Impact of IFI Loans on South Africa

A submission to the South African Parliament by civil society and trade union representatives detailing the risks of loans from International Finance Institutions (IFIs), specifically regarding debt sustainability, policy conditionalities, and the need for increased parliamentary oversight and transparency.

• Recent loans from International Finance Institutions (IFIs), including the World Bank and the International Monetary Fund (IMF), totaling R141 billion, have raised concerns regarding debt sustainability and the imposition of policy conditionalities.
• The document warns that IFI loans may lead to austerity measures, privatisation, and the weakening of state institutions in the healthcare and education sectors, which could increase inequality, deepen poverty, and reduce job opportunities.
• The submission calls for a comprehensive long-term impact assessment prior to incurring IFI loans, which should evaluate the financial burden on taxpayers, debt sustainability, and effects on human rights obligations, with results presented to Parliament and the South African Human Rights Commission.
• Recommendations for reform include the implementation of gender-responsive budgeting to protect vulnerable groups like caregivers, the public disclosure of loan agreements, and a potential moratorium on specific IFI loans until reforms are enacted.

APA

iej_admin (2023). Impact of IFI Loans on South Africa. Institute for Economic Justice. https://iej.org.za/resource/submission/joint-parliamentary-submission-international-financial-institutions-ifi-lending-in-south-africa/

Chicago

iej_admin. Impact of IFI Loans on South Africa. Institute for Economic Justice, 2023. https://iej.org.za/resource/submission/joint-parliamentary-submission-international-financial-institutions-ifi-lending-in-south-africa/.

Wikipedia

{{cite press release |last1=iej_admin |title=Impact of IFI Loans on South Africa |publisher=Institute for Economic Justice |date=18 October 2023 |url=https://iej.org.za/resource/submission/joint-parliamentary-submission-international-financial-institutions-ifi-lending-in-south-africa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{iejadmin2023impact, author = {iej\_admin}, title = {{Impact of IFI Loans on South Africa}}, publisher = {Institute for Economic Justice}, year = {2023}, month = oct, url = {https://iej.org.za/resource/submission/joint-parliamentary-submission-international-financial-institutions-ifi-lending-in-south-africa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }