By: Rusana Philander in South Africa
Eight former African Heads of state and government, signed a declaration in Cape Town, rallying for a comprehensive debt relief strategy for African countries in dire financial situations.
They also launched the African Leaders Debt Relief Initiative (ALDRI), which is calling for the critical need for debt relief for highly indebted nations and advocating for lower borrowing costs for all developing countries.
The former heads of state who signed the declaration are: HE Olusegun Obasanjo, Former President of the Federal Republic of Nigeria (Chair), HE Macky Sall, Former President of the Republic of Senegal, HE Joyce Banda, Former President of the Republic of Malawi, HE Jakaya Mrisho Kikwete, Former President of the United Republic of Tanzania, HE Dr. Ameenah Gurib-Fakim, Former President of the Republic of Mauritius, HE Hailemariam Desalegn, Former Prime Minister of the Republic of Ethiopia and HE Yemi Osinbajo, Former Vice President of the Federal Republic of Nigeria.
The Declaration made an urgent appeal to the G20 ministers who also recently met in Cape Town, to solve the global financial crisis. Obasanjo said: “We welcome the commitment showed by President Cyril Ramaphosa, to give priority in ensuring debt sustainability for developing countries. Africa is trapped in a crippling debt crisis which is the worst in 80 years. More than half of the population are living in countries that spend more payments on the interest of debt than on education, health, or the mitigation of climate change. Africa is facing high borrowing rates.
“This strangulates development. The interest that is being paid could’ve gone into essential areas such as social welfare, education and health. We would seek to subsidise not only African countries but also developing nations. The proposal presents a two-pronged approach. The first is comprehensive debt restructuring and lowering the cost of capital for all developing nations,” Obasanjo said.
Banda added: “What is being sought is debt relief, not charity. Debt relief is an investment in Africa’s sustainable future. It is a precondition for the successful implementation of the African Union’s Agenda 2063. A strong Africa means a stronger world. Unlocking Africa’s potential will drive global growth and strengthen supply chains.”
As the G20 Summit in 2025 draws nearer, the Cape Town Declaration offers a timely opportunity to focus attention on Africa’s debt crisis and the broader challenges faced by developing nations, including health, education, food and energy insecurity and the environment.
The African Leaders Debt Relief Initiative continues to advocate for policies that promote economic resilience and sustainable growth across the African continent. The signatories are committed to working collaboratively with international stakeholders to implement these crucial reforms, ultimately driving forward Africa’s development agenda.
