In a bold move to address Africa’s mounting debt crisis, eight former African heads of state and government have signed the Cape Town Declaration, calling for urgent 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), a strategic effort to push for a comprehensive debt relief framework that supports sustainable economic growth across the continent.
The launch took place on the sidelines of the G20 Finance Ministers’ meeting in Cape Town, where South Africa’s presidency has made debt sustainability a top priority.
The African Leaders Initiative on Debt Relief is spearheaded 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
The signatories are calling for urgent international cooperation to address the worsening debt crisis and are pushing for a reform of the global financial system to better serve developing economies.
The numbers paint a grim picture. In 2023, low- and middle-income countries collectively spent $1.4 trillion servicing external debt, with interest payments alone reaching $406 billion. African nations, in particular, are burdened with high borrowing costs, leaving little room for investments in critical sectors such as healthcare, education, and infrastructure.
“Africa is facing unsustainable debt burdens. It is crucial that we come together to find a solution to this crisis,” said Olusegun Obasanjo, former president of Nigeria. “Africa’s future is intertwined with the world’s future, and we must work to resolve the debt crisis in order to drive sustainable development across the continent.”
The Cape Town Declaration stresses that immediate debt relief is not just a regional issue—it is a global necessity.
With the G20 Summit in 2025 approaching, the Declaration presents a timely opportunity to mobilise international support for Africa’s debt relief and broader economic challenges. The signatories argue that without intervention, the continent will struggle to meet its development targets, including the UN Sustainable Development Goals (SDGs).
“There is over $1 trillion available globally for the development of sports, education, and economic infrastructure. African nations must position themselves to benefit from these resources, but without debt relief, they will remain trapped in financial distress,” said Macky Sall, former president of Senegal.
The African Leaders Debt Relief Initiative will continue to engage G20 nations, multilateral lenders, and private creditors to negotiate fair and sustainable debt restructuring. The initiative also aims to secure long-term financing solutions that will prevent future debt crises.
“African countries are burdened with disproportionately high borrowing rates and debt costs, often requiring repayment within a short timeframe,” said Joyce Banda, former president of Malawi. “A comprehensive solution to the debt crisis must be a priority for all.”
As the world’s financial powers gather to discuss global economic challenges, African leaders are making it clear: Africa’s debt crisis cannot be ignored any longer.
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