Ex-presidents want debt relief for cash-strapped African countries

Several former African heads of state and government have signed a declaration calling for debt relief for highly indebted nations.

The leaders are also advocating for lower borrowing costs for all developing countries.

The Cape Town 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 has 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 Nigeria’s Olusegun Obasanjo, Malawi’s Joyce Banda, Tanzania’s Jakaya Mrisho Kikwete, and Ameenah Gurib-Fakim of Mauritius.

Debt crisis

Others are Senegal’s Macky Sall, Ghana’s Nana Addo Dankwa Akufo-Addo, Ethiopia’s Hailemariam Desalegn, and former Nigeria vice-president Yemi Osinbajo.

The signatories called for intensified international cooperation to address the debt crisis and emphasised the urgent need to reform the global financial architecture to better support developing countries.

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,” he said.

“South Africa’s commitment to prioritising debt relief and collaborate with nations to address the root causes of high-cost debt is a welcome one.”

A statement from the initiative said that in 2023, low- and middle-income countries collectively spent $1.4 trillion (Sh182 trillion) servicing foreign debt, with interest payments reaching $406 billion (Sh52.9 trillion).

Africa, in particular, is facing disproportionately high borrowing rates, making it harder to invest in the continent’s growth and development, the leaders said.