Obasanjo, 7 ex-leaders seek debt relief for African countries
Eight former African Heads of State and Government have signed a Cape Town Declaration, calling for debt relief for highly indebted countries and advocated 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.
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 had made debt sustainability a central focus.
The declaration also aligns with the African Union’s Agenda 2063, underscoring the continent’s long-term development aspirations.The African Leaders Initiative on debt relief is led by a group of former African leaders, including a former President of the Federal Republic of Nigeria (Chair), Olusegun Obasanjo; former President of the Republic of Malawi, Joyce Banda; former President of the United Republic of Tanzania, HE Jakaya Mrisho Kikwete; and former President of the Republic of Mauritius, Dr Ameenah Gurib-Fakim, among others.
The signatories called for intensified international cooperation to address the debt crisis and emphasised the need to reform the global financial architecture to better support developing countries.
The African Leaders Debt Relief Initiative continues to advocate 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.
Obasanjo said: “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 across the continent. South Africa’s commitment to prioritizing debt relief and collaborate with nations to address the root causes of high-cost debt is a welcome one.”
According to Sall, African countries are burdened with disproportionately high borrowing rates and debt costs, often requiring repayment within a short timeframe and a comprehensive solution to the debt crisis must be a priority for all.
Banda said: “Countries on the frontlines of the development crisis are the same ones grappling with record levels of debt. By 2030, these nations will need to invest up to $6.4 trillion annually to achieve sustainable development. However, this goal remains unaffordable given their overwhelming debt servicing obligations.”
