African leaders push for Aids loans

World Bank's James Wolfensohn and IMF chief Horst Koehler

By Elizabeth Blunt in Dar es Salaam

The heads of the International Monetary Fund and the World Bank are in the Tanzanian city of Dar es Salaam, for the second of two regional meetings with African heads of state.

One difference from the earlier meetings, in Bamako, is that more time is certain to be devoted to the issue of HIV and Aids, since the countries meeting here are the worst affected in the world.

Twelve presidents from east and southern Africa have gathered to meet Horst Koehler and James Wolfensohn for a two-day round of discussions on issues facing the continent.

Once again the turn-out is good. In east Africa, as in the West, few leaders want, or feel it wise, to turn down an invitation from the two most powerful lending institutions.

Caring for Aids sufferers is a huge issue for many African societies

Uganda, Tanzania and Mozambique are here, all countries now being held up as a model of sound economic development.

But so too are President Daniel arap Moi of Kenya and President Robert Mugabe of Zimbabwe, both of whose relations with the Bank and the Fund are bad and still deteriorating.

President Mugabe showed himself to be in combative mood in some off the cuff remarks at the airport, even before he set foot inside the conference hall.

Aids and patented drugs

The format of the meetings is expected to follow the same pattern set in Bamako earlier in the week, a series of topics offered for discussion with each session being led by opening remarks from one or two of the presidents.

Daniel arap Moi has a stormy relation with lending institutions

The discussion on Aids may be heated. The World Bank is proud that it is offering generous extra funding to fight Aids, but sceptics here point out that the money is a loan and not a grant and so will just increase African debt still further.

They also point out that the reason it is needed is that African countries are being pressured into buying patented drugs from big manufacturers at what they consider exorbitant prices, rather than being allowed to import the same drugs in generic from India, Brazil and other low cost producers.