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Insight & Analysis - April 1, 2022

3 Ways the World Bank is Enslaving Africa

According to research, the World Bank is an organisation that is helping Africa countries develop a regional strategy. Also, to focus on strengthening engagement on infrastructure, trade, economic integration, resilience, and human capital. 

The World Bank collaborates with the EU and the African Development Bank. The World Bank also assists governments in dealing with forced migration and refugees.

The real question here should be, is the World Bank genuinely helping Africa or enslaving Africa for personal gain? 

The World Bank, according to Investopedia, is an international financial agency that lends and gives money to governments in low and middle-income nations to fund capital projects. 

At the 1944 Bretton Woods Conference, it was founded by the International Monetary Fund (IMF), an organisation that works to secure financial stability worldwide. 

The World Bank has incorporated NGOs and environmental groups in its lending portfolio for the past 30 years. 

However, If the World Bank was created to solve monetary issues in countries, why are most African countries still wallowing in economic crisis?

Here are 5 ways the world bank is enslaving Africa.

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The World Bank is Making Harder for Africa to Conquer Poverty

According to World Data Lab, the global poverty burden is concentrated in Africa. More than 150 million people live in extreme poverty in just two countries, Nigeria and the Democratic Republic of the Congo.

According to its projections, Africa will account for over 80% of the countries unable to eradicate poverty by 2030. 

Africa, in reality, is experiencing both gains and losses. Approximately 40% of Africans live on less than $1.90 each day. 

Poverty in Sub-Saharan Africa is twice more than that in South Asia, the world’s second poorest region.

Furthermore, by any measure, Africa’s proportion of global revenue has been steadily declining over the last century. 

In 1820, the average wage for a European worker was roughly three times that of an African worker. Presently, an average European makes twenty times as much as the average African.

The World Bank and IMF have borrowed Africa large loans. Nigeria owes $10.74 billion to the World bank, whereas Mozambique owes $9.3 billion. 

These sums are far more than these countries can repay, and there is little prospect for these countries.

Regardless of the unforeseeable result and repayment default, the World Bank continues to lend to African governments.

Increasing Africa’s financial dependence. Also, allowing the World Bank to have more jurisdiction over any African government that owes it money.

The World Bank loans keep Africa in the background of oil explorations

Despite the richness of natural resources in Africa, the continent’s economy has little to show for it. The largest African economy, Nigeria produces two million barrels of oil every day, yet there is a scarcity.

Multinational oil corporations like Chevron, Shell and ExxonMobil, have built massive firms in Nigeria to help scout and produce oil found in the country. 

However, many scholars have associated the stymied development of the country down to the host states, the Niger Delta region with the multinational oil companies.

Oil- rich communities do not reap benefits comparable with the profits generated by crude oil exploration and exploitation in the region. 

This paradox emphasises the region’s violent crisis caused by disgruntled youngsters. 

Similarly, Angola, Equatorial Guinea, and Sudan are among the top five oil exporters in Sub-Saharan Africa, but their development record has been poor.

Regardless of how rich in natural resources most African countries are, they continue to borrow from the World Bank.

The institution is aware of the ability of these African countries, but it continues to lend money to them, providing foreign companies with a competitive advantage over these countries.

The World Bank is stalling the post-pandemic economic recovery in Africa  

Due to the COVID- 19 pandemic, the World Bank estimated that the outbreak had pushed up to 40 million people into extreme poverty. 

A month of harsh lockdown in South Africa last year is reported to have cost 1 million jobs, and there has been a considerable increase in reports of hunger among people of Africa’s most industrialised nation. 

The graduate unemployment rate in Nigeria has risen to more than 40% due to a severe slump.

However, COVID-19 has been argued by scholars to be a scam. Otoohhiaus Cyril, a genetics and animal breeding professor, has described the COVID-19 pandemic as a ruse.  

 According to Cyril, the Western world perpetrated it to produce trillions of dollars. This is at the expense of Africans and other people around the globe. 

Even after the COVID-19 outbreak, African countries have been borrowing heavily from the World Bank, the International Monetary Fund, and other Chinese institutions. 

Even though they know Africa is incapable of repaying loans and repairing its economy, they continue to lend.

As a result, Africans are enslaved to remain in debt to these organisations. As a result, providing the group with an advantage in dominating the continent’s operations.

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