Eight former African Heads of State and Government have signed the Cape Town Declaration, urging urgent debt relief for highly indebted nations and advocating for lower borrowing costs for developing countries. The Declaration was signed at the launch of the African Leaders Debt Relief Initiative (ALDRI) in Cape Town, coinciding with the first G20 Finance Ministers’ meeting under South Africa’s presidency.
Led by former Nigerian President Olusegun Obasanjo, the initiative includes notable signatories such as Joyce Banda (Malawi), Jakaya Kikwete (Tanzania), Ameenah Gurib-Fakim (Mauritius), Macky Sall (Senegal), Nana Akufo-Addo (Ghana), Hailemariam Desalegn (Ethiopia), and Yemi Osinbajo (Nigeria). These leaders emphasize the urgent need to reform global financial structures to alleviate the unsustainable debt burden in Africa.
In 2023 alone, low- and middle-income countries spent $1.4 trillion on foreign debt servicing, with interest payments soaring to $406 billion. African nations, in particular, face disproportionately high borrowing rates, severely limiting investments in crucial sectors such as health, education, and infrastructure.
Obasanjo stressed the global impact of Africa’s debt crisis, stating, “Africa’s future is intertwined with the world’s future. Debt relief is necessary to drive sustainable economic development.” Former Malawian President Joyce Banda highlighted the financial strain on developing nations, noting that they need to invest up to $6.4 trillion annually to achieve sustainable development goals, an impossible feat under crushing debt obligations.
Macky Sall and Jakaya Kikwete emphasized how rising interest rates and a stronger U.S. dollar have worsened the crisis, making it harder for African nations to manage dollar-denominated debt. Meanwhile, Ameenah Gurib-Fakim pointed to the vulnerability of Small Island Developing States (SIDS) like Mauritius, where climate-related challenges compound debt struggles.
As the 2025 G20 Summit approaches, the Cape Town Declaration seeks to galvanize global support for debt restructuring and sustainable financing solutions. Former Ethiopian Prime Minister Hailemariam Desalegn reiterated the importance of African representation in shaping global financial reforms, calling for multilateral cooperation among governments, financial institutions, and the private sector.
With South Africa leading the G20, the signatories hope this moment will mark a turning point in the fight for economic justice and financial sustainability across Africa.
