Eight former African Heads of State and Government have signed the Cape Town Declaration, a landmark call for urgent debt relief for highly indebted nations and reduced borrowing costs for all developing countries.
The declaration was endorsed at the launch of the African Leaders Debt Relief Initiative (ALDRI), a collective push for comprehensive reforms in the global financial system.
The initiative was unveiled during the G20 Finance Ministers’ meeting in Cape Town, where South Africa, as the current G20 President, has placed debt sustainability at the core of its agenda. The declaration also aligns with the African Union’s Agenda 2063, reflecting the continent’s long-term economic aspirations.
A UNITED FRONT FOR DEBT RELIEF
The African Leaders Initiative on Debt Relief is spearheaded by:
• Olusegun Obasanjo, Former President of Nigeria (Chair)
• Joyce Banda, Former President of Malawi
• Jakaya Mrisho Kikwete, Former President of Tanzania
• Dr. Ameenah Gurib-Fakim, Former President of Mauritius
• Macky Sall, Former President of Senegal
• Nana Addo Dankwa Akufo-Addo, Former President of Ghana
• Hailemariam Desalegn, Former Prime Minister of Ethiopia
• Yemi Osinbajo, Former Vice President of Nigeria.
Speaking at the signing, Olusegun Obasanjo underscored the urgency of addressing Africa’s growing debt burden.
“Africa is facing unsustainable debt burdens. It is crucial that we find a solution to this crisis. Africa’s future is tied to the world’s future, and resolving the debt crisis is key to driving sustainable economic development. South Africa’s commitment to prioritising debt relief is a welcome step,” he stated.
Macky Sall, Former President of Senegal, emphasised the urgency of global cooperation.
“African countries are burdened with high borrowing rates and short repayment terms. A comprehensive solution to the debt crisis must be a global priority.”
Joyce Banda, Former President of Malawi, linked the debt crisis to global development goals.
“By 2030, developing nations will need to invest up to $6.4 trillion annually to achieve sustainable development. This remains impossible with overwhelming debt servicing obligations.”
Jakaya Kikwete, Former President of Tanzania, pointed to rising interest rates as a key challenge.
“The strong dollar and rising interest rates have made it nearly impossible for African nations to manage dollar-denominated debt. A global solution is critical.”
Nana Akufo-Addo, Former President of Ghana, stressed the need for needs-based debt relief.
“Countries in distress must receive fair and needs-based debt relief to invest in sustainable solutions for their people.”
Dr. Ameenah Gurib-Fakim, Former President of Mauritius, highlighted the unique vulnerability of Small Island Developing States (SIDS).
“The Global South has suffered under crippling debt for far too long. Many SIDS are drowning in debt while dealing with the devastating impacts of climate change.”
Hailemariam Desalegn, Former Prime Minister of Ethiopia, called for financial system reform.
“Multilateral cooperation between countries, banks, and stakeholders is essential. Africa must have a voice in shaping these reforms.”
Yemi Osinbajo, Former Vice President of Nigeria, warned of the impact on public services.
“More than half of African countries now spend more on interest payments than healthcare. Immediate action is needed, and the G20 must lead the way.”
THE DEBT CRISIS: A GROWING CONCERN
In 2023, low- and middle-income countries collectively spent $1.4 trillion servicing foreign debt, with interest payments alone amounting to $406 billion. African nations, in particular, face disproportionately high borrowing rates, limiting their ability to invest in health, education, infrastructure, and climate resilience.
With the 2025 G20 Summit approaching, the Cape Town Declaration aims to keep Africa’s debt challenges at the forefront of global discussions. The signatories are advocating for:
• Lower interest rates and extended repayment timelines for African economies
• Reforms in the global financial system to make borrowing fairer
• Increased financial support for climate-vulnerable nations, including Small Island Developing States (SIDS)
• Greater international cooperation to address the root causes of Africa’s debt crisis
As the world looks toward the 2025 G20 Summit, the African Leaders Debt Relief Initiative is set to play a key role in shaping global discussions on debt reform, economic resilience, and sustainable development for the continent.
