Italy has launched a programme to suspend debts of African nations and convert them into investments.
Giorgia Meloni, the country’s prime minister, spoke on
Saturday at the 39th African Union (AU) summit in Addis Ababa, Ethiopia.
The prime minister’s announcement forms part of the ‘Mattei
Plan’ — a set of economic and diplomatic projects to strengthen Italy’s
presence in Africa through combining investment, cooperation and anti-migration
efforts.
Speaking during the opening session, Meloni said she
believed debt cancellation is crucial for building a “truly free Africa capable
of determining its own destiny”.
“We wanted to chart a course on this issue as well.
Therefore, Italy has decided to launch a vast program to convert the debt of
African nations, which includes, among its main points, the complete
transformation of the debt of the most fragile and vulnerable countries into
investments, and the strengthening of the contribution to the World Bank’s IDA
funds,” she said.
Towing the line of the summit’s theme on water
sustainability, the Italian prime minister added that the concessions would
also be in forms of climate reliefs.
“Similarly, we have introduced specific debt suspension
clauses into our bilateral loans, allowing African nations affected by extreme
weather events to free up fiscal space to help their populations and rebuild
essential infrastructure,” she said.
“These are choices based on justice and responsibility,
which are crucial for freeing up resources that are vital for development and
for ensuring peace and prosperity, including in those areas of the continent
that are currently more affected than others by instability, insecurity, and
serious humanitarian crises, such as neighbouring Sudan and eastern Democratic
Republic of the Congo.”
African nations have continued to press for debt relief and
reparations from wealthier countries, arguing that historical exploitation and
unequal economic structures have compounded their current fiscal
vulnerabilities.
However, experts argue that an over-reliance on debt
cancellation risks reinforcing dependency, insisting that sustainable growth
will ultimately depend on stronger domestic investment, revenue mobilisation,
and institutional reforms.
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