South African opposition leader Julius Malema on Sunday urged African nations to strictly regulate borrowing from the International Monetary Fund (IMF), World Bank and similar institutions, warning that such loans could compromise the continent’s future.
Speaking in Enugu, southeast Nigeria, at the opening of the Nigerian Bar Association’s Annual General Meeting, Malema described the loans as a “death trap” that can mortgage Africa’s long-term development and sovereignty.
“These loans are a trap,” said the leader of the Economic Freedom Fighters (EFF), South Africa’s third-largest political party. “They may look like solutions today, but tomorrow they enslave us and rob our children of their future.”
Malema said the South African parliament is already considering measures to scrutinise and potentially restrict the state’s reliance on debt from international financial institutions. According to him, unchecked borrowing often comes with harsh conditions that weaken national independence and entrench poverty.
The firebrand politician, known for his sharp criticism of Western influence in Africa, argued that reliance on IMF and World Bank loans creates a cycle of dependency that leaves nations vulnerable. He said the continent must explore alternatives such as regional development banks, intra-African trade, and industrialisation strategies that rely less on external creditors.
“Africa cannot continue to look outside for survival,” Malema told the gathering of lawyers, academics and policymakers. “We must build our own institutions that serve our people, not undermine them.”
His remarks reflect growing disquiet in parts of Africa over rising debt levels. Several countries, including Ghana, Zambia and Ethiopia, have sought IMF bailouts in recent years, sparking debate over whether the financial lifelines bring stability or deepen hardship through austerity measures.
