Eight former African Heads of State and Government have signed the Cape Town Declaration, emphasizing the urgent need for debt relief for highly indebted nations and advocating for lower borrowing costs for all developing countries.
This Declaration was signed at the launch of the African Leaders Debt Relief Initiative (ALDRI), which underscores the leaders’ commitment to establishing a comprehensive debt relief strategy for countries facing dire financial challenges.
The initiative’s launch occurred on the sidelines of the inaugural G20 Finance Ministers’ meeting in Cape Town, where the South African G20 Presidency has prioritized debt sustainability. President Ramaphosa voiced his support for the African Leaders Debt Relief Initiative, which also aligns with the African Union’s Agenda 2063, reflecting the continent’s long-term development goals.
Champions of the Initiative
The African Leaders Debt Relief Initiative is led by a distinguished group of former African leaders, including:
- 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)
Together, these leaders have called for urgent international cooperation to restructure the global financial system and advocate for sustainable economic policies that provide developing nations with the financial flexibility necessary to invest in their futures.
Addressing the global debt crisis
In 2023, low- and middle-income countries spent an astonishing $1.4 trillion on debt servicing, with $406 billion allocated solely for interest payments. Many African nations struggle with unsustainable debt burdens and disproportionately high borrowing costs, hindering their ability to invest in critical sectors such as healthcare, education, and infrastructure.
As the world approaches the G20 Summit in 2025, the Cape Town Declaration serves as a powerful call to action, emphasizing the necessity for a comprehensive, fair, and sustainable approach to global debt relief.
What global leaders are saying
“Africa is facing unsustainable debt burdens. It is crucial that we come together to find a solution to this crisis. Africa’s future is intertwined with the world’s future, and we must work to resolve the debt crisis to drive sustainable economic development.” – Olusegun Obasanjo, Former President of Nigeria
“African countries are burdened with disproportionately high borrowing rates and debt costs, often requiring repayment within a short timeframe. A comprehensive solution to the debt crisis must be a priority for all.” – Macky Sall, Former President of Senegal
“By 2030, developing nations will need to invest up to $6.4 trillion annually to achieve sustainable development. However, this goal remains unattainable given their overwhelming debt obligations.” – Joyce Banda, Former President of Malawi.
“A global solution to this crisis is not only vital for African economies but will also benefit the world at large.” – Jakaya Mrisho Kikwete, Former President of Tanzania
“The Global South has suffered under crippling debt for far too long. This must mark a turning point. Small Island Developing States (SIDS), like Mauritius, are particularly vulnerable to climate change, yet they are drowning in debt while addressing its devastating impacts.” – Dr. Ameenah Gurib-Fakim, Former President of Mauritius
“Multilateral cooperation is essential for reforming the global debt system. Africa must have a voice in shaping these reforms.” – Hailemariam Desalegn, Former Prime Minister of Ethiopia
“More than half of African nations allocate more funds to interest payments than to healthcare. This must change. South Africa’s G20 Presidency offers a unique opportunity to lead the charge on debt relief.” – Yemi Osinbajo, Former Vice President of Nigeria
Time for Debt Reform is Now
The African Leaders Debt Relief Initiative remains committed to advocating for policies that promote economic resilience and sustainable growth. As global leaders and financial institutions move toward reform, this initiative serves as a beacon of hope for millions across Africa and beyond. The time for action is now.
