important than debt cancellation.
He said: "If foreign aid is used to rebuild the infrastructure we could see even greater growth in Mozambique."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments