Debt beats hospitals in 25 African states, Lamola says

For millions of Africans, the numbers are not abstract. In 25 African countries, governments have in recent years spent more on servicing debt than on hospitals and classrooms. That reality, International Relations and Cooperation Minister Ronald Lamola told delegates at a conference on the future of Europe-Africa relations in Pretoria on Monday, is what a fairer global partnership must answer.

African and other developing countries face borrowing costs estimated to be three to six percentage points higher than those of non-African states, Lamola said. Behind those figures lie real constraints on what governments can deliver for their people. He called on longstanding partners to back reform of the international financial architecture, including the newly launched African Credit Rating Agency and proposals for a borrowers’ club.

His central message: partnerships between Africa and Europe must move beyond shared ambitions to practical cooperation that supports economic transformation, industrialisation and prosperity on both continents. “We are not asking for old-style paternalism; we seek genuine partnership, a compact, based on mutual responsibility and mutual accountability,” he said, calling for a relationship grounded in mutual respect and shared responsibility, with Africa taking greater control of its economic destiny.

The argument, in his framing, is about people as much as policy. Africa has historically supplied raw materials that generated prosperity elsewhere while many of its people continue to experience deprivation. The continent now needs partnerships that end its economic marginalisation and support structural transformation, including investment in mineral beneficiation, domestic processing and manufacturing. “There is a meeting place between Europe’s pursuit of resilient supply chains and Africa’s ambition to attract investment into mineral exploration, domestic processing and manufacturing industries,” Lamola said. Europe, he added, could contribute technology and capital to support beneficiation at source, letting African countries derive greater economic value from their natural resources.

Infrastructure is another area where the stakes are tangible for communities across the continent. Lamola cited an annual infrastructure financing gap of roughly US$170 billion, with rising borrowing costs and pressure on public finances continuing to constrain development. He pointed to the European Union’s Global Gateway initiative as a chance to invest in transport corridors, modern ports and infrastructure connecting African markets, in line with the continent’s integration priorities and implementation of the African Continental Free Trade Area. Intra-European trade exceeds 60%, he noted, while trade between African countries stands at just over 14%.

Africa’s limited voice in global decision-making also featured prominently. The continent needs a stronger say in institutions governing peace and security, trade and finance, including the United Nations Security Council, Lamola said. “It is not rational that peace on the continent does not receive financial support from the UN Security Council,” he said.

Cooperation, he argued, should extend to migration and mobility, border management and the fight against drug trafficking and transnational organised crime. He cited the call by the 2025 African Union-European Union Summit in Luanda, Angola, for “an enhanced and reciprocal partnership for migration and mobility”, and said African countries could benefit from European support for specialised training in financial crime, cybercrime, counter-terrorism, digital forensics and asset recovery.

Some of his warnings speak directly to livelihoods. Global competition for critical minerals, he cautioned, risks reproducing historical patterns of exploitation. “If we do not treat the rare minerals issue with respect and prudence, it runs the risk of becoming another ‘scramble for Africa’, with serious negative ramifications for Africa,” he said. He raised concerns about the European Union’s carbon tax on imports, noting that the EU is a significant market for African exports including fertiliser, iron and steel, aluminium and cement, and that some forecasts suggest the tax could cost Africa as much as US$25 billion in gross domestic product. Europe, he said, should balance its low-carbon ambitions with the industrialisation needs of developing economies. He also cited the COVID-19 pandemic, vaccine access restrictions and travel bans that disproportionately affected African countries as tensions that had raised questions about the strength of the partnership.

Despite these differences, disagreements should not undermine cooperation, Lamola stressed, and Africa must retain the freedom to pursue partnerships with different countries and regions in line with its development interests. “The partnership between Africa and Europe cannot demand allegiance to one bloc or exclusivity. Africa must retain the space to cultivate partnerships with different countries and regions in pursuit of its own interests and development aspirations,” he said. He warned that democratic backsliding, disinformation and growing disillusionment with democratic institutions pose challenges to both continents, and that cooperation is increasingly necessary as global power competition intensifies and public trust in institutions weakens.

For Lamola, Africa’s promise lies in its people. “Africa, in turn, brings its own share of prospects. We have a growing population, overwhelmingly young and pulsating with energy, talent and creativity,” he said, adding that the continent wants to create pathways to employment and entrepreneurship rather than remain a supplier of labour and raw materials. He closed by calling for evidence-based discussions that confront difficult questions about the future of Africa-Europe relations, quoting the concluding words of Jakkie Cilliers’ book, Africa’s Road to Prosperity, on the importance of resilience and patience in navigating global shocks. “These words apply to Africa’s future as much as it does to how our continent relates to Europe and the world,” he said. The full address is available at https://www.sanews.gov.za/south-africa/lamola-calls-equal-africa-europe-partnership-drive-economic-transformation.