Case Study Of South Africa

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2. CHAPTER THREE: EXTENDED CASE STUDIES: SOUTH AFRICA, NIGERIA AND KENYA 2.1. South Africa The following case study examines South Africa’s Debts, its legality and development, and consequently the repercussions. 2.1.1. Facts and figures South Africa external debt as at the time of independence was $21.671 billion and according to WB, this amount was largely the debt incurred by the apartheid regime. The interest rate that is charged was about 15.6%, making the loan swell at a very fast rate . As of 2000, the country’s external debt had reached $25.435 billion that unfortunately was largely because of the huge apartheid debt that was forced on the newly independent state. In 2010 and 2013, the debt amounted to $107.131 billion and $139,845 billion respectively .…show more content…
He went ahead, used the term ‘immoral debt’, and is quoted to say, ‘Must we starve our children to pay our debts’ 2.1.2. Recognition of South Africa as a Special Case In some nations, such as Nigeria, odious debts have been partly caused by the African leaders and public servants who embezzle borrowed funds and huge overspending budgets. But this is not the case for the apartheid debt; it is unique in the sense that the monies were used to subjugate the people who are expected to pay the debt . Another reason why the South Africa odious debt is of importance is the fact that the apartheid regime did not affect South Africa only, the other neighboring nations in the south incurred huge debt burden because of the regime . 2.1.3. The Creditors Apartheid main creditor, supporters and beneficiaries were the US, Switzerland, Germany and UK who accounted for about 90% of the long-term loans. Apartheid debts, in the narrow sense, are those debts that the newly elected democratic government inherited from the former apartheid regime in South
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