Cape Town Declaration: Obasanjo, other African leaders call for debt relief

Eight former African heads of state and government have signed the Cape Town Declaration, calling for the critical need for debt relief for highly indebted nations and advocating for lower borrowing costs for all developing countries.

The Declaration was signed at the launch of the African Leaders Debt Relief Initiative (ALDRI), which reflects the leaders’ commitment to rallying for a comprehensive debt relief strategy for countries in dire financial situations, according to a statement.

The launch of the initiative took place on the sidelines of the first G20 Finance Ministers’ meeting in Cape Town, where the South African G20 Presidency has made debt sustainability a central focus with President Rampahosa expressing his support for the African Leaders Debt Relief Initiative.

The Declaration also aligns with the African Union’s Agenda 2063, underscoring the continent’s long-term development aspirations, according to the statement.

The ALDRI is chaired by Olusegun Obasanjo, former President of Nigeria. Other ex-presidents who are members are Joyce Banda (Malawi), Jakaya Mrisho Kikwete (Tanzania), Dr. Ameenah Gurib-Fakim (Mauritius), Macky Sall (Senegal), and Nana Addo Dankwa Akufo-Addo (Ghana). Other members are Hailemariam Desalegn, former Prime Minister of Ethiopia, and Yemi Osinbajo, former Vice President of Nigeria.

Together, they have called for urgent international cooperation to restructure the global financial system, advocating for sustainable economic policies that provide developing nations with the financial flexibility they need to invest in their future.

In 2023 low- and middle-income countries spent $1.4 trillion on debt servicing, with $406 billion going solely to interest payments. Many African nations face unsustainable debt burdens and disproportionately high borrowing costs, making it nearly impossible to invest in critical sectors such as healthcare, education, and infrastructure, according to the statement.

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 in order 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, 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