UK writes off multilateral debt and consults on Commission for Africa proposals in Mali

Chief Secretary to the Treasury, Paul Boateng, today presented a full signature Memorandum of Understanding in Mali with Minister for Investment Promotion Ousame Thiam in Bamako. This will provide $45.4 million of debt relief between 2005 and 2015. The meeting took place during the Chief Secretary’s visit to West Africa as part of his Commission for Africa consultations with African nations.

Paul Boateng said:

“Africa is a key priority for the UK presidencies of the G7 and G8. Earlier this month in London G7 finance Ministers indicated that they would be willing to provide as much as 100 per cent multilateral debt relief for the poorest countries. The UK is leading the way by paying our share of the debt owed by Mali to the World Bank and African Development Bank, 10 per cent of the total multilateral debt. We are urging other countries to do the same.

To date, in Mali, resources from bilateral debt relief have led to more spending on education, with almost 2,500 classrooms constructed, and almost 2,000 teachers recruited and trained. This new commitment will allow more resources to be spent on poverty reduction.”

Mr Boateng also visited a programme for widows and orphans at Djicoroni. The programme assists 149 widows, giving them a chance to improve their lot in life, and provides education for the children.

Focusing international commitment on Africa is a key priority for the UK presidencies of the G7/G8 and also for the Commission for Africa. The Commission will make recommendations on the further action needed to ensure that Africa shares in the benefits of globalisation, and meets the Millennium Development Goals.

Speaking at a lunch hosted by Minister Thiam, Mr Boateng highlighted the priorities of the Commission and listened to views on Mali’s priorities for the Africa report and the way forward once the report is presented.

Paul Boateng said:

“Mali is a great country with much potential. I welcome the positive development progress I have seen on this visit. We need to ensure that through working together – through the Commission for Africa and NAPAD - we continue to tackle all the challenges facing Africa and ensure that Mali can make progress towards the Millennium Development Goals.”

Notes for editors

1. The Chief Secretary arrived in Mali on Sunday 13 February. He will meet the Minister for Investment Promotion, Ousmane Thiam, Prime Minister Maiga and President Toure. He is also visiting the Association des Veuves et Orphelins de Djicoroni (AVOD).

2. At the recent G7 summit in London, the UK gained agreement that the G7 nations are willing to provide as much as 100 per cent relief of the debts owed to multilateral institutions – the IMF, the World Bank and the African Development Bank. The UK Government has already stated that it will pay its share of the debt service for the World Bank and African Development Bank, and is taking immediate action on debt relief for an initial 19 countries.

3. The Commission for Africa was established to consider the evidence on Africa, and to make recommendations on the further action needed to ensure that Africa shares in the benefits of globalisation, and meets the Millennium Development Goals. The third meeting of the Commission for Africa is on 24 February and it will publish its final report in March. The G8 will consider its recommendations in the rest of 2005. The aim is to produce an overall vision of Africa’s development, and international support for that process, to which all can subscribe.

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