South African opposition leader Julius Malema has cautioned African countries against excessive borrowing from global financial institutions, describing it as a “debt trap” that could mortgage the continent’s future.
Malema, leader of the Economic Freedom Fighters (EFF), gave the warning on Sunday during his keynote speech at the Nigerian Bar Association (NBA) Annual General Conference in Enugu.
“Africa Must Stop Mortgaging Its Future”
Malema criticized African leaders for taking loans without accountability, warning that repayments are draining national revenues in countries like Nigeria and Ethiopia.
“Our leaders commit future generations to debts, yet they will not be here when the colonisers come to collect,” Malema said.
He stressed that foreign loans from institutions such as the World Bank and International Monetary Fund (IMF) often come with conditions that weaken African economies instead of strengthening them.
South Africa Moves to Regulate Borrowing
The EFF leader revealed that his party has already introduced the Public Finance Management Amendment Bill in South Africa’s parliament.
If passed, the bill would require the National Treasury to seek parliamentary approval before taking loans from global financial bodies. Malema said this law is necessary to prevent reckless borrowing and ensure transparency in managing public finances.
Call for Stronger Nigeria–South Africa Ties
Beyond debt concerns, Malema emphasized unity between African nations. He argued that Nigeria and South Africa, with their vast resources and human capital, can drive the continent’s industrialization if they work together.
“Our salvation lies here, in Lagos and Johannesburg, in Abuja and Pretoria, in the hands of Africans who refuse to be divided,” he declared.
Rising Debt Crisis in Africa
Malema’s warning comes at a time when several African nations are grappling with rising debt burdens. In Nigeria and Ethiopia, loan repayments consume significant portions of government revenue, raising fears of economic instability.
Analysts have long cautioned that dependence on external loans without strong repayment plans risks pushing Africa deeper into financial dependency.
Malema’s message is clear: Africa must rethink its borrowing culture. Instead of relying heavily on foreign loans, he urges leaders to strengthen cooperation, accountability, and self-reliance. For nations like Nigeria, Ethiopia, and others facing mounting debt, the warning serves as a reminder that financial freedom is key to sustainable development.
